Accounting 101
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Are you just beginning your journey to becoming an accredited accountant? Having being introduced to the basics on accounting and the principles governing it you now have a good foundation. Test your knowledge on accounting 101 before you move on to the next course. Remember practice makes perfect. Good luck!
- 1.Which of the following describes a CPA?
- A.
Independent, hired by a company to audit financial statements
- B.
Works for a company and audits balance sheets
- C.
Independent, hired by a company and accounts for all purchases
- D.
Cheapest person alive
- 2.____________ - long set of principles, practices, methods of accounting that have gained acceptance in the US
- 3.What did A.P.B. (Accounting Principle Board) develop?
- 4.What is the general rule for a Liability?
- 5.What is the general rule for an Asset?
- 6._______ - Consists of policies and procedures that are good for the company
- 7.What is the general rule for Expense?
- 8.US G.A.A.P. stands for Generally Accepted Accounting Principles
- A.
True
- B.
False
- 9.What is the general rule for Revenue?
- 10.What is the correct order of the accounting process?
- A.
Journal transactions, execute transactions, post journal entries to the general ledger, prepare and unadjusted trial balance, prepare and record adjusting entries, adjusted trial balance, prepare financial statements
- B.
Execute transactions, journal transactions, post journal entries to the general ledger, prepare and unadjusted trial balance, prepare and record adjusting entries, prepare financial statements, adjusted trial balance
- C.
Execute transactions, journal transactions, post journal entries to the general ledger, prepare and unadjusted trial balance, prepare and record adjusting entries, adjusted trial balance, prepare financial statements
- D.
Execute transactions, post journal entries to the general ledger, journal transactions, prepare and unadjusted trial balance, prepare and record adjusting entries, adjusted trial balance, prepare financial statements
- 11.What is the general rule for Equity?
- 12.A tangible asset is something that you can't touch.
- A.
True
- B.
False
- 13.Accounts Receivable is when the customer owes you money
- A.
True
- B.
False
- 14._________ - the idea that if you are in business today, you are expected to be in business indefinetly
- 15.What comes out of retained earnings (decreases retained earnings)?
- 16._______ - when revenue/income is recognized when a service is provided or merchandise is sold
- 17.______ - independent accuracy of financial statements
- 18.Another name for Cost Principle is
- A.
Original Cost Principle
- B.
Cost at Purchase
- C.
Original Price Principle
- D.
Historical Cost Principle
- 19.An example of an intangible asset would be
- 20.What are the 2 features of Notes Payable
- A.
Signature and payment within 30 days
- B.
Signature and intrest
- C.
Payment within 30 days and intrest
- D.
Signature
- 21.Which is the correct equation on the balance sheet?
- A.
Liabilities - Equity = Assets
- B.
Assets = Liabilities + Equity
- C.
Assets/Liabilities = Equity
- D.
Assets = (Liabilities)(Equity)
- 22.The principle is the amount of money that you have borrowed and do not have to give back
- A.
True
- B.
False
- 23.______ - what the item was originally paid for
- 24.When doing a journal entry, what is true about debits?
- A.
Flush with the margin
- B.
Indented
- C.
Left side of t-chart
- D.
Right side of t-chart
- 25.________ - an account that is expected to be payed within 30 days
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