Accounting 101

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2. US G.A.A.P. stands for Generally Accepted Accounting Principles

True

False

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4. Which is the correct equation on the balance sheet?

Liabilities - Equity = Assets

Assets = Liabilities + Equity

Assets/Liabilities = Equity

Assets = (Liabilities)(Equity)

5. The principle is the amount of money that you have borrowed and do not have to give back

True

False

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8. A tangible asset is something that you can't touch.

True

False

9. Accounts Receivable is when the customer owes you money

True

False

10. Match the following

Accrued Expenses

Matching Principle

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11. Which of the following describes a CPA?

Independent, hired by a company to audit financial statements

Works for a company and audits balance sheets

Independent, hired by a company and accounts for all purchases

Cheapest person alive

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14. Another name for Cost Principle is

Original Cost Principle

Cost at Purchase

Original Price Principle

Historical Cost Principle

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16. Liquidity is the order in which something is expected to be paid

True

False

17. A company is required by law to pay dividends to its shareholders

True

False

18. When doing a journal entry, what is true about credits

Indented

Flush with the margin

Left side of t-chart

Right side of t-chart

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19. Which of the following have the power to form US G.A.A.P.?

S.E.C. (Securities Exchange Committee)

C.P.A. (Certified Practicing Accountant)

I.M.A. (Institute of Management Accounting)

F.A.S.B. (Financial Accounting Standards Board)

I.I.A. (Institute of Internal Auditors)

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20. What are the 2 features of Notes Payable

Signature and payment within 30 days

Signature and intrest

Payment within 30 days and intrest

Signature

21. What is the correct order of the accounting process?

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25. When doing a journal entry, what is true about debits?

Flush with the margin

Indented

Left side of t-chart

Right side of t-chart

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