Exam: Introduction To Accounting Quiz!

25 Questions | Total Attempts: 2465

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Accounting Quizzes & Trivia


Questions and Answers
  • 1. 
    The Accounting Equation is  
    • A. 

      Owner's Equity = Assets + Liabilities

    • B. 

      Assets = Liabilities - Owner's Equity

    • C. 

      Assets = Liabilities + Owner's Equity

  • 2. 
    Items owned by a business that have money value are known as:  
    • A. 

      Liabilities

    • B. 

      Owner's Equity

    • C. 

      Assets

  • 3. 
    What is the interest of the owners in the business known as?
    • A. 

      Assets

    • B. 

      Owner's Equity

    • C. 

      Liabilities

  • 4. 
    Money owed to an outsider is known as?
    • A. 

      Asset

    • B. 

      Liability

    • C. 

      Owner's Equity

  • 5. 
    Assets minus Liabilities equals to ___________________. 
  • 6. 
    Cash, Debtors, Land and Equipment are examples of __________.    (State whether these are Assets, Liabilities, or Owner's Equity).
  • 7. 
    Creditors, Short Term Loan and Notes Payable are examples of __________.    (State whether these are Assets, Liabilities, or Owner's Equity).
  • 8. 
    Capital, drawings and net income will affect ___________.    (State whether these affects Assets, Liabilities, or Owner's Equity).
  • 9. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Invested cash in a business: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example, i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased.)   
  • 10. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Purchased equipment for cash: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 11. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Purchased vehicle on credit: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example, i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have effect and Owner's Equity has no effect, the answer should be id n n).   
  • 12. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Paid creditors: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example, i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 13. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Borrowed monies from bank: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example: i n i  (This means Assets increased, Liabilities have no effect and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 14. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Received monies from debtor: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example, i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 15. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Withdrew monies for personal use: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 16. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Owner contributed some furniture to the business: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 17. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Sold away motor vehicle on credit: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example, i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 18. 
    Determine the net effect of the transaction by keying in i = increased, d = decreased, n = no effect. Repay a bank loan: Assets ___ = Liabilities ____ + Owner's Equity ____ State your answer in the box in this format, for example, i n i  (This means Assets increased, Liabilities have no effect, and Owner's Equity increased. If Assets increased and decreased and Liabilities have no effect and Owner's Equity has no effect, the answer should be id n n).   
  • 19. 
    Bought equipment worth $10,000 on credit. 
    • A. 

      Equipment decreased by $10,000 & Debtors decreased by $10,000

    • B. 

      Equipment increased by $10,000 & Creditors increased by $10,000

    • C. 

      Equipment decreased by $10,000 & Debtors increased by $10,000

    • D. 

      Equipment increased by $10,000 & Bank loan increased by $10,000

  • 20. 
    Paid creditor $5,000. 
    • A. 

      Creditors increased by $5,000 & Cash decreased by $5,000

    • B. 

      Creditors decreased by $5,000 & Cash decreased by $5,000

    • C. 

      Creditors increased by $5,000 & Cash increased by $5,000

    • D. 

      Creditors decreased by $5,000 & Cash increased by $5,000

  • 21. 
    Owner contributed $7,500 cash and $15,000 vechile to the business. 
    • A. 

      Cash increased by $7,500, Vehicle increased by $15,000 & Capital increased by $22,500

    • B. 

      Cash increased by $7,500 & Capital increased by $7,500

    • C. 

      Cash increased by $7,500, Vehicle increased by $15,000 & Capital increased by $7,500

    • D. 

      Cash increased by $7,500, Vehicle increased by $15,000 & Capital decreased by $22,500

  • 22. 
    The owner took some office equipment for personal use. 
    • A. 

      Equipment increased & Capital increased

    • B. 

      Equipment decreased & Capital increased

    • C. 

      Equipment decreased & Capital decreased

    • D. 

      Equipment increased & Capital decreased

  • 23. 
    Which accounting concept gives rise to the accounting equation? 
    • A. 

      Historical cost

    • B. 

      Going concern

    • C. 

      Monetary concept

    • D. 

      Accounting entity

  • 24. 
    Which accounting theory states that all transactions must be recorded at their cost at the time the transaction takes place? 
    • A. 

      Historical cost

    • B. 

      Going concern

    • C. 

      Monetary concept

    • D. 

      Accounting entity

  • 25. 
    C.K. Enterprise has fittings $4,000, inventory $5,000, debtors $2,750, bank overdraft $3,450 and creditors $1,250. Calculate the amount of owner's equity in the business. 
    • A. 

      7,500

    • B. 

      13,500

    • C. 

      7,050

    • D. 

      16,450