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- 1. Multiple Choice
If total assets are $2,000 and total liabilities are $1,500, what is stockholders' equity?
$500
$1,000
$1,500
$2,000
- 2. Multiple Choice
Which accounting method recognizes revenues and expenses when they occur?
double-entry accounting
accrual-basis accounting
cash-basis accounting
standard accounting
- 3. Multiple Choice
What does GAAP mean?
Generally Accepted Accounting Principles
Good Accepted Asset Pricing
Genuinely Acknowledged Accounting Practices
Good Accrual Accounting Practices
- 4. Multiple Choice
Current assets are those that can be turned into cash in what period of time?
one week
one month
one quarter
one year
- 5. Multiple Choice
A balance sheet summarizes changes in owner's equity during a fiscal period
True
False
- 6. Multiple Choice
Select all of the following that are stakeholders in a business.
investors
creditors
employees
competitors
- 7. Multiple Choice
What are the two accounting methods for recognizing revenues and expenses?
accrual
cash
delayed
immediate
- 8. Multiple Choice
Liquidity is the ability to turn an asset into cash.
True
False
- 9. Multiple Choice
How are assets ordered on a balance sheet?
alphabetical
least liquid to most liquid
most liquid to least liquid
- 10. Multiple Choice
Only current liabilities are listed on a balance sheet.
True
False
- 11. Multiple Choice
Which of the following are TRUE statements?
Debit is on the left side of an account
Credit is on the right side of an account
Debit always increases the value of an account
Credit always decreases the value of an account
- 12. Multiple Choice
Assets which are purchased for the purpose of operating the business and not for resale are called what?
current assets
fictitious assets
fixed assets
liquid assets
- 13. Multiple Choice
Which of the following items would not fall under the definition of an asset ?
accounts receivable
cash
loans
machinery
- 14. Multiple Choice
Accounting that requires a debit and credit for every transaction is called ___________?
single entry
double entry
financial accounting
journal entry accounting
- 15. Multiple Choice
Working capital is current assets minus current liabilities.
True
False
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