Basic Accountin g is as easy as s

Basic Accountin g is as easy as… s e r f f e J i t s i r By: K 1 2 3

Labeling The Basic Accounting Equation Great Job! Let’s move on and test your knowledge on the basics of accounting. Directions: Place the correct word or symbol on each line. Don’t forget to keep the scale in balance! Liabilities Assets = + Owner’s Equity

Question #1 Which of the following accounts is increased with a credit? (a) Supplies Expense (b) Supplies (c) Fees Earned (d) Owner’s Withdrawals

Question #2 The cost of operating a business is called… (a) An expense (b) A liability (c) A withdrawal (d) An asset

Question #3 Which of the following statements is false? (a) A Trial Balance is a list of all accounts with their balances (b) A Trial Balance is the same as a Balance Sheet (c) A Trial Balance provides a check in the equality of debits and credits (d) A Trial Balance may be taken at any time the postings are up to day

Question #4 The most liquid of all assets is… (a) Inventory (b) Cash (c) Marketable Securities (d) Accounts Receivable

Question #5 Which of the following accounts is classified as a short term financial asset? (a) Office Supplies (b) Accounts Receivable (c) Equipment (d) Prepaid Insurance

Go back to… Question 1 Question 2 Question 3 Question 4 Question 5

Now move on to… Question 2 Question 3 Question 4 Question 5

… and now you have completed the entire quiz on the basics of accounting. Congratulations on a job well done!