ACCOUNTING EXERCISES FOR TEST

A. ANSWER THE FOLLOWING QUESTIONS WITH ACCURATE AND CONTENT BASED

INFORMATION.

1. Write 3 advantages for managing finances properly.

2. Describe in your own words why accounting can evaluate the efficiency of employees.

3. Can a person without training being a good accountant? Why?

B. MATCH the description of the stage of the cycle.

1. Recording of transactions _____ a. It’s the final balance with real incomes and
2. Journal _____ expenses.
3. Ledger _____ b. It consists in writing all the transactions without
4. Trial balance _____ receipts.
5. Adjust and close _____ c. It’s the balance already published.
6. Financial statement _____ d. It consists in gathering all the receipts to keep
records of the transactions.
e. It’s to write in an accounting book the incomes
and expenses of a period of time.
f. It’s the real income and expenses of a period of
time, and the budget for the rest.

C. CHOOSE the best option.

1. An asset is basically any item that will add ________________ to your business.:

a) An accounting entry c) Future value e) All of the above.

b) A debt d) None of the above.

2. Which of the following statements are true?

a) Debtors are people that owe your business money. c) Another name for debtors is accounts receivable.

b) Debtors refers to the value of debts to your business d) Debtors are assets for a business.

as a whole. e) All of the above.

3. You can recognize an item as an asset for your business if:

a) Your business owns or controls it. c) You can value it accurately.

b) It will bring your business benefits in the future. d) All of the above.
e) None of the above.

4. A liability is a debt that will result in _________ leaving the business at some point in the future.

a) Records of your liabilities c) Assets e) None of the above.

b) Owner's equity d) All of the above.

5. Which of the following statements are true?

a) A creditor is any business or person that you owe (apart from a loan or any similar long-term debts).

b) Suppliers, who you owe for products and services purchased on credit, would fall under creditors.

c) Creditors are also sometimes referred to as payables or accounts payable.

d) Creditors are short-term liabilities, as we usually expect to pay them over a period of a few months or less.

e) All of the above.

6. An example of a liability is:

a) A bank loan.

b) The tax authorities when you owe them money for d) A business credit card.

tax. e) All of the above.

c) The electricity company you owe for your monthly

electricity bill.

7. The owner’s equity is the owner’s share of ____________________.

a) The liabilities that need to be paid. d) None of the above.

b) The assets of a business. e) All of the above.

c) The accounting and related computer applications.

8. True or false: Owner's equity is the value of all the assets after deducting the value of assets needed to pay

liabilities.

a) True b) False

9. True or false: The basic accounting equation indicates how much of the assets of a business belong to, or are

owned, by whom.

a) True b) False

10. Employees can be considered as………….………………………… ( )