Fun Quiz

Match the following accounting vocabulary

• The decrease in the value of products or services a company offers.

• Depreciation

• Money that individuals and companies owe to the government, based on the income they make.

• Owner’s Equity

• A list of all a company’s employees and their salaries.

• Payroll

• A part of a company’s assets that the owner has. It’s calculated as assets minus liabilities.

• Overhead

• All the expenses a company needs to pay for, like the costs of advertising, labor, bills and taxes.

• Income Tax

They had to hire a(n) ​ (a)   because Jane was not qualified to produce all the documents for the audit in June.

• accountant
• auditor
• manager
• bookkeeper

As she was calculating the company’s liabilities, she realized she forgot to include the ___.

• accounts payable

• accounts receivable

• gross

• profit

In order to see what a company’s ​ ​ (a)   is/are, you need to have a look at the ​ (b)   and subtract all the expenses of doing business.

• profit
• revenues
• capital
• liabilities
• assets

Match the following

• accounting system in which each transaction is recorded as both credit & debit, an asset & liability

• Debit

• An amount of money that is left after taxes have been paid.

• Double Entry

• An entry that shows how much money a company receives. Credits are recorded on the right side of acc

• Credit

• An entry that shows what a company spends. Debits are recorded on the left side of an account.

• Net

In ​ ​ (a)   , you need to record ​ (b)   on the left side and ​ (c)   on the right side.

• double entry bookkeeping
• debits
• credits
• single entry bookkeeping

He was hoping to be able to raise enough ___ to set up his own business in five years’ time.

• assets

• capital

• equity

The ___ is an important accounting document showing a company’s assets, liabilities and the owner’s equity.

• cash flow statement

• balance sheet

• income statement

They wanted to resort to ___ in order to convince investors of their company’s high profitability, but then they realized that the auditors that worked for the investors would see right through it.

• bookkeeping

• accounting

• creative accounting

He had been trying to pass his exams in order to become a(n) ___, but in the end he gave up and decided to charge a higher fee for his bookkeeping services in order to make ends meet.

• chartered accountant

• shareholder

• investor