Accounting Quiz

What type of business buys finished products and resells them to individuals or other businesses?

• Cash in service business

• merchandising business

• manufacturing business

• none of the above

A business owned and operated by two or more persons is called an

• sole proprietorship

• partnership

• corporation

• service business

The accounting equation states

• Assets equal liabilities plus owner's equity

• Assets equal liabilities

• Assets equal owner's equity

• none of the above

The total amount of money owed to a business's creditors is called

• Assets

• Accounts Payable

• Accounts Receivable

• Owner's Equity

When an owner takes cash or other assets from the business for personal use, the transaction is called a(n)

• Accounts Payable transaction

• Accounts Receivable transaction

• Withdrawal

• Expense

The simplest and easiest type of business to start is a

• corporation

• not-for-profit organization

• partnership

• sole proprietorship

Prices paid for goods or services used to operate the business are referred to as

• assets

• liabilities

• revenue

• expenses

Income earned from the sale of goods or services is called

• assets

• liabilities

• revenue

• expenses

The purchase of a desk on account will increase Office Furniture and will also increase ________.

• Cash in Bank

• Accounts Payable

• Accounts Receivable

• Marie Krabish, Capital

The amount entered on the left side of the T account is the

• credit

• debit