General Accounting Exam 1

Accounting is often referred to as the language of

• Business

• Mathematics

• Science

• Art

Funds taken from the business by the owner for personal use are called:

• Withdrawals

• Investments

• Deposits

• Expenses

The form of a business organization that is not affected by the withdrawal or death of an owner is the:

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

Amounts that a business must pay in the future are known as:

• assets

• equity

• liabilities

• revenue

The results of the accounting process are summarized in periodic reports called:

• financial statements

• accounting records

• tax returns

• budget reports

The rent paid for FUTURE months is a(n):

• Liability

• Expense

• Asset

• Equity

Owner withdrawals are reported on which financial statement?

• Income Statement

• Balance Sheet

• Statement of Owner's Equity

• Cash Flow Statement

The account used to record amounts that are owed for goods or services purchased on credit is known as:

• Accounts Receivable

• Accounts Payable

• Inventory

• Cash Equivalents

The account Andrew Simpson, Capital, would appear on both the Statement of Owner’s Equity and the:

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Trial Balance

What is the order in which accounts are listed on the trial balance?

• liabilities, assets, owner's equity, revenues, expenses

• assets, liabilities, revenues, owner's equity, expenses

• assets, liabilities, owner's equity, revenues, expenses

• expenses, revenues, owner's equity, assets, liabilities