Bremen High School District #228
Accounting for the Entrepreneur
Mid - Growth Assessment
Gregory Slade
2013
1. Planning, recording, analyzing, and interpreting financial information is called (I.c.)
a. organizing.
b. accounting.
c. profiting.
d. formatting.
2. Financial reports that summarize the financial condition and operations of a business are called
financial: (II, III)
a. summaries.
b. records.
c. statements.
d. outputs.
3. A business that performs an activity for a fee is called a(n): (I.c)
a. proprietorship.
b. corporation.
c. service business.
d. online business.
4. A business owned by one person is called a: (I.c.)
a. proprietorship.
b. corporation.
c. partnership.
d. common-law business
5. Anything of value that is owned is called a(n): (I.c, II)
a. expense.
b. asset.
c. liability.
d. possession.
6. The amount remaining after the value of all liabilities is subtracted from the value of all assets is
called: (I.c, II)
a. profit.
b. loss.
c. owner's equity.
d. account balance.
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7. A business activity that changes assets, liabilities, or owner's equity is called a: (I.c,)
a. deposit.
b. withdrawal.
c. deal.
d. transaction.
8. The account used to summarize the owner's equity in a business is called: (I.c, II, III)
a. capital.
b. a record.
c. a transaction.
d. an account balance.
9. A record summarizing all the information pertaining to a single item in the accounting equation is
known as a(n): (I.c)
a. transaction.
b. balance.
c. record.
d. account.
10. An accounting device used to analyze transactions is called a: (I.c)
a. T account.
b. calculator.
c. record.
d. ledger.
11. The side of the account that is increased is called the: (I.c)
a. debit.
b. credit.
c. normal balance.
d. average balance.
12. A list of accounts used by a business is called a(n): (I.c)
a. list.
b. chart of accounts.
c. accounting record.
d. database.
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13. If one account is increased, another account on the same side of the equation: (I.c,)
a. must also increase.
b. must stay the same.
c. must be decreased.
d. is moved to the other side of the equation.
14. A business paid cash for supplies. How is this transaction recorded? (I.c, V)
a. debit cash, debit supplies
b. credit cash, credit supplies
c. debit cash, credit supplies
d. credit cash, debit supplies
15. A business sold services on account. How is this transaction recorded? (I.c, V)
a. debit accounts receivable, debit sales
b. credit accounts receivable, credit sales
c. debit accounts receivable, credit sales
d. credit accounts receivable, debit sales
16. A business bought supplies on account. How is this transaction recorded? (I.c, V)
a. debit supplies, credit cash
b. debit supplies, credit accounts payable
c. credit supplies, debit cash
d. credit supplies, debit accounts payable
17. A business paid cash for insurance. How is this transaction recorded? (I.c, V)
a. credit cash, debit insurance
b. debit cash, credit insurance
c. credit accounts payable, debit insurance
d. debit accounts payable, credit insurance
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18. A business received cash on account. How is this transaction recorded? (I.c, V)
a. debit cash, credit accounts receivable
b. debit cash, credit accounts payable
c. credit cash, debit accounts receivable
d. credit cash, debit accounts payable
19. A form for recording transactions in chronological order is called a(n): (I.c, II)
a. statement.
b. journal.
c. source document.
d. account.
20. A journal amount column headed with an account title is called a(n): (I.c, V)
a. special amount column.
b. general amount column.
c. account title column.
d. source document column.
21. Transactions are recorded in a journal in: (I.c, V)
a. alphabetical order.
b. chronological order.
c. order of importance.
d. amounts least to greatest.
22. A business paper from which information is obtained for a journal entry is called a(n): (I.c, III)
a. source document.
b. receipt.
c. invoice.
d. check.
23. A form describing the goods or services sold, the quantity, and the price is called a(n): (I.c, III)
a. memorandum.
b. proof of purchase.
c. invoice.
d. receipt.
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24. A business form ordering a bank to pay cash from a bank account is called a(n): (I.c, III)
a. order.
b. affidavit.
c. lien.
d. check.
25. A list of account titles and numbers showing the location of each account in a ledger is known as
a(n): (I.c)
a. chart of accounts.
b. account summary.
c. T account form.
d. balance-ruled account form.
26. A group of accounts is called a(n): (I.c,)
a. ledger.
b. group.
c. account summary.
d. chart of accounts.
27. Transferring information from a journal entry to a ledger account is called: (I.c, V)
a. posting.
b. transferring.
c. copying.
d. summarizing.
28. A bank account from which payments can be ordered by a depositor is called a: (I.c, III)
a. statement.
b. checking account.
c. depositor's account.
d. savings account.
29. An endorsement is: (I.c)
a. a signature on the back of a check transferring ownership.
b. a stamp on the back of a check transferring ownership.
c. confined to a limited amount of space that is indicated on the back of a check.
d. All of the answers are correct.
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30. When you sign only your name to the back of a check it is known as a: (i.c)
a. blank endorsement.
b. special endorsement.
c. restrictive endorsement.
d. None of the answers are correct.
31. A report of deposits, withdrawals, and bank balances sent to a depositor by a bank is called a:(I.c, III)
a. bank reconciliation.
b. bank statement.
c. bank record.
d. bank adjustments.
32. A columnar accounting form used to summarize the general ledger information needed to prepare
financial statements is called a: (II, V)
a. column sheet.
b. summary sheet.
c. work sheet.
d. ledger sheet.
33. The length of time for which a business summarizes and reports financial information is called a(n):
(III, V)
a. annual reporting period.
b. fiscal period.
c. accounting period.
d. financial period
34. A proof of the equality of debits and credits in a general ledger is called the: (I.c, II, III, V)
a. trial balance.
b. proof.
c. statement.
d. balance sheet.
35. If total expenses exceed ________, a net loss is reported on an income statement. (II, III )
a. net expenses
b. profit
c. total revenue
d. net income
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36. The difference between total revenue and total expenses is called: (II, III )
a. owner drawing.
b. net income or net loss.
c. total assets.
d. owner capital.
37. On a balance sheet, if total assets are $15,000.00 and total liabilities are $10,000.00, total owner's
equity is: (II, III)
a. $25,000.00
b. $ 7,500.00
c. $ 2,500.00
d. $ 5,000.00
38. Journal entries recorded to update general ledger accounts at the end of a fiscal period are called:
(II, V)
a. recorded entries.
b. journal adjustments.
c. adjusting entries.
d. updated entries.
39. The series of accounting activities included in recording financial information for a fiscal period is
called a(n): (II, V)
a. financial cycle.
b. accounting cycle.
c. accounting series.
d. accounting period.
40. The money paid for employee services is called: (I.c)
a. benefits.
b. "perks."
c. a time card.
d. a paycheck.
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41. The period covered by a salary payment is called a(n): (I.c, VII)
a. salary period.
b. biweekly.
c. pay period.
d. earnings period.
42. The total pay due for a pay period before deductions is called: (I.c, VII)
a. net pay.
b. payroll.
c. total earnings.
d. a liability.
43. Taxes based on the payroll of a business are called: (I.c, VII)
a. tax deductions.
b. payroll taxes.
c. payroll expense.
d. tax liability.
44. A deduction from total earnings for each person legally supported by a taxpayer, including the
employee, is called (I.c, VII)
a. payroll deduction.
b. dependent deduction.
c. withholding allowance.
d. withholding deduction.
45. The maximum amount of earnings on which a tax is calculated is called: (I.c, VII)
a. a tax base.
b. earned maximum.
c. earned income limit.
d. the tax max.
46. The total earnings subject to unemployment tax is referred to as: (I.c, VII)
a. total employee earnings.
b. unemployment taxable earnings.
c. accumulated earnings.
d. federal unemployment earnings
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47. A state tax used to pay benefits to unemployed workers is called: (I.c, VII)
a. state workers compensation.
b. state holdover tax.
c. state unemployment tax.
d. employee contribution tax.
48. For a monthly schedule depositor, payroll taxes are paid to the federal government: (I.c, VII)
a. by the end of the current month.
b. by the 15th of the following month.
c. by the end of the following month.
d. by the end of the quarter.
49. Which one of the following questions is not asked every time a transaction is analyzed into its debit
and credit parts? (I.c, VII)
a. Which accounts are affected?
b. How is each account classified?
c. How is each account changed?
d. What is the new balance of each account?
50. The amounts that are posted differently from a journal to a general ledger are from which column?
(IC)
a.
General Credit
b.
Sales Credit
c.
Cash Debit
d.
Cash Credit
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Accounting 1
Pre-Assessment Test
Accounting Standard I.C
Instructions: Label the debit and credit sides, indicate the normal balance of each account, and label
with arrows the increase and decrease sides.
Cash
Supplies
Accounts Payable
Prepaid Insurance
Capital
Expenses
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Accounts Receivable
Drawing
Sales
Accounting 1
Pre-Assessment Test
Business Standard I.C
1. Make a chart of accounts using the following accounts
Business Standard I.C, and V
Account
Cash
Prepaid Insurance
Supplies
Accounts Receivable Lincoln School
Accounts Payable Staples Supplies
Sales
John Smith, Drawing
John Smith, Capital
Repair Expense
Advertising Expense
2. Journalize the following transactions in the general journal
Business Standard I.C , and IV, and V
May 1
Received cash from owner as an investment, $17,000.00 R1
3
Paid cash for insurance, $960.00 C1
4
Received cash from sales, $185.00 T13
7
Sold services on account to Lincoln School, $150.00 S1
10 Bought supplies on account from Staples Supplies, $800.00 M1
14 Received cash on account from Lincoln School, $100.00. R2
18 Paid cash for repairs, $125.00 C2
21 Paid cash to Staple Supplies, $100.00 C3
22 Paid cash for advertising, $65.00 C4
3. Post the separate amounts from the journal to the general ledger and
then post the column totals of the journal to the general ledger.
I.C and V
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ACCOUNT
NO.
ACCOUNT
POST.
DATE
ITEM
REF.
BALANCE
DEBIT
CREDIT
POST.
ITEM
REF.
BALANCE
DEBIT
CREDIT
POST.
ITEM
REF.
CREDIT
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
ACCOUNT
NO.
ACCOUNT
POST.
DATE
DEBIT
ACCOUNT
NO.
ACCOUNT
DATE
CREDIT
ACCOUNT
NO.
ACCOUNT
DATE
DEBIT
ITEM
REF.
BALANCE
DEBIT
CREDIT
DEBIT
CREDIT
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