Accounting Assignment Questions

College Accounting Assignment
Questions
1. Revenues minus expenses equals __________.
2. Resources owned by a company (such as cash, accounts receivable,
vehicles) are reported on the balance sheet and are referred to as
__________.
3. The accrual basic of accounting recognizes revenues and expenses when:
A) Revenues are earned and expenses are paid
B) Revenues are received and expenses are incurred
C) Revenues are received and expenses are paid
D) Revenues are earned and expenses are incurred
4. Obligations (amounts owed) are reported on the balance sheet and are
referred to as __________.
5. Liabilities often have the word __________ in their account title.
6. If beginning capital was $25,000, ending capital is $37,000, and the
owner?s withdrawals were $23,000, the amount of net income or net loss
for the period was:
A) Net loss of $35,000
B) Net income of $35,000
C) Net income of $14,000
D) Net loss of $14,000
E) None of the options listed
7. In the accounting equation: A=L+E, what does E stand for?
A) Event
B) Equal
C) Everything
D) Equilibrum
E) Equity