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Exercise: Name: ID Number

This document contains an exercise with 20 multiple choice questions related to accounting and financial concepts. The questions cover topics like accounting jobs, salaries, the basic accounting equation, financial statements, bookkeeping principles, raising capital, accounting errors, and business financial decisions. The reader is instructed to choose the correct answer for each question and bold it in red.

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P.jevelson
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23 views

Exercise: Name: ID Number

This document contains an exercise with 20 multiple choice questions related to accounting and financial concepts. The questions cover topics like accounting jobs, salaries, the basic accounting equation, financial statements, bookkeeping principles, raising capital, accounting errors, and business financial decisions. The reader is instructed to choose the correct answer for each question and bold it in red.

Uploaded by

P.jevelson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name :

ID Number :

Exercise
Look at the
following
sentences and
choose the
correct
answer.
Sometimes,
there’s more
than one
correct
answer.
BOLD RED
TO YOUR
ANSWER.

1. They had to
hire a(n) ___
because Jane
was not
qualified to
produce all the
documents for
the audit in
June.
A. auditor B.
accountant
C. bookkeeper

2./3. Her
___(2.) salary
at her new
workplace was
higher than her
___(3.) salary
in the old one,
so she was
much happier
here.
2. A. net B.
gross
3. A. net B.
gross

4./5./6. The
basic
accounting
equation is:
___(4.) =
___(5.) +
___(6.)
4. A. assets
B. liabilities
C. owner’s
equity
5. A. liabilities
B. owner’s
equity C.
assets
6. A. owner’s
equity B.
assets C.
liabilities

7./8. In order
to see what a
company’s
___(7.) is/are,
you need to
have a look at
the ___(8.)
and subtract
all the
expenses of
doing
business.
7. A. profit
B. capital C.
revenues
8. A. revenues
B. profit
C. liabilities

9. The ___ is
an important
accounting
document
showing a
company’s
assets,
liabilities and
the owner’s
equity.
A. cash flow
statement B.
balance sheet
C. income
statement
10./11./12. In
___(10.), you
need to record
___(11.) on
the left side
and ___(12.)
on the right
side.
10. A. double
entry
bookkeeping
B. single entry
bookkeeping
11. A. debits
B. credits
12. A. credits
B. debits

13. He was
hoping to be
able to raise
enough ___ to
set up his own
business in
five years’
time.
A. assets B.
capital C.
equity

14. As she
was
calculating the
company’s
liabilities, she
realized she
forgot to
include the
___.
A. accounts
payable B.
accounts
receivable

15. 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.
A.
bookkeeping
B. accounting
C. creative
accounting

16. 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.
A. chartered
accountant
B.
shareholder
C. investor

17. The auditor


was looking at
the financial
statements
that the
company
presented him
when he
realized he
was actually
interested in a
different ___.
He then had to
ask for a
different set of
financial
statements.
A. income
statement B.
payroll C.
accounting
period

18. She was


considering
giving up
working as an
accountant for
that company
and becoming
a self-
employed
freelancer
because the
___ she had to
pay was lower.
She also had
the expertise
to file her own
tax return,
which was an
additional
advantage.
A. income tax
B. Value
Added Tax

19. The idea of


becoming a
shareholder
seemed really
bad now that
the ___ was
lower than in
any other
previous year.
A. share price
B. return on
investment

20. Their ___


was too high
during the past
few months, so
they have
been thinking
of either not
giving their
employees any
bonuses this
year or
investing less
in advertising.
A. overhead
B.
appreciation
C.
depreciation

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