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Accounting for Non-Accountants Quiz 3

1. The accounting equation is listed as Assets = Liabilities + Owner’s Equity.

True
False

 

2. If you subtract the liabilities from the assets, you are left with the owner’s equity of the business.

True
False

 

3. The accounting equation should be listed as:

Assets = Liabilities + Owner’s Equity
Financial Accounting Standards (FASB)
Generally Accepted Accounting Principles (GAAP)
American Institute of Certified Public Accountants (AICPA)

 

4. Select the item(s) that is(are) considered a long-term asset:

Cash
Accounts receivable
Prepaid Insurance
None of the Above

 

5. Select the item(s) that is(are) considered a short-term asset:

Inventory
Cash
Accounts Receivable
All of the Above

6. Accounts receivable for Jeanette’s Clothing Store is listed as $50,595 on December 31, 2011. The percentage of estimated doubtful accounts is 10%. What is the allowance for doubtful accounts? (Note:Allowance for doubtful accounts is the amount that a business has estimated will not be collected from the customers.

$4,595.50
$10,595.50
$5,059.50
$5,959.05


Answers

Use the answers below to figure out your score, and see how well you understand the material of the first chapter. If you scored less than an 80% you should read over the chapter again before moving on.

Question 1: True
Question 2: True
Question 3: Assets = Liabilities + Owner’s Equity
Question 4: Prepaid Insurance
Question 5: All of the Above
Question 6: $5,059.50

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