All of these questions and exercises will help you prepare very well for your tests and exams. There are hundreds of questions posted all around this website. If you’re looking for a question on a specific accounting topic and didn’t find it above, use this site search bar. It’ll help you find the question you’re looking for, or at least something close.
Accounting Quizzes
Our Flashcards will provide you with crystal-clear accounting definitions so you can master complex terminology faster and easier. All 500+ total flashcards are available in both digital and printable format. Received $150,000 cash from investors for ownership in the company. Depreciation is part of this question but you actually don’t need to know depreciation well at all to work this out.
Income Statement Multiple-Choice Quiz
With more than 25 years of teaching experience, Harold brings accounting to life by combining theory with real-world examples and stories. Debits represent cash received and credits represent cash paid, the balance is the difference in what was received and what was paid, which gives you what you now have. Each asset, liability, owner’s equity, revenue, and expense account gets a “T” account. It is called a “T” account because you draw a T first.
More Accounting Equation Exercises
Provided services to customers for the amount of $19,000, the customers will pay in 30 days. Paid $7,000 cash and agreed to pay the balance in 6 months. This is a nice little question on the sale and purchase of fixed (or non-current) assets.
- Whether you’re just learning or you want to refresh your skills, we think this guide will be a great assist on your bookkeeping journey.
- For the intro to accounting student or small business owner.
- Our real-world business forms include helpful instructions and filled-in examples that are designed to help you understand accounting in yet another way.
- It is called a “T” account because you draw a T first.
- This helpful, relevant, and easy-to-read study resource reflects many years of teaching and business consulting.
- C. For each of the following accounts, indicate whether it is an Asset, Liability, Income, or Expense.
Learning debits and credits for example can be an unnecessary roadblock. When students start working with me, we focus on solving accounting practice questions. These questions change how you think about accounting and change your approach to answering the questions you’ll see on your accounting tests and quizzes.
Accounting Topics
Make a “T” account for the cash account, post the journal entry amounts in the T account, and balance the cash account. A current asset representing the cost of supplies on hand at a point in time. The account is usually listed on the balance sheet after the Inventory account. A liability account that reports amounts received in advance of providing goods or services. When the goods or services are provided, this account balance is decreased and a revenue account is increased.
Purchased equipment costing $30,000 by paying $18,000 cash down and agreeing to pay the balance in 2 years. Rented warehouse space, $5,000 was paid for this month and $10,000 was paid for the following 2 months. Sold $15,000 of inventory on hsa tax information for your employees account (you have not been paid yet), sales price of $27,500. Purchased inventory to be sold to customers, $45,000 on account. For your convenience, difficulty levels and time limits are stated at the beginning of each of these exercises.
Don’t worry about getting the right answer, focus on understanding how to solve the question. Just like your homework problems, it’s important to understand the “why” behind the answer, even if you answer the question correctly. This is a great exercise for testing your understanding of the different accounts that are affected by some basic transactions. Note that this is a beginner exercise and does not cover a trading business (purchase and sale of goods). The first part of the solution contains just the names of the accounts, while the optional second part shows the journal entries.
Debits & Credits are the heart of the accounting system. “The workbook is a great review for me of the classes I took in College.”
Learn accounting fundamentals from financial statements to business structure. Receive instant access to our entire collection of premium materials, including our 1,800+ test questions. Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory accounting. A quick and thorough overview of 30 key managerial and cost accounting topics. This helpful, relevant, and easy-to-read study resource reflects many years of teaching and business consulting. Our Explanations simplify the most important accounting topics in a way that’s clear, straight-to-the-point, and easy to understand.