Name: ______________________

Date: __________________

QUIZ ON THE INTR ODUCTION TO ACCOUNTING

1. An asset is
a. Something owed
b. Something owned
c. Investment in the business
d. Business Net worth
2. A liability is
a. Something owed
b. Something owned
c. Investment in the business
d. Business Net worth
3. Another word for capital is
a. Investment
b. Net Worth
c. Owners Equity
d. All of the above
4. Cash is a (n)
a. Asset
b. Liability
c. Capital
d. None of the above
5. Equipment is a (n)
a. Asset
b. Liability
c. Capital
d. None of the above
6. The accounting equation is
a. Assets + Liabilities = Capital
b. Assets = Liabilities + Capital
c. Liabilities Capital = Assets
d. None of the above
7. A beginning business has a cash balance of $5,500. They owe no money. What is their
investment in the business?
a. 0
b. $2,250
c. $5,500
d. None of the above
8. Which business is more likely to get a bank loan?
a. Business A: Assets $7,000; Liabilities $6,500
b. Business B: Assets $9,200; Liabilities $87,000
c. Business C: Assets $5,100; Liabilities $100
d. Business D: Assets $450; Liabilities $150

Name: ______________________

Date: __________________

QUIZ ON THE INTR ODUCTION TO ACCOUNTING KEY

1

An asset is
a. Something owed
b. Something owned
c. Investment in the business
d. Business Net worth

A liability is
a. Something owed
b. Something owned
c. Investment in the business
d. Business Net worth

Another word for capital is

a. Investment
b. Net Worth
c. Owners Equity
d. All of the above

Cash is a (n)
a. Asset
b. Liability
c. Capital
d. None of the above

Equipment is a (n)
a. Asset
b. Liability
c. Capital
d. None of the above

The accounting equation is

a. Assets + Liabilities = Capital
b. Assets = Liabilities + Capital
c. Liabilities Capital = Assets
d. None of the above

A beginning business has a cash balance of $5,500. They owe no money. What is their
investment in the business?
a. 0
b. $2,250
c. $5,500
d. None of the above

Which business is more likely to get a bank loan?

a. Business A: Assets $7,000; Liabilities $6,500
b. Business B: Assets $9,200; Liabilities $87,000
c. Business C: Assets $5,100; Liabilities $100
d. Business D: Assets $450; Liabilities $150

Name: ____________________Date: ____________________

OWE AND OWN WORKSHEET
What I own:

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What I owe (or a few things

a family probably owes):

________________
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