Encircle the correct answer;
TEST 1
1. Which of the following is considered a major account in accountancy?
a) Petty cash
b) Office supplies
c) Accounts payable
d) Advertising expenses
2. Which type of major account represents the money owed by a company to its suppliers?
a) Accounts receivable
b) Accounts payable
c) Cash in hand
d) Fixed assets
3. Which major account represents the money a company receives from its customers?
a) Advertising expenses
b) Accounts receivable
c) Office supplies
d) Cash in hand
4. Which major account includes the tangible assets that a company uses in its operations?
a) Fixed assets
b) Petty cash
c) Accounts payable
d) Office supplies
5. The major account "Accumulated Depreciation" is classified under which category?
a) Assets
b) Liabilities
c) Equity
d) Revenue
6. Which of the following is not a major account in accountancy?
a) Accounts receivable
b) Owner's equity
c) Advertising expenses
d) Cash in hand
7. Which major account represents the money invested by the owner(s) in the business?
a) Accounts payable
b) Owner's equity
c) Fixed assets
d) Petty cash
8. The major account "Sales Revenue" is classified under which category?
a) Assets
b) Liabilities
c) Equity
d) Revenue
9. Which type of major account represents the money a company owes to its employees?
a) Office supplies
b) Accounts payable
c) Petty cash
d) Advertising expenses
10. Which major account represents the money a company spends on promoting its products or services?
a) Accounts receivable
b) Advertising expenses
c) Cash in hand
d) Fixed assets
11. The major account "Retained Earnings" is classified under which category?
a) Assets
b) Liabilities
c) Equity
d) Revenue
12. Which of the following is not a major account in accountancy?
a) Accounts receivable
b) Accounts payable
c) Office supplies
d) Cash in hand
13. Which major account represents the money a company owes for its outstanding loans?
a) Accounts payable
b) Owner's equity
c) Fixed assets
d) Liabilities
14. The major account "Rent Expense" is classified under which category?
a) Assets
b) Liabilities
c) Equity
d) Expenses
15. Which major account represents the money a company owes for its unpaid taxes?
a) Accounts receivable
b) Owner's equity
c) Liabilities
d) Petty cash
16. Which type of major account represents the money a company receives in advance for its products or
services?
a) Advertising expenses
b) Accounts receivable
c) Cash in hand
d) Unearned revenue
17. The major account "Inventory" is classified under which category?
a) Assets
b) Liabilities
c) Equity
d) Expenses
18. Which major account represents the money a company owes for its utility bills?
a) Accounts payable
b) Office supplies
c) Cash in hand
d) Fixed assets
19. Which of the following is not a major account in accountancy?
a) Accounts receivable
b) Advertising expenses
c) Cash in hand
d) Sales revenue
20. The major account "Common Stock" is classified under which category?
a) Assets
b) Liabilities
c) Equity
d) Expenses
Test II
ENCIRCLE THE CORRECT ANSWER
1. Which of the following is classified as a current asset?
A. Buildings
B. Land
C. Accounts payable
D. Long-term investments
2. What type of account is Accounts Receivable?
A. Asset
B. Liability
C. Equity
D. Expense
3. Which account represents the money owed by a business to its suppliers?
A. Accounts payable
B. Accounts receivable
C. Prepaid expenses
D. Accumulated depreciation
4. What is the purpose of the Sales account?
A. To track the cost of goods sold
B. To record sales revenue
C. To track employee salaries
D. To record loan payments
5. Which account represents the owner's investment in the business?
A. Retained earnings
B. Accounts payable
C. Common stock
D. Accumulated depreciation
6. What type of account is Inventory?
A. Asset
B. Liability
C. Equity
D. Revenue
7. Which of the following is an example of a contra account?
A. Supplies
B. Utilities expense
C. Accumulated depreciation
D. Sales revenue
8. What type of account is Rent Expense?
A. Asset
B. Liability
C. Equity
D. Expense
9. Which account represents the money received in advance from customers?
A. Prepaid expenses
B. Accounts payable
C. Accounts receivable
D. Common stock
10. What is the purpose of the Depreciation Expense account?
A. To track the cost of goods sold
B. To record sales revenue
C. To track the use of assets over time
D. To record loan payments
11. What type of account is Prepaid Rent?
A. Asset
B. Liability
C. Equity
D. Revenue
12. Which account represents the accumulated net income of a business?
A. Retained earnings
B. Accounts payable
C. Common stock
D. Accumulated depreciation
13. What type of account is Accounts Payable?
A. Asset
B. Liability
C. Equity
D. Expense
14. Which of the following is an example of an expense account?
A. Utilities expense
B. Sales revenue
C. Common stock
D. Accumulated depreciation
15. What is the purpose of the Cost of Goods Sold account?
A. To track employee salaries
B. To record loan payments
C. To track the cost of goods produced
D. To record sales revenue
16. What type of account is Common Stock?
A. Asset
B. Liability
C. Equity
D. Expense
17. Which account represents the money owed by customers to a business?
A. Accounts payable
B. Accounts receivable
C. Prepaid expenses
D. Accumulated depreciation
18. What is the purpose of the Retained Earnings account?
A. To track the cost of goods sold
B. To record sales revenue
C. To track the accumulated net income of the business
D. To record loan payments
19. Which of the following is classified as a long-term liability?
A. Accounts payable
B. Notes payable (due in 3 years)
C. Accounts receivable
D. Prepaid expenses
20. What type of account is Utilities Expense?
A. Asset
B. Liability
C. Equity
D. Expense
