Introduction to Accounting Methods
This worksheet introduces Grade 9 students to fundamental accounting methods, including assets, liabilities, equity, and basic financial statements.
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Introduction to Accounting Methods
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Read each question carefully and answer to the best of your ability. This worksheet covers basic concepts of accounting methods.
1. Which of the following best describes an asset?
Money owed to others
A resource controlled by the business that is expected to provide future economic benefits
The owner's claim on the assets of the business
Expenses incurred during a period
2. Which of the following is considered a liability?
Cash in hand
Accounts Payable
Equipment
Retained Earnings
3. The accounting equation states that Assets = Liabilities + .
4. An statement reports a company's revenues and expenses over a period of time.
5. A balance sheet shows the financial position of a company at a specific point in time.
True
False
6. Revenue is always recognized when cash is received, regardless of when the service was performed or product delivered.
True
False
7. Briefly explain the difference between current assets and non-current assets.
8. Identify the Assets, Liabilities, and Equity from the following list of accounts for a small business:
Cash
Accounts Payable
Owner's Capital
Bank Loan
Equipment
Inventory
Assets:
Liabilities:
Equity:
9. Use the words below to complete the sentences.
a. The total amount of money a business earns from its sales of goods or services is called .
b. Costs incurred in the process of earning revenue are known as .
c. When exceed , a business generates a profit.