Bookkeeping Accounts Quiz
Test your knowledge on the core types of bookkeeping accounts!
1. Which type of account represents everything of value that a business owns or controls?
Liability
Asset
Equity
Expense
2. Accounts Receivable (money owed to the business by clients) falls under which classification?
Asset
Liability
Revenue
Equity
3. What type of account is Accounts Payable?
Asset
Expense
Liability
Equity
4. Which of the following is the standard formula for the fundamental Accounting Equation?
Assets + Liabilities = Equity
Assets = Liabilities - Equity
Assets = Liabilities + Equity
Revenue - Expenses = Assets
5. Money spent on daily operations like rent, utilities, and advertising to help generate revenue is a/an:
Liability
Draw
Asset
Expense
6. Owner's Equity can best be described as:
The total amount of cash currently in the bank.
The net worth of the business belonging to the owners after subtracting liabilities from assets.
Total sales earned during a specific period.
The total amount of debt owed to suppliers.
7. When a company fulfills a service or sells a product to a customer, the money earned is classified as:
Revenue / Income
Equity
Asset
Liability
8. How is an "Owner's Draw" account classified within the general bookkeeping structure?
It is treated as a regular business Expense.
It is a sub-type of Equity (specifically a Contra-Equity account).
It is a current Liability.
It is classified as an Asset.
9. Why is an Owner's Draw NOT listed on the Income Statement as an expense?
Because it is a direct distribution of business profits to the owner, not a cost to generate revenue.
Because it represents a loan that the owner intends to pay back.
Because it counts as a regular asset instead.
It actually is listed on the Income Statement.
10. In a corporation, what account replaces the "Owner's Draw" account to track distributions paid out to shareholders?
Retained Earnings
Corporate Expense
Accounts Payable
Dividends Paid
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