Accounting Self-Assessment Quiz

Name:_________________________ Period:____ Date:_________ Glencoe Accounting (First-Year Course) Chapter 9, Section 3

1.	The basic accounting equation is
		assets + liabilities = owner`s equity
		revenue - expenses = owner`s equity
		assets = liabilities + owner`s equity
		revenue + assets + owner`s equity

2.	The return on sales ratio is determined by dividing
		sales by net income
		current assets by current liabilities
		cash and receivables by current liabilities
		net income by sales

3.	The accounts reported on the balance sheet are
		permanent accounts
		temporary capital accounts
		only the assets
		owner`s equity accounts

4.	The balance sheet reports the balances
		in asset and liability accounts
		in revenue accounts and owner`s equity
		in asset and revenue accounts
		in asset, liability and owner`s equity accounts

5.	The quick ratio is determined by dividing
		current assets by current liabilities
		cash and receivables by current liabilities
		net income by sales
		return on sales by current ratio

6.	The comparison of two amounts on a financial statement and the evaluation of the relationship between theses amounts is called
		current assets
		current liabilities
		ratio analysis
		income analysis

7.	The current ratio is determined by dividing
		current assets by current liabilities
		cash and receivables by current liabilities
		net income by sales
		income by expense

8.	The ability of a company to pay its current debts as they become due can be measured by
		a yard stick
		a liquidity ratio
		current assets
		the return on sales