Accounting Worksheet
Name: _________________________________
Date: __________________________________
Part 1: Benefits and Disadvantages of Computerized Accounting Records
Identify the following as an advantage or disadvantage of computerized accounting
records.
Items Advantage or Disadvantage
1. Cost of training
2. Improved accuracy
3. Aged receivable analysis
4. Automatic processing and updating
5. Computer virus
6. Technical support
7. Management report
8. Increased speed of processing
9. Reduced workload for staff
10. Cost of computer installation
11. Security breach (hacking)
12. Frequency of software upgrades
Part 2: Accounting Concepts
Identify the accounting concept for each situation (1-5).
1. The owner of a business recently introduced a policy of providing for doubtful
debts. ______________________________
2. A receivable account was written off as bad debt as soon as it became clear that
no money would be received. ______________________________
3. The owner of a business paid for a friend’s birthday party from the business’s
bank account. The account’s clerk correctly recorded the amount in the drawings
account in the business’s general ledger. ______________________________
4. The owner of a business considered switching from using the reducing balance
method of depreciation to the straight-line method. The owner recommended
using the straight-line method so that one year’s accounts can be compared with
another year’s accounts on the same basis. ______________________________
5. When preparing the final accounts, it is important to consider not only what cash
has been paid for an expense but also what should have been paid for the
expense for that period. ______________________________
Part 3: Accounting Terms and Concepts
Use a term or phrase that best describes the situation stated.
Situation Term
1. State the term that is used to describe persons who
have an interest in an organization.
2. Identify 2 internal users of financial information.
3. This is the record-keeping aspect of accounting.
4. Investors may lose more than the investment if the
organization fails.
5. What happens at the third stage of the accounting
cycle?
6. Several employees are employed in a large
organization owned by a single person. Identify this
type of business.
7. Shareholders cannot sell their shares in the company
on the stock exchange. Which business organization is
this?
8. Three brothers operating a business where the action
of one brother is binding on the other two brothers.
9. Receipts, invoices, and vouchers are all examples of
what?
10. Another name for the sales day book.
11. This checks the arithmetical accuracy of the double
entry.
12. What document provides proof of a transaction?
13. These persons are part owners of the business.
14. Information from step one of the cycle is recorded
here, what is the process called?
15. These are the guidelines for recording accounting
information.
16. Explain the concept of limited liability.
Part 4: Ethics in Accounting
Choose True or False for each statement.
1. A professional accountant must be honest in all accounting and professional
relationships.
True / False
2. Morals governing human behaviour are also known as ethics.
True / False
3. An ethical dilemma can never affect the decision-making of an accountant.
True / False
4. State one penalty for inappropriate application of accounting principles.
____________ (Fill in the blank)
5. When a professional's power overrides their professional judgment, it is called
____________. (Fill in the blank)
Part 5: Accounting Cycle, Types of Businesses, Financial Documents, and
Technology in Accounting
1. What is the first step in the accounting cycle?
a. Journalizing
b. Posting
c. Analyzing Transactions from Source Documents
d. Preparing Financial Statements
2. Which document is referred to as the source of information for recording
transactions?
a. Financial Statement
b. Ledger
c. Source Document
d. Cash Flow Statement
3. Which step involves preparing a summary of all similar information in a format
called the Trial Balance?
a. Posting to the Ledger
b. Preparing Financial Statements
c. Recording Transactions in Journals
d. Preparing a Trial Balance
4. What is the importance of the accounting cycle in business?
a. It ensures accurate financial records and reporting.
b. It simplifies tax calculations.
c. It provides a platform for business marketing.
d. It tracks inventory only.
5. Which of the following businesses has unlimited liability?
a. Corporation
b. Cooperative
c. Sole Trader
d. Non-Profit Organization
6. What is the main advantage of a partnership over a sole proprietorship?
a. Greater access to capital
b. Simpler decision-making process
c. Lower tax rates
d. Unlimited liability for debts
7. Which of the following businesses is known for providing services to its members
rather than focusing on profits?
a. Corporation
b. Sole Trader
c. Cooperative
d. Partnership
8. What is a key feature of a non-profit organization?
a. Unlimited profits distributed to shareholders
b. Funds are allocated for specific purposes
c. No need for financial statements
d. Owned by a single individual
9. Which financial document shows the value of what the business owns (assets)
and what it owes (liabilities)?
a. Income Statement
b. Balance Sheet
c. Cash Flow Statement
d. Financial Journal
10. The Income Statement shows:
a. Sources of income and expenses over a period
b. A company’s cash inflow and outflow
c. The financial position at a specific point in time
d. The owner's equity
11. Which of the following is NOT typically part of a corporation's financial
statements?
a. Income Statement
b. Shareholders' Equity Statement
c. Members' Equity
d. Cash Flow Statement
12. What is the purpose of a Cash Flow Statement?
a. To show a business’s total revenue
b. To display the company's assets and liabilities
c. To track the sources and uses of cash
d. To outline the profit or loss for the year
