Introduction to Accounting quiz

Financial Accounting Quiz

On Feb 10, 2025

/10

Introduction to Accounting

10 questions in 10 minutes

Pass Score 70%

The questions change when you repeat the exam

1 / 10

Services performed by a public accountant include :

internal auditing, budgeting, and management consulting

auditing, taxation, and management consulting

auditing, budgeting, and cost accounting

auditing, budgeting, and management consulting

2 / 10

The three types of business entities are :

fnancial, manufacturing, and service companies

proprietorships, small businesses, and partnerships

proprietorships, partnerships, and large businesses

proprietorships, partnerships, and corporations

3 / 10

During 2023, the Company’s assets decreased $50,000 and its liabilities decreased $90,000. Its owner’s equity therefore :

increased $40,000

decreased $140,000

decreased $40,000

increased $140,000

4 / 10

As of December 31, 2023, the Company has assets of $3,500 and owner’s equity of $2,000. What are the liabilities for the Company as of December 31, 2023 ?

$2,500

$1,500

$2,000

$1,000

5 / 10

Which of the following statements about basic assumptions is correct ?

Basic assumptions are the same as accounting principles

The monetary unit assumption enables accounting to measure employee morale

The economic entity assumption states that there should be a particular unit of accountability

Partnerships are not economic entities

6 / 10

Which of the following statements is false ?

An income statement presents the revenues, expenses, changes in owner’s equity, and resulting net income or net loss for a specif c period of time

An owner’s equity statement summarizes the changes in owner’s equity for a specif c period of time

A balance sheet reports the assets, liabilities, and owner’s equity at a specifc date

A statement of cash ﬂ ows summarizes information about the cash inﬂ ows (receipts) and outﬂ ows (payments) for a specif c period of time

7 / 10

On the last day of the period, the Company buys a $900 machine on credit. This transaction will affect the:

balance sheet only

income statement only

income statement, owner’s equity statement, and balance sheet

income statement and owner’s equity statement only

8 / 10

Payment of an account payable affects the components of the accounting equation in the following way :

Decreases owner’s equity and decreases liabilities

Increases assets and decreases liabilities

Decreases assets and increases owner’s equity

Decreases assets and decreases liabilities

9 / 10

Net income will result during a time period when :

revenues exceed expenses

assets exceed liabilities

expenses exceed revenues

assets exceed revenues

10 / 10

Which of the following statements about users of accounting information is incorrect ?

Management is an internal user

Taxing authorities are external users

Present creditors are external users

Regulatory authorities are internal users

Your score is

Question topics

The Basic Accounting Equation : Assets, Liabilities, Owner’s equity

Financial Statements: Balance sheet, Income statement, Statement of cash, Owner’s equity statement.

users and uses of accounting: Internal users ,External users

monetary unit assumption and the economic entity assumption