Introduction to Accounting quiz

Financial Accounting Quiz

On Aug 26, 2024

/10

Introduction to Accounting

10 questions in 10 minutes

Pass Score 70%

The questions change when you repeat the exam

1 / 10

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

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

income statement and owner’s equity statement only

income statement only

balance sheet only

2 / 10

The historical cost principle states that :

assets should be initially recorded at cost and adjusted when the fair value changes

only transaction data capable of being expressed in terms of money be included in the accounting records

assets should be recorded at their cost

activities of an entity are to be kept separate and distinct from its owner

3 / 10

Which of the following events is not recorded in the accounting records ?

Equipment is purchased on account

An employee is terminated

The owner withdraws cash for personal use

A cash investment is made into the business

4 / 10

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

Increases assets and decreases liabilities

Decreases assets and decreases liabilities

Decreases owner’s equity and decreases liabilities

Decreases assets and increases owner’s equity

5 / 10

Net income will result during a time period when :

expenses exceed revenues

assets exceed revenues

assets exceed liabilities

revenues exceed expenses

6 / 10

The three types of business entities are :

fnancial, manufacturing, and service companies

proprietorships, partnerships, and corporations

proprietorships, small businesses, and partnerships

proprietorships, partnerships, and large businesses

7 / 10

Services performed by a public accountant include :

auditing, budgeting, and cost accounting

auditing, taxation, and management consulting

auditing, budgeting, and management consulting

internal auditing, budgeting, and management consulting

8 / 10

The financial statement that reports assets, liabilities, and owner’s equity is the :

owner’s equity statement

income statement

statement of cash ﬂows

balance sheet

9 / 10

Which of the following is not a step in the accounting process?

Verifcation

Communication

Recording

Identifcation

10 / 10

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

increased $140,000

decreased $140,000

increased $40,000

decreased $40,000

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