Introduction To Accounting Quiz

Introduction to Accounting

10 questions in 10 minutes

Pass Score 70%

The questions change when you repeat the exam

1 / 10

Performing services on account will have the following effects on the components of the basic accounting equation :

increase assets and decrease owner’s equity

increase assets and increase owner’s equity

increase assets and increase liabilities

increase liabilities and increase owner’s equity

2 / 10

Which of the following statements about users of accounting information isincorrect?

Taxing authorities are external users

Management is an internal user

Present creditors are external users

Regulatory authorities are internal users

3 / 10

Which of the following statements about basic assumptions iscorrect?

Partnerships are not economic entities

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

4 / 10

Net income will result during a time period when :

assets exceed liabilities

expenses exceed revenues

assets exceed revenues

revenues exceed expenses

5 / 10

Which of the following events isnotrecorded in the accounting records ?

The owner withdraws cash for personal use

A cash investment is made into the business

An employee is terminated

Equipment is purchased on account

6 / 10

The three types of business entities are :

proprietorships, small businesses, and partnerships

fnancial, manufacturing, and service companies

proprietorships, partnerships, and large businesses

proprietorships, partnerships, and corporations

7 / 10

Services performed by a public accountant include :

auditing, budgeting, and management consulting

auditing, taxation, and management consulting

internal auditing, budgeting, and management consulting

auditing, budgeting, and cost accounting

8 / 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

decreased $40,000

increased $40,000

9 / 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 ?

$1,000

$2,000

$1,500

$2,500

10 / 10

The historical cost principle states that :

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

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

assets should be recorded at their cost

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

Your score is

Introduction to Accounting quiz

10 questions in 10 minutes

Pass Score 70%

The questions change when you repeat the exam

Question topics

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10 questions in 10 minutes

Pass Score 70%

The questions change when you repeat the exam

Question topics

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