Can You Pass This Test On Business Accounting?

10 Questions | Total Attempts: 115

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Can You Pass This Test On Business Accounting?

Business accounting us a field under accounting. If you own a business or work for a business as an accountant, then this quiz is definitely for you. It has the most pertinent questions we bet you won't be able to answer. Try it!


Questions and Answers
  • 1. 
    Assets are usually reported on the balance sheet at which amount?
    • A. 

      Cost 

    • B. 

      Current Market Value

    • C. 

      Expected Selling Price

    • D. 

      Selling price

  • 2. 
    Which word do liabilities often have in their account title?
    • A. 

      Profitable

    • B. 

      Payable 

    • C. 

      Risked

    • D. 

      Losing

  • 3. 
    What are obligations (amounts owed) reported on the balance sheet referred to as?
    • A. 

      Profits

    • B. 

      Losses

    • C. 

      Risks

    • D. 

      Liabilities 

  • 4. 
    What is the initial investment by an owner of a sole trader (sole proprietorship) or partnership business called?
    • A. 

      Capital 

    • B. 

      Asset

    • C. 

      Drawing

    • D. 

      Liability

  • 5. 
    When a company pays a bill, the account Cash will be
    • A. 

      Debited

    • B. 

      Credited 

    • C. 

      Depends on what kind of payment

    • D. 

      Nothing changes

  • 6. 
    Which of the following items would be accounted for as an expense?
    • A. 

      Repayment of a bank loan

    • B. 

      Dividends to stockholders

    • C. 

      The purchase of land

    • D. 

      Payment of the current period's rent 

  • 7. 
    Which of the following would not be included on a balance sheet?
    • A. 

      Accounts receivable

    • B. 

      Accounts payable

    • C. 

      Sales 

    • D. 

      Cash

  • 8. 
    Which of these is the most important feature of accounting?
    • A. 

      Drinking lots of coffee

    • B. 

      Noting down the debits and credits

    • C. 

      Interpreting the accounts and financial activity

    • D. 

      Recording transactions and financial activity 

  • 9. 
    Accounting entries involve a minimum of how many accounts?
    • A. 

      Three

    • B. 

      Two 

    • C. 

      One

    • D. 

      Four

  • 10. 
    Gerald had beginning total stockholders’ equity of $160,000. During the year, total assets increased by $240,000, and total liabilities increased by $120,000. Gerald’s net income was $180,000. No additional investments were made; however, dividends did occur during the year. How much were the dividends?
    • A. 

      $20,000

    • B. 

      $60,000 

    • C. 

      $220,000

    • D. 

      $140,000

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