Small Business Accounting Trivia Questions Quiz!

10 Questions | Total Attempts: 113

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Small Business Accounting Trivia Questions Quiz!

Small-business owners make decisions every day that impact the economics of the venture. Having proper accounting procedures in place makes it easy to track the money as it comes and goes and to have an up-to-date view of the company's financial health. Take this quiz to know more.


Questions and Answers
  • 1. 
    Amongst the following, who is considered an external user of accounting?
    • A. 

      Supervisors of a business

    • B. 

      Customers 

    • C. 

      Employees

    • D. 

      Managers of a corporation

  • 2. 
    For accounting and financial reporting purposes, smaller businesses...
    • A. 

      Generally require complex, expensive accounting software systems

    • B. 

      Only need to generate financial reports when requesting business financing

    • C. 

      Can generally perform accounting and financial reporting manually or with a small accounting system 

    • D. 

      Do not normally have any accounting and financial reporting processes

  • 3. 
    Which one of the following scenarios would most likely describe the accounting personnel for a small business?
    • A. 

      An accounting department that consists of 50 employees, 10 of whom are senior managers

    • B. 

      An accounting department made up of 4 employees there is one person for each function including accounts receivable, accounts payable, general ledger, and financial reporting 

    • C. 

      An accounting department for each division consisting of 25 employees each

    • D. 

      An accounting manager for each line of service the company offers

  • 4. 
    What are the primary purpose of internal controls in accounting and financial reporting?
    • A. 

      To ensure timely reporting of financial data 

    • B. 

      To mitigate the reporting of inaccurate financial data and fraud

    • C. 

      To make sure each employee performs the tasks they have been assigned, without deviation

    • D. 

      To make the accounting manager's job easier

  • 5. 
    What is double entry accounting?
    • A. 

      Where two people enter in the account books

    • B. 

      Where one person writes down entries and another review

    • C. 

      System of accounting that records each business transaction as two components (one as a debit and one as a credit)

    • D. 

      None of the above

  • 6. 
    In the basic accounting equation, Assets= Liabilities +?
    • A. 

      Long term investments

    • B. 

      Current assets

    • C. 

      Retained earnings

    • D. 

      Stockholders’ Equity

  • 7. 
    Which term describes an amount owed by a business?
    • A. 

      An asset

    • B. 

      Loss

    • C. 

      A liability 

    • D. 

      Debt

  • 8. 
    Which of the following refers to organized summaries of business's financial activities?
    • A. 

      Accounting Records

    • B. 

      Financial Statements 

    • C. 

      Banking Worksheets

    • D. 

      Balance Sheet

  • 9. 
    Which of the following is a financial statement used to indicate how successfully the business performed during a period of time?
    • A. 

      Income Statement 

    • B. 

      Statement of Cash flows

    • C. 

      Retained Earnings Statement

    • D. 

      Balance Sheet

  • 10. 
    What is the method used to determine the minimum sales volume needed to cover all costs?
    • A. 

      Sherman Act

    • B. 

      Stamp Act

    • C. 

      BreakEven Analysis 

    • D. 

      Budget

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