Accounting 101
Are you just beginning your journey to becoming an accredited accountant? Having being introduced to the basics on accounting and the principles governing it you now have a good foundation. Test your knowledge on accounting 101 before you move on to the next course. Remember practice makes perfect. Good luck!
- 1.
What is the general rule for an Asset?
Correct Answer(s)
Debit - 2.
What is the general rule for a Liability?
Correct Answer(s)
Credit - 3.
What is the general rule for Equity?
Correct Answer(s)
Credit - 4.
What is the general rule for Revenue?
Correct Answer(s)
Credit - 5.
What is the general rule for Expense?
Correct Answer(s)
Debit - 6.
US G.A.A.P. stands for Generally Accepted Accounting Principles
- A.
True
- B.
False
Correct Answer
A. True -
- 7.
____________ - long set of principles, practices, methods of accounting that have gained acceptance in the US
Correct Answer
us gaap - 8.
What did A.P.B. (Accounting Principle Board) develop?
Correct Answer
US G.A.A.P. - 9.
Which of the following have the power to form US G.A.A.P.?
- A.
S.E.C. (Securities Exchange Committee)
- B.
C.P.A. (Certified Practicing Accountant)
- C.
I.M.A. (Institute of Management Accounting)
- D.
F.A.S.B. (Financial Accounting Standards Board)
- E.
I.I.A. (Institute of Internal Auditors)
Correct Answer(s)
A. S.E.C. (Securities Exchange Committee)
D. F.A.S.B. (Financial Accounting Standards Board) -
- 10.
_______ - Consists of policies and procedures that are good for the company
Correct Answer(s)
Internal Control - 11.
Which of the following describes a CPA?
- A.
Independent, hired by a company to audit financial statements
- B.
Works for a company and audits balance sheets
- C.
Independent, hired by a company and accounts for all purchases
- D.
Cheapest person alive
Correct Answer
A. Independent, hired by a company to audit financial statements -
- 12.
______ - independent accuracy of financial statements
Correct Answer
Audit - 13.
Which is the correct equation on the balance sheet?
- A.
Liabilities - Equity = Assets
- B.
Assets = Liabilities + Equity
- C.
Assets/Liabilities = Equity
- D.
Assets = (Liabilities)(Equity)
Correct Answer
B. Assets = Liabilities + Equity -
- 14.
A tangible asset is something that you can't touch.
- A.
True
- B.
False
Correct Answer
B. False -
- 15.
An example of an intangible asset would be
Correct Answer
stock, bond, brand name - 16.
Another name for Cost Principle is
- A.
Original Cost Principle
- B.
Cost at Purchase
- C.
Original Price Principle
- D.
Historical Cost Principle
Correct Answer
D. Historical Cost Principle -
- 17.
______ - what the item was originally paid for
Correct Answer
Cost Principle, Historical Cost Principle - 18.
Accounts Receivable is when the customer owes you money
- A.
True
- B.
False
Correct Answer
A. True -
- 19.
_________ - the idea that if you are in business today, you are expected to be in business indefinetly
Correct Answer
Going Concern - 20.
_______ - they take into account negative future cash flow
Correct Answer
Liabilities - 21.
Liquidity is the order in which something is expected to be paid
- A.
True
- B.
False
Correct Answer
A. True -
- 22.
________ - an account that is expected to be payed within 30 days
Correct Answer
Accounts payable - 23.
What are the 2 features of Notes Payable
- A.
Signature and payment within 30 days
- B.
Signature and intrest
- C.
Payment within 30 days and intrest
- D.
Signature
Correct Answer
B. Signature and intrest -
- 24.
The principle is the amount of money that you have borrowed and do not have to give back
- A.
True
- B.
False
Correct Answer
B. False -
- 25.
_______ - they effect each other; ex: a number from one statement will match with that number on another statement
Correct Answer
Articulate Financial Statements - 26.
What comes out of retained earnings (decreases retained earnings)?
Correct Answer
Dividends - 27.
What is the correct order of the accounting process?
- A.
Journal transactions, execute transactions, post journal entries to the general ledger, prepare and unadjusted trial balance, prepare and record adjusting entries, adjusted trial balance, prepare financial statements
- B.
Execute transactions, journal transactions, post journal entries to the general ledger, prepare and unadjusted trial balance, prepare and record adjusting entries, prepare financial statements, adjusted trial balance
- C.
Execute transactions, journal transactions, post journal entries to the general ledger, prepare and unadjusted trial balance, prepare and record adjusting entries, adjusted trial balance, prepare financial statements
- D.
Execute transactions, post journal entries to the general ledger, journal transactions, prepare and unadjusted trial balance, prepare and record adjusting entries, adjusted trial balance, prepare financial statements
Correct Answer
C. Execute transactions, journal transactions, post journal entries to the general ledger, prepare and unadjusted trial balance, prepare and record adjusting entries, adjusted trial balance, prepare financial statements -
- 28.
When doing a journal entry, what is true about debits?
- A.
Flush with the margin
- B.
Indented
- C.
Left side of t-chart
- D.
Right side of t-chart
Correct Answer(s)
A. Flush with the margin
C. Left side of t-chart -
- 29.
When doing a journal entry, what is true about credits
- A.
Indented
- B.
Flush with the margin
- C.
Left side of t-chart
- D.
Right side of t-chart
Correct Answer(s)
A. Indented
D. Right side of t-chart -
- 30.
_______ - when revenue/income is recognized when a service is provided or merchandise is sold
Correct Answer(s)
Realization Principle - 31.
A company is required by law to pay dividends to its shareholders
- A.
True
- B.
False
Correct Answer
B. False -
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
-
Jun 27, 2018Quiz Edited by
ProProfs Editorial Team -
Mar 16, 2015Quiz Created by
Josephfemia
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