Accounting 101

32 Questions | Total Attempts: 94

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Accounting Quizzes & Trivia

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!


Questions and Answers
  • 1. 
    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

  • 2. 
    ____________ - long set of principles, practices, methods of accounting that have gained acceptance in the US
  • 3. 
    What did A.P.B. (Accounting Principle Board) develop?
  • 4. 
    What is the general rule for a Liability?
  • 5. 
    What is the general rule for an Asset?
  • 6. 
    _______ - Consists of policies and procedures that are good for the company
  • 7. 
    What is the general rule for Expense?
  • 8. 
    US G.A.A.P. stands for Generally Accepted Accounting Principles
    • A. 

      True

    • B. 

      False

  • 9. 
    What is the general rule for Revenue?
  • 10. 
    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

  • 11. 
    What is the general rule for Equity?
  • 12. 
    A tangible asset is something that you can't touch.
    • A. 

      True

    • B. 

      False

  • 13. 
    Accounts Receivable is when the customer owes you money
    • A. 

      True

    • B. 

      False

  • 14. 
    _________ - the idea that if you are in business today, you are expected to be in business indefinetly
  • 15. 
    What comes out of retained earnings (decreases retained earnings)?
  • 16. 
    _______ - when revenue/income is recognized when a service is provided or merchandise is sold
  • 17. 
    ______ - independent accuracy of financial statements
  • 18. 
    Another name for Cost Principle is 
    • A. 

      Original Cost Principle

    • B. 

      Cost at Purchase

    • C. 

      Original Price Principle

    • D. 

      Historical Cost Principle

  • 19. 
    An example of an intangible asset would be
  • 20. 
    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

  • 21. 
    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)

  • 22. 
    The principle is the amount of money that you have borrowed and do not have to give back
    • A. 

      True

    • B. 

      False

  • 23. 
    ______ - what the item was originally paid for
  • 24. 
    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

  • 25. 
    ________ - an account that is expected to be payed within 30 days