Basic Financial Accounting Concepts! Quiz

10 Questions | By Terri3jones | Updated: Mar 21, 2022 | Attempts: 3179

Questions

Settings

Basic Financial Accounting Concepts! Quiz - Quiz

Financial Accounting means to analyze, summarize, and record financial transactions as well as to show an accurate picture of the financial affairs of the company. This basic quiz has been developed to test your knowledge of Financial Accounting Concepts and principles. So, let's try out the quiz. All the best!

Questions and Answers

1.

How is the income statement affected when a company issues stock?
- A.
  
  Income is greatly effected.
- B.
  
  No income statement effect. Purely balance sheet.
- C.
  
  Balance sheet is not effected
- D.
  
  One thru three are all correct
- E.
  
  None of the above
2.

What financial statement lists assets from current to long term?
- A.
  
  Balance Sheet
- B.
  
  Income Statement
- C.
  
  Cash Flow Statement
- D.
  
  Statement of retained earnings
3.

The income statement shows which of the following?
- A.
  
  Assets and liabilities
- B.
  
  Income and expenses
- C.
  
  Receipts and payments
- D.
  
  Bank Reconciliation Statement
4.

Equity is shown on which financial statement?
- A.
  
  Balance sheet
- B.
  
  Income statement
- C.
  
  Cash Flow
5.

Gross profit is equal to revenue less which item?
- A.
  
  Taxation
- B.
  
  Cost of goods sold
- C.
  
  Operating expenses
6.

Are inventory and accounts receivable are classified in the balance sheet as?
- A.
  
  Long-term assets
- B.
  
  Current liabilities
- C.
  
  Current assets
7.

The terms operating, financing and investing as used to categorize what type of item?
- A.
  
  Assets
- B.
  
  Revenue
- C.
  
  Cash flow
8.

A double entry bookkeeping posting requires a minimum of how many accounts?
- A.
  
  2
- B.
  
  1
- C.
  
  3
9.

A listing of the account names and account codes is called what?
- A.
  
  Trial balance
- B.
  
  Chart of accounts
- C.
  
  Balance sheet
10.

A listing of the balances on all accounts is called what?
- A.
  
  Trial balance
- B.
  
  Chart of accounts
- C.
  
  Balance sheet