Accounting Questions: Trivia Exam! Quiz

35 Questions | Total Attempts: 1239

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Accounting Questions: Trivia Exam! Quiz

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Questions and Answers
  • 1. 
    What is another term used by accountants for the word "assets?"
    • A. 

      Liabilities

    • B. 

      Equity

    • C. 

      Losses

    • D. 

      Profit

  • 2. 
    What is the name of the sheet that businesses use to account for assets, liabilities, and owner's equity?
    • A. 

      Balance Sheet

    • B. 

      Profit Margin Sheet

    • C. 

      Financial Agreement Statement

  • 3. 
    The accounting equation is best described as Assets = Liabilities + Owner's Equity
    • A. 

      True

    • B. 

      False

  • 4. 
    What is the basic income equation that is used to identify net income?
    • A. 

      Net income = revenues - expenses

    • B. 

      Revenues = expenses - net income

    • C. 

      Profit = revenues - net income

    • D. 

      Net income = revenues - profit

  • 5. 
    Suppose you buy a car for $10,000 from Mac's Dealership. You put $2,000 down on the car payment and receive a loan to pay off the remaining balance ($8,000). How much of the car do you own according to the bank?
    • A. 

      40% of the car

    • B. 

      20% of the car

    • C. 

      No Ownership

    • D. 

      Full Ownership of the Car

  • 6. 
    What part of the accounting equation is missing in the example written below? Assets = Profit + Owner's Equity
    • A. 

      Assets

    • B. 

      Liabilities

    • C. 

      Owner's Equity

    • D. 

      Profit

  • 7. 
    • A. 

      Inflows of assets from selling goods or services

    • B. 

      Outflows of assets from selling goods or services

    • C. 

      Outflows and income related statements within a business

  • 8. 
    Where would 'capital investment by owner' be located in the accounting equation?
    • A. 

      Assets and Liabilities

    • B. 

      Assets and Profit

    • C. 

      Assets and Owner's Equity

    • D. 

      Owner's Equity and Liabilities

  • 9. 
    Suppose you buy a car $10,000 and own the car outright, but buy a house for $350,000 the next year and provide $50,000 for a down payment. What is your total liability following all of these transactions?
    • A. 

      $360,000

    • B. 

      $300,000

    • C. 

      $350,000

    • D. 

      $320,000

  • 10. 
    Suppose a business buys a $200.00 computer with cash. What side of the accounting equation increases?
    • A. 

      Liabilities

    • B. 

      Profit

    • C. 

      Assets

  • 11. 
    Where does cash in the bank fit in the accounting equation?
    • A. 

      Liabilities

    • B. 

      Profit

    • C. 

      Loss

    • D. 

      Assets

  • 12. 
    What is the acronym that is used by all accountants in terms of accounting principles?
    • A. 

      GAAP (Generally Accepted Accounting Principles)

    • B. 

      FASB (Financial Accounting Safety Board)

    • C. 

      ASA (Accounting Simplified Accepted)

    • D. 

      AMA (Accounting Made Easy)

  • 13. 
    The following are examples of what accounting term.... Rent Medical Bills Utilites Bills (Paying for water, trash pick up, snow removal)
    • A. 

      Expenses

    • B. 

      Revenue

    • C. 

      Loss

    • D. 

      Profit

  • 14. 
    Is the following accounting equation true or false... 81,000 = 16,000 + 20,000
    • A. 

      True

    • B. 

      False

  • 15. 
    What is the name of accounting that most accountants use to balance their company's financial transactions?
    • A. 

      Mark to Marketing Accounting

    • B. 

      Double-Entry Accounting

    • C. 

      Tiered Accounting

    • D. 

      Simplified Accounting

  • 16. 
    What is an account title?
    • A. 

      The name given to an account

    • B. 

      The statement provided to a company

    • C. 

      A third party expense report

    • D. 

      A statement indicating balances, profits and losses

  • 17. 
    What is a proprietorship?
    • A. 

      A business owned by three or more people

    • B. 

      A business owned by a single person

    • C. 

      Similar to a corporation

    • D. 

      A specific type of accounting used by businesses in Europe

  • 18. 
    Which term fits with the below written definition.... A type of cash that is kept by businesses that is typically below $100 and available to employees only.
    • A. 

      Cash in the Bank

    • B. 

      Assets

    • C. 

      Petty Cash

    • D. 

      Liabilities

  • 19. 
    What were the three accounting/economic terms that were used while playing the Dating Game?
    • A. 

      Scarcity, Choice, and Cost

    • B. 

      Choice, Profit, and Loss

    • C. 

      Scarcity, Profit, and Loss

    • D. 

      Assets, Liabilities, and Scarcity

  • 20. 
    What is wrong with the following accounting equation? Assets = Liabilities + Owner's Equity Cash on Hand + Office Supplies + Computer Equipment = Accounts Payable + Owner's Equity $10000.00             +    $300.00          +  $1,000.00                = $10,000                    +  $1,300.00
    • A. 

      Liabilities

    • B. 

      Owner's Equity

    • C. 

      Assets

    • D. 

      Nothing, the equation is correct

  • 21. 
    Identify the accoun or accounts affected by the below transaction... Jan Swift deposited $45,000 into starting a new company
    • A. 

      Owner's Equity Only

    • B. 

      Cash on Hand and Owner's Equity

    • C. 

      Assets Only

    • D. 

      Cash on Hand and Liabilities

  • 22. 
    • A. 

      Cash on Hand and Accounts Receivable

    • B. 

      Land and Owner's Equity

    • C. 

      Cash on Hand and Accounts Payable

    • D. 

      Nothing Changes

  • 23. 
    Determine the Cash in Bank balance for Mac's Awesome Designs after the third transaction that follows. All three transactions occurred on the same day. The Cash in the Bank Balance before the first transaction was made was $10,000. You are calculating the business's Cash in the Bank balance Beginning Balance $10,000 First Transaction = Mac withdrew $1,000 from personal savings and deposited it into the company's account Second Transaction = Mac purchased computer equipment for $5,000; issued a check for 20% of the price and agreed to pay the balance at a later day Third Transaction: Mac issued a check for $100.00 to buy computer tools
    • A. 

      $10,000

    • B. 

      $5,000

    • C. 

      $9,900

    • D. 

      $6,900

  • 24. 
    What is the first step in analyzing a business transaction as an accountant?
    • A. 

      Identify the accounts affected

    • B. 

      Classify the accounts affected

    • C. 

      Determine the amount of increase or decrease for each account affected

    • D. 

      Check the accounting equation balance

  • 25. 
    What are financial claims?
    • A. 

      The legal rights to property and are also measured in dollars

    • B. 

      The legal rights to court appointed property

    • C. 

      Property held by somebody else

    • D. 

      Government's ability to seize and control property