Fundamentals Of Accounting Test Quiz!

10 Questions | By Rsahiwal | Updated: Mar 22, 2022 | Attempts: 15654

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Fundamentals Of Accounting Test Quiz! - Quiz

Accounting is a tool to record and analyze the financial condition and performance of the business. Some people simply can’t understand the stats and figures. But some possess deep knowledge and concepts about accounting principles. This quiz has been created to test your knowledge about the fundamental rules and principles of accounting. So, let's try out the quiz. All the best!

Questions and Answers

1.

Which financial statement displays the revenues and expenses of a company for a period of time?
- A.
  
  Income Statement
- B.
  
  Balance Sheet
- C.
  
  Cash Flow Statement
- D.
  
  Statement of Stockholder's Equity
2.

What is the main purpose of financial accounting?
- A.
  
  Organize Financial Information
- B.
  
  Provide Useful, Financial Information to Outsiders
- C.
  
  Keep Track of Company Expenses
- D.
  
  Minimize Company Taxes
3.

Which of these is not included as a separate item in the basic accounting equation?
- A.
  
  Assets
- B.
  
  Revenues
- C.
  
  Liabilities
- D.
  
  Stockholder's Equity
4.

Entries to revenues accounts such as Service Revenues are usually
- A.
  
  Debit
- B.
  
  Credit
5.

The accrual basis of accounting records revenues when they are:
- A.
  
  Collected
- B.
  
  Earned
- C.
  
  Contracted
- D.
  
  Readily Available for use
6.

The account format that displays debits, credits, balances, and headings.
- A.
  
  General Journal
- B.
  
  General Ledger
- C.
  
  T- Account
- D.
  
  Ledger Account
7.

Asset accounts have what type of balance?
- A.
  
  Debit
- B.
  
  Credit
- C.
  
  Contra
- D.
  
  All of the above
8.

Which account is not a liability account?
- A.
  
  Accounts payable
- B.
  
  Accrued Expenses
- C.
  
  Cash
- D.
  
  Notes Payable
9.

A ___________ is used to record a business event as they occur throughout the year.
- A.
  
  Journal Entry
- B.
  
  Ledger
- C.
  
  Trial Balance
- D.
  
  Bank Reconciliation Statement
10.

The __________ summarizes the accounting equation in report format.
- A.
  
  Trial Balance
- B.
  
  Balance Sheet
- C.
  
  Journal
- D.
  
  Ledger