Accounting, Test 1

7 Questions

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Accounting Quizzes & Trivia

For a business to prosper what they need most is funding which can come through investments, cash or selling their shares. What do you understand about these different types of funding and their treatment in the books of accounts? The quiz below is designed to help you answer that. Give it a try.


Questions and Answers
  • 1. 
    • A. 

      Sales of products or services

    • B. 

      Owners' claims to resources

    • C. 

      Resources owned

    • D. 

      Costs of selling products or services

    • E. 

      Amounts owed

  • 2. 
    What's revenue?
    • A. 

      Costs of selling products or services

    • B. 

      Expense to run business

    • C. 

      Sales of products or services

    • D. 

      Distributions to stockholders

    • E. 

      Assets purchased to run business

  • 3. 
    What are expenses?
    • A. 

      Costs of selling products or services

    • B. 

      Sales of products or services

    • C. 

      Amounts owed

    • D. 

      Distributions to stockholders

    • E. 

      Owners' claims to resources

  • 4. 
    • A. 

      Assets - liabilities = stockholders' equity

    • B. 

      Assets + liabilities = stockholders' equity

    • C. 

      Liabilities - stockholders' equity = assets

  • 5. 
    • A. 

      Bank loan

    • B. 

      Interest paid to a credit union

    • C. 

      Principle paid to Lehman bank

    • D. 

      Monthly rent on office space

  • 6. 
    What is the statement called that measures activities involving cash recipts and cash payments over an interval of time?
    • A. 

      Income Statement

    • B. 

      Balance Sheet

    • C. 

      The Statement of Stockholders' Equity

    • D. 

      The Statement of Cash Flows

  • 7. 
    • A. 

      Balance Statement

    • B. 

      Financial accounting net income

    • C. 

      Revenues

    • D. 

      Expenses