Accounting Quiz For Starters

26 Questions | By ReynaldoJPA | Last updated: Mar 21, 2022 | Total Attempts: 1264

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Struggle to study accountancy? Well, it is not that difficult, especially if you know the basics. This is an accounting quiz designed to clear some fundamental doubts and clear the basics of accounting. Share this quiz with your fellow accounting classmates so they get a chance to brush up on their accounting skills.

Questions and Answers

1.

To increase a cash account we have to credit it
- A.
  
  True
- B.
  
  False
2.

To increase accounts receivable we have to debit it
- A.
  
  True
- B.
  
  False
3.

To increase an expense we have to credit it
- A.
  
  True
- B.
  
  False
4.

To increase Revenue we to have to debit it
- A.
  
  True
- B.
  
  False
5.

To decrease accounts payable we have to credit it
- A.
  
  True
- B.
  
  False
6.

To increase Owner's drawings we have to debit it
- A.
  
  True
- B.
  
  False
7.

To increase common shares we have to credit it
- A.
  
  True
- B.
  
  False
8.

The chart of accounts is a listing of all the accounts being used by all businesses with a standard set of numbers
- A.
  
  True
- B.
  
  False
9.

How are entries recorded in the journal?
- A.
  
  In the proper order of account numbers used
- B.
  
  Alphabetically
- C.
  
  Chronologically
- D.
  
  It depends on the business
10.

When recording journal entries, the debits and credits do not necessarily have to balance
- A.
  
  True
- B.
  
  False
11.

The document which records all the accounts of the business and activities and balances of each specific account is called a:
- A.
  
  Journal
- B.
  
  General Ledger
- C.
  
  Trial Balance
- D.
  
  General Journal
12.

Which of the following statements about posting to the general ledger is true?
- A.
  
  It involves the transfer of journal entries to the ledger accounts
- B.
  
  It involves the transfer from the trial balance to the financial statements
- C.
  
  It normally occurs before entering transactions into a journal
- D.
  
  It involves the transfer from the trial balance to the general ledger
13.

Tne importance of the trial balance is...
- A.
  
  Making sure all transactions have been recorded
- B.
  
  Making sure the total debits equals the total credits
- C.
  
  Making sure there are no errors in the accounting records
- D.
  
  Making sure the journal entries have been posted only once
14.

Click on each box that corresponds to an account that will not show on the post-closing trial balance
- A.
  
  Service Revenue
- B.
  
  Cash
- C.
  
  Expenses
- D.
  
  Accounts Receivable
15.

By debiting the income statament balances you are...
- A.
  
  Closing the revenue accounts for the year
- B.
  
  Closing the expense accounts for the year
- C.
  
  Closing the drawings account for the year
- D.
  
  You are not closing any account
16.

After posting the closing entries, a company must prepare a(n)
- A.
  
  Posting trial balance
- B.
  
  Post-closing trial balance
- C.
  
  Unadjusted trial balance
- D.
  
  Adjusted trial balance
17.

Zero balances will be found in some accounts in the new accounting period - these are...
- A.
  
  Cash and Revenue
- B.
  
  Revenue and Accounts Receivable
- C.
  
  Revenue and Expenses
- D.
  
  Expenses and bank loans
18.

A post-closing trial balance contains:
- A.
  
  Liabilities and Assets Only
- B.
  
  Assets and Owner's equity Only
- C.
  
  Liabilities and Owner's equity Only
- D.
  
  Assets, Liabilities, and Owner's equity Only
19.

After closing revenues and expenses, but before closing the income summary account a successful company would show a
- A.
  
  A credit balance in the income summary account
- B.
  
  A debit balance in the income summary account
- C.
  
  A zero balance in the income summary account
- D.
  
  The income summary account in this transaction is not relevant
20.

Check all the boxes that correspond to temporary accounts
- A.
  
  Cash
- B.
  
  Bank Loans
- C.
  
  Rent Expense
- D.
  
  Revenue
21.

The income statement and the balance sheet is linked by:
- A.
  
  The statement of owner's equity
- B.
  
  The journal and the ledger
- C.
  
  Debits and Credits
- D.
  
  The ledger and the trial balance
22.

The statement of Owner's equity:
- A.
  
  Reports any chances in equity over the reporting period
- B.
  
  Is used to calculate ending Owner's equity so that it can be transferred to the income statement
- C.
  
  Is Used to determine the sources and uses of cash
- D.
  
  Reflects increases due to losses and decreases due to profits
23.

Check all applicable boxes for the following statement - Owner's drawings...
- A.
  
  Decreases Owner's equity
- B.
  
  Decreases Cash
- C.
  
  Increases by debiting it
- D.
  
  Is an account to record money that the owner is withdrawing for their personal use
24.

A company has 60,000 loan to be paid of in 20 months. Principal payments are 2,000 per month. The current and non-current portions of the loan after three months are...
- A.
  
  24,000 Current and 30,000 non current
- B.
  
  36,000 Current and 24,000 non current
- C.
  
  30,000 Current and 24,000 non current
- D.
  
  24,000 Current and 36,000 non current
25.

At the end of June, a company has total assets of 150,000. Non current assets are worth 42,500. The current portion of the bank loan is 2,000. The expenses were 5,500. The Service Revenue account has a balance of 5,500. What is the net profit of the company for the previous month?
- A.
  
  5,500
- B.
  
  0
- C.
  
  100,000
- D.
  
  105,500