Accounting Hardest Exam Quiz: Trivia!

79 Questions | By Skijosh | Updated: Mar 22, 2022 | Attempts: 1243

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Accounting Hardest Exam Quiz: Trivia! - Quiz

Are you ready to take the most challenging accounting exam? Could you pass this quiz? The financial accounting exam involves concepts that are taught to new students. Accounting is when a professional evaluates numbers and records for businesses or individuals, which you learn at the beginning of the course. If you are looking for a way to test your accounting knowledge, this quiz is a must do for you.

Questions and Answers

1.

Financial transactions are summarized in:
- A.
  
  Financial statement footnotes.
- B.
  
  The independent auditor's opinion letter.
- C.
  
  The entity's accounts.
- D.
  
  None of the above.
2.

Which classification of accounting is most concerned with the use of economic and financial information to plan and control many of the activities of the entity?
- A.
  
  Financial accounting.
- B.
  
  Auditing-Public accounting.
- C.
  
  Managerial accounting.
- D.
  
  Income tax accounting.
3.

The accounting equation is Assets = Liabilities - Owners Equity.
- A.
  
  True
- B.
  
  False
4.

The distinction between a current asset and other assets:
- A.
  
  Is based on how long the asset has been owned.
- B.
  
  Is based on amounts that will be paid to other entities within a year.
- C.
  
  Is based on the ability to determine the current fair market value of the asset.
- D.
  
  Is based on when the asset is expected to be converted to cash, or used to benefit the entity.
5.

The time frame associated with a balance sheet is:
- A.
  
  A point in time in the past.
- B.
  
  A one-year past period of time.
- C.
  
  A single date in the future.
- D.
  
  A function of the information included in it.
6.

Owners' equity refers to which to the following?
- A.
  
  A listing of the organization's assets and liabilities.
- B.
  
  The ownership right of the owner(s) of the entity.
- C.
  
  Probable future sacrifices of economic benefits.
- D.
  
  All of the above.
- E.
  
  None of the above.
7.

Which answer describes an internal auditor?
- A.
  
  Internal auditors state an opinion on the financial statements – this opinion is printed in the Annual Report.
- B.
  
  The internal auditor is an employee of the external auditor.
- C.
  
  The internal auditor performs tasks similar to the external auditor – but the internal auditor is employed in industry rather than public accounting.
- D.
  
  All of the above.
- E.
  
  None of the above.
8.

The time frame associated with an income statement is:
- A.
  
  A point in time in the past.
- B.
  
  A past period of time.
- C.
  
  A future period of time.
- D.
  
  A function of the information included in it.
9.

The purpose of the income statement is to show the:
- A.
  
  Change in the fair market value of the assets from the prior income statement.
- B.
  
  Market value per share of stock at the date of the statement.
- C.
  
  Revenues collected during the period covered by the statement.
- D.
  
  Net income or net loss for the period covered by the statement.
10.

The accounting equation is: Assets = Liabilities + Retained Earnings
- A.
  
  True
- B.
  
  False
11.

The accounting equation is: Assets = Liabilities / Owners Equity
- A.
  
  True
- B.
  
  False
12.

The Statement of Cash Flows:
- A.
  
  Shows how cash changed during the period.
- B.
  
  Is an optional financial statement.
- C.
  
  Shows the change in the market value of the entity's common stock during the period.
- D.
  
  Shows the dividends that will be paid in the future.
13.

Beg. Retained Earnings = 100,000Ending Retained Earnings = 250,000Assume that there were no dividends declared. What is Net Income for the year?
- A.
  
  150,000
- B.
  
  250,000
- C.
  
  175,000
- D.
  
  125,000
- E.
  
  100,000
14.

The accounting equation is: Assets = Liabilities + Contributed Capital
- A.
  
  True
- B.
  
  False
15.

Total Assets = 350,000Total Liabilities = 200,000Contributed Capital = 50,000Retained Earnings = ?
- A.
  
  75,000
- B.
  
  100,000
- C.
  
  55,000
- D.
  
  90,000
- E.
  
  Not enough data to answer the question
16.

Beg. Retained Earnings = 110,000Ending Retained Earnings = 225,000Assume that there were 50,000 in dividends declared. What is Net Income for the year?
- A.
  
  115,000
- B.
  
  65,000
- C.
  
  75,000
- D.
  
  165,000
- E.
  
  Not enough Data to answer this question.
17.

What do the following accounts have in common?Short-term investmentsAccounts payableCash equivalentsWages payable
- A.
  
  They are all found on the income statement.
- B.
  
  They are all assets.
- C.
  
  They would all be classified as "current".
- D.
  
  They are all expenses.
- E.
  
  They are all liabilities.
18.

Which of the following is an Asset?
- A.
  
  Accumulated Depreciation
- B.
  
  Wages Payable
- C.
  
  Net Sales
- D.
  
  Depreciation Expense
- E.
  
  Contributed Capital
19.

Total Current Assets = 300,000Total Liabilities = 200,000Contributed Capital = 50,000What is the amount of retained earnings?
- A.
  
  50,000
- B.
  
  150,000
- C.
  
  250,000
- D.
  
  300,000
- E.
  
  Not enough data to answer the question.
20.

The current assets of most companies are usually made up of:
- A.
  
  Assets that are currently used in the operations of the company.
- B.
  
  Cash and assets expected to be converted to cash within a year.
- C.
  
  A very small proportion (less than 10%) of the total assets of the entity.
- D.
  
  Cash, marketable securities, and accounts and long-term notes receivable.
21.

For which of the following reconciling items would an adjusting entry be necessary?
- A.
  
  A deposit in transit.
- B.
  
  The bank has made an error. They have record a deposit by you as double the amount you actually deposited.
- C.
  
  Outstanding checks.
- D.
  
  A bank service charge.
22.

Beg. Retained Earnings = 175,000Ending Retained Earnings = 125,000Assume that there were no dividends declared. What is Net Income/Loss for the year?
- A.
  
  25,000
- B.
  
  (45,000)
- C.
  
  65,000
- D.
  
  (50,000)
- E.
  
  55,000
23.

A debit
- A.
  
  Always increases assets.
- B.
  
  Always increases liabilities.
- C.
  
  Increases an expense account.
- D.
  
  Increases a revenue account.
24.

The principal reason for reconciling the cash balance per books with the balance shown on the bank statement is to:
- A.
  
  Determine the amount of cash in the account actually available to the entity.
- B.
  
  Satisfy generally accepted accounting principles.
- C.
  
  Verify the amount of petty cash on hand.
- D.
  
  Determine whether or not the entity has issued an NSF check.
25.

There are transactions that will cause your balance sheet to not balance.
- A.
  
  True
- B.
  
  False