Basic Accounting MCQ Exam: Quiz!

10 Questions | Total Attempts: 286

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Basic Accounting MCQ Exam: Quiz!

What do you know about basic accounting? Could you pass an exam? If you are not sure, this quiz can help. Basic accounting refers to the process of recording a company’s financial exchanges. It involves analyzing, summarizing, and reporting these exchanges to tax collection agencies. The primary assets of a business include cash, accounts receivable, inventory, and fixed assets. If you want to put your knowledge to the test, this quiz is above all the rest.


Questions and Answers
  • 1. 
    Net profit is calculated in?
    • A. 

      Balance Sheet

    • B. 

      Profit and Loss Account

    • C. 

      Trading Account

    • D. 

      Trial Balance

  • 2. 
    Fixed assets can be described as?
    • A. 

      Furniture

    • B. 

      Cash at Bank

    • C. 

      Debtor

    • D. 

      Bank Loans

  • 3. 
    Drawings are when the owner
    • A. 

      Gives money to the business

    • B. 

      Gives money to charity

    • C. 

      Takes out business money for personal use

    • D. 

      Reduces the employee's pay

  • 4. 
    Assets increases on the debit side.
    • A. 

      True

    • B. 

      False

  • 5. 
    Fixed asset is bought by the business for?
    • A. 

      Resale

    • B. 

      Loans

    • C. 

      Business use

    • D. 

      Owner's use

  • 6. 
    The accounting equation is ?
    • A. 

      Assets - Liability = Owner's equity

    • B. 

      Liability = Owner's equity = Assets

    • C. 

      Assets + Liability = Owner's equity

    • D. 

      Currents Assets = Long-term liability - Owner's equity

  • 7. 
    Trial Balance is done after T-accounts.
    • A. 

      True

    • B. 

      False

  • 8. 
    The company makes a loss when the amount spent on the purchases is lower than the sale.
    • A. 

      True

    • B. 

      False

  • 9. 
    What is another word for revenue?
    • A. 

      Income

    • B. 

      Expenses

    • C. 

      Liability

    • D. 

      Assets

  • 10. 
    Gross profit is calculated in the?
    • A. 

      T- Accounts

    • B. 

      Profit and Loss Account

    • C. 

      Trading Account

    • D. 

      Balance Sheet

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