Acct 2301.02 Principles Of Financial Accounting Quiz

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| By JIJohnson

JIJohnson

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Quizzes Created: 4 | Total Attempts: 7,062

Questions: 5 | Attempts: 1,686 | Updated: Mar 20, 2022

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Acct 2301.02 Principles Of Financial Accounting Quiz - Quiz

These are 5 True-False questions that were selected randomly from our mid-term exam for you to practice with.

Questions and Answers

1.

Ethics are not important to the primary functions of accounting.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
As I've tried to emphasize in class, ethics are critical for accounting to function properly in modern society.

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2.

The business entity principle prescribes that a business will continue operating for an indefinite period of time.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
What is described in this question is actually the going concern principle. The business entity principle basically prescribes that a business' activities and financial information is separate from those individuals that own the business.

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3.

Preparation of a trial balance is the first step in the analyzing and recording process.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Preparing a trial balance comes after the analysis of transactions, journalizing and posting of all entries.

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4.

Adjusting entries result in a better matching of revenues and expenses.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
Truer words were never spoken. Okay, I guess maybe they were, but this statement is still right on.

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5.

Adjusting entries are made after the preparation of financial statements.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Adjusting entries are made before preparation of the financial statements.

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Current Version
Mar 20, 2022

Quiz Edited by
ProProfs Editorial Team
Feb 15, 2008

Quiz Created by
JIJohnson

Acct 2301.02 Principles Of Financial Accounting Quiz

Ethics are not important to the primary functions of accounting.

The business entity principle prescribes that a business will continue operating for an indefinite period of time.

Preparation of a trial balance is the first step in the analyzing and recording process.

Adjusting entries result in a better matching of revenues and expenses.

Adjusting entries are made after the preparation of financial statements.