A Basic Accounting Quiz!

8 Questions | Total Attempts: 13023

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A Basic Accounting Quiz!

Accounting is something that is existent in different companies and is essential to ensure that a business keeps on growing. The quiz below is designed to test your knowledge on some basic accounting principles and issues so as to get the job you are applying for. Give it a shot and get to learn more about it. All the best!


Questions and Answers
  • 1. 
    Profit is equal to:
    • A. 

      Income minus expenses

    • B. 

      Receipts minus expenditures

    • C. 

      Inflows minus outflows

    • D. 

      Revenue minus expenses

  • 2. 
    Which financial statement will tell you how profitable a company is?
    • A. 

      Income statement

    • B. 

      Cash flow statement

    • C. 

      Balance sheet

    • D. 

      All of the above

  • 3. 
    Under the accrual method of accounting, expenses are recorded:
    • A. 

      When they are paid.

    • B. 

      When invoices for expense items are received.

    • C. 

      When they are incurred

  • 4. 
    Recognition of Depreciation Expense:
    • A. 

      Results in a decrease in Income.

    • B. 

      Does not decrease Income because it is not a true cash expense

    • C. 

      Is required by the matching principle

    • D. 

      Both A and C

  • 5. 
    In accounting, Debit (Dr) means which side of a ledger account?
    • A. 

      Left

    • B. 

      Middle

    • C. 

      Right

  • 6. 
    True or False: assets are typically recorded on the Balance Sheet at their estimated fair market value.
    • A. 

      True

    • B. 

      False

  • 7. 
    Debits and Credits are a part of double-entry bookkeeping?
    • A. 

      True

    • B. 

      False

  • 8. 
    To increase an Asset, you Debit the account?
    • A. 

      True

    • B. 

      False

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