Quiz: Do You Know Accounting?

10 Questions | Total Attempts: 499

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Quiz: Do You Know Accounting? - Quiz

Accounting is one of the most needed and well-sought-after careers. Are you excited about accounting? Do you think you know accounting? Take this quiz and find out. Every business, be it small or large, needs an accountant. The quiz below determines your knowledge of some basic accounting practices. Why not play this quiz with some of your friends for a fun learning time together; you can even compare scores! Wouldn't that be super fun? Give it a try, and all the best in your studies.


Questions and Answers
  • 1. 
    Trade discounts are generally not used to
    • A. 

      Avoid frequent changes in catalogues.

    • B. 

      Quote different prices for different quantities purchased.

    • C. 

      Encourage faster payment.

    • D. 

      Hide the true invoice price from competitors.

  • 2. 
    The purpose of accounting is to get information on :
    • A. 

      Cost and income of the employees

    • B. 

      Company's tax records

    • C. 

      Financial condition of an institution

    • D. 

      All of the above

  • 3. 
    Bank overdrafts are generally reported as
    • A. 

      A current asset.

    • B. 

      A contra account.

    • C. 

      A non-current asset.

    • D. 

      A current liability.

  • 4. 
    The portion of any demand deposit that a customer keeps as support for its existing or maturing obligations is called a(n)
    • A. 

      Account receivable.

    • B. 

      Bank overdraft.

    • C. 

      Compensating balance.

    • D. 

      Restricted cash.

  • 5. 
    Which of the following actions would not be considered good management of accounts receivable?
    • A. 

      Assessing creditworthiness of new or potential customers

    • B. 

      Very loose or flexible credit terms to encourage sales

    • C. 

      Offering discounts to encourage faster payment

    • D. 

      Regular aged receivables analysis

  • 6. 
    Dividends and interest receivable would be classified as
    • A. 

      Loans receivable.

    • B. 

      Trade receivables.

    • C. 

      Notes receivable.

    • D. 

      Nontrade receivables.

  • 7. 
    Which of the following is considered as “cash” for reporting purposes?
    • A. 

      Money market chequing accounts

    • B. 

      Certificates of deposit (CDs)

    • C. 

      Travel advances to employees

    • D. 

      Postdated cheques

  • 8. 
    The written evidence that supports a business transaction is called what?
    • A. 

      Journal

    • B. 

      Nominal accounts

    • C. 

      Voucher

    • D. 

      A ledger

  • 9. 
    ____________ is the process of entering the transaction from journal to the ledger. 
    • A. 

      Entry

    • B. 

      Writing

    • C. 

      Posting

    • D. 

      All of the above

  • 10. 
    __________ is the measure of how the assets resources are employed efficiently by the firm
    • A. 

      Profitability ratios

    • B. 

      Activity ratios

    • C. 

      Leverage ratios

    • D. 

      None of the above

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