How Well You Know Accounting Principles? Trivia Quiz

10 Questions | Total Attempts: 780

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How Well You Know Accounting Principles? Trivia Quiz

How well do you know accounting principles? Accounting is the system of documenting and summarizing business and financial transactions by examining and determining the results. Accounting is how your business records and organizes financial information. With this quiz, you must learn the type of statement that reports the revenue, expenses, and net income loss for the accounting period. This quiz is centered on accounting and its principles. You should give it a go.


Questions and Answers
  • 1. 
    These are items that will be held for more than one year and include the following: equipment, trucks, and buildings.
    • A. 

      Accounts payable

    • B. 

      Fixed assets

    • C. 

      Current assets

    • D. 

      Calendar year

  • 2. 
    Which of the following is not considered a source of funding a start-up business?
    • A. 

      Personal Savings

    • B. 

      Angel Investor

    • C. 

      Partner

    • D. 

      Due diligence

  • 3. 
    This report shows how much cash your business took in and where the cash went.  This is a major consideration that investors and lenders want to see constant and positive when giving you money for your business.
    • A. 

      Cash flow statement

    • B. 

      Balance sheet statement

    • C. 

      Income statement

    • D. 

      Profit and Loss statement

  • 4. 
    These are business expenses that change with the volume of products produced such as supplies, wages, and production materials.
    • A. 

      Fixed expenses

    • B. 

      Variable expenses

    • C. 

      Forecasting Sales

    • D. 

      Break-even point

  • 5. 
    Ka'maina Inflatable is determining the profit potential of bringing in new jumping castle for their business.  The fixed costs for this jumping castle  to be produced is $4,750.  Variable costs total $290 for each time the jumping castle is used.  Ka'maina Inflatable sets the renting price of this jumping castle to $350.  What is the minimum number of jumping castles that need to be rented in order for Ka'maina Inflatable to break-even?
    • A. 

      80

    • B. 

      60

    • C. 

      21

  • 6. 
    This type of statement reports the revenue, expenses, and net income or loss for the accounting period
    • A. 

      Cash flow statement

    • B. 

      Income statement

    • C. 

      Balance sheet statement

  • 7. 
    This source of financing is a private investor who funds start-up companies.  These are also nonprofessional financing sources.  They are often friends, relatives , and business associates who invest because of their belief in the business
    • A. 

      Angel

    • B. 

      Partner

    • C. 

      Bank

    • D. 

      Venture Capitalist

  • 8. 
    For accounting and financial purposes, anything of value that a business owns is considered:
    • A. 

      a liability

    • B. 

      An asset

    • C. 

      Cash

  • 9. 
    Assets = Liabilities + Owner's Equity
    • A. 

      True

    • B. 

      False

  • 10. 
    These expenses do not change with the number of units produced.  Examples might include insurance and rent
    • A. 

      Fixed expenses

    • B. 

      Variable expenses

    • C. 

      Break-even point

    • D. 

      Profit margin

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