Financial Accounting Basics

20 Questions | Total Attempts: 66

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Financial Accounting Quizzes & Trivia

Basic concepts


Questions and Answers
  • 1. 
    Identify whether this item belongs to the Income Statement (IS), Balance Sheet (BS), Statement of Retained Earnings (SRE), or Statement of Cash Flows (SCF). Some items may appear in more than one statement.  Dividends
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 2. 
    Salary Expense
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 3. 
    Inventory
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 4. 
    Sales revenue
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 5. 
    Retained Earnings
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 6. 
    Operating Cash Flows
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 7. 
    Net Income or Net Loss
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 8. 
    Cash
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 9. 
    Cash Flows from Financing Activities
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 10. 
    Accounts Payable
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 11. 
    Common Stock
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 12. 
    Interest Revenue
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 13. 
    Long-Term Debt
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 14. 
    Increase/decrease in cash
    • A. 

      IS

    • B. 

      BS

    • C. 

      SRE

    • D. 

      SCF

  • 15. 
    Compute the missing amount in the accounting equation. Include up to the tenth decimal place (e.g. 12.2) Assets: ? Liabilities: 8 SHE: 6.5
  • 16. 
    Compute the missing amount in the accounting equation.  Assets: 48 Liabilities: 11 SHE: ?
  • 17. 
    Compute the missing amount in the accounting equation. Assets: 269 Liabilities: ? SHE: 19
  • 18. 
    This refers to the consumption of resources in the course of operating a business.
    • A. 

      Receivable

    • B. 

      Expense

    • C. 

      Owner's Equity

    • D. 

      Normal balance

  • 19. 
    Net income is equal to cash.
    • A. 

      True

    • B. 

      False

  • 20. 
    A company earned $60,000 in revenues from sales to customers on account. Which ledgers/t-accounts will be affected?
    • A. 

      Cash (Debit) - Sales Revenue (Credit)

    • B. 

      Cash (Debit) - Accounts Payable (Credit)

    • C. 

      Accounts Receivable (Debit) - Sales Revenue (Credit)

    • D. 

      Accounts Payable (Debit) - Sales Revenue (Credit)