Financial Accounting Quiz

20 Questions

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Financial Accounting Quizzes & Trivia

General Quiz on Finacial Accounting Knowledge for students at basic level. By taking this Quiz,surely you will feel somewhat better than before as you will gain some knowledge INSHA'ALLAH.


Questions and Answers
  • 1. 
    Financial accounting is focused on the __________ financial statements of a company.
    • A. 

      External

    • B. 

      Internal

  • 2. 
    Financial statements report the fair market value of a company.
    • A. 

      True

    • B. 

      False

  • 3. 
    Large corporations must follow the ___________ basis of accounting..
  • 4. 
    Corporations whose stock is publicly traded must have their financial statements________ by independent certified public accountants.
  • 5. 
    The U.S. government agency with authority over the financial reporting requirements of publicly traded corporations is the _______.
    • A. 

      AICPA

    • B. 

      FASB

    • C. 

      IRS

    • D. 

      SEC

  • 6. 
    The non-government organization that researches and develops new accounting standards is the _______.
    • A. 

      AICPA

    • B. 

      FASB

    • C. 

      IRS

    • D. 

      SEC

  • 7. 
    The acronym for the common rules and standards that companies must follow when preparing its external financial statements is ______.
  • 8. 
    SEC is the acronym for ____________ ____ ___________ _______________.
  • 9. 
    FASB is the acronym for __________ ___________ ___________ ________.
  • 10. 
    GAAP is the acronym for _________ _________ ___________ ___________.
  • 11. 
    _________ entry bookkeeping will result in at least two accounts being involved in every transaction.
  • 12. 
    Every transaction will have one account being credited and one account being___________.
  • 13. 
    The accounting equation is Assets = ___________ + Stockholders' (or Owner's) Equity.
  • 14. 
    Matching, cost, and full disclosure are examples of the fundamental or basic accounting______________.
  • 15. 
    The profitability of a company for a specified period of time is reported on the___________ statement.
  • 16. 
    The main components or elements of the income statement are ___________, expenses, gains, and losses.
  • 17. 
    Prepaid insurance is reported as an _________ on a company's balance sheet.
  • 18. 
    The word "___________" is often in the title of liability accounts.
  • 19. 
    The statement of cash flows explains the changes in cash and cash______________ during the specified time interval.
  • 20. 
    The first section of the statement of cash flows is the ____________ activities.