Accounts Exam

21 Questions

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Account Quizzes & Trivia

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

      True

    • B. 

      False

  • 5. 
    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

  • 6. 
    All expenses and losses always having..?
    • A. 

      Credit balance

    • B. 

      Debit balance

    • C. 

      Exact difference balance

    • D. 

      Balance entered in voucher

  • 7. 
    Tracking number is used in  _____________transaction
    • A. 

      Bank

    • B. 

      Cash

    • C. 

      All

    • D. 

      Stock item

  • 8. 
    ___________ is the function key for changing date in Tally
    • A. 

      F1

    • B. 

      F2

    • C. 

      F3

    • D. 

      F4

  • 9. 
    Balance sheet display...
    • A. 

      Entire summary of the all ledger accounts

    • B. 

      Balances of all individual account

    • C. 

      Bank and cash Balances

    • D. 

      Exact financial position of the business on specific date

  • 10. 
    Tally is...
    • A. 

      Package, which maintains accounts only

    • B. 

      Which maintains accounts with inventory records

    • C. 

      Which display the detail report trial balance, balance sheet etc

    • D. 

      All are correct

  • 11. 
    Which of the following is not a account type
    • A. 

      Personal Accounts

    • B. 

      Real Accounts

    • C. 

      Occasional account

    • D. 

      Nominal account

  • 12. 
    • A. 

      Sales of products or services

    • B. 

      Owners' claims to resources

    • C. 

      Resources owned

    • D. 

      Costs of selling products or services

    • E. 

      Amounts owed

  • 13. 
    What's revenue?
    • A. 

      Costs of selling products or services

    • B. 

      Expense to run business

    • C. 

      Sales of products or services

    • D. 

      Distributions to stockholders

    • E. 

      Assets purchased to run business

  • 14. 
    What are expenses?
    • A. 

      Costs of selling products or services

    • B. 

      Sales of products or services

    • C. 

      Amounts owed

    • D. 

      Distributions to stockholders

    • E. 

      Owners' claims to resources

  • 15. 
    • A. 

      Assets - liabilities = stockholders' equity

    • B. 

      Assets + liabilities = stockholders' equity

    • C. 

      Liabilities - stockholders' equity = assets

  • 16. 
    A trial balance will not balance if
    • A. 

      A $500 payment on accounts payable is debited to Accounts Payable for $50 and credited to Cash for $50

    • B. 

      A $350 payment of rent is debited to Rent Expense for $350 and credited to Cash for $35

    • C. 

      A transaction is not posted at all

    • D. 

      A journal entry is posted twice

  • 17. 
    Recognizing expense results in a(n)
    • A. 

      Decrease to the expense account

    • B. 

      Increase to the expense account

    • C. 

      Increase in retained earnings

    • D. 

      Decrease to the revenue account

  • 18. 
    7. The amount of cash paid in acquiring an asset is called what?
    • A. 

      Present Value

    • B. 

      Historical Value

    • C. 

      Net Realizable Value

    • D. 

      Current Replacement Cost

  • 19. 
    8. Which is an example of an intangible asset?
    • A. 

      Cash

    • B. 

      Tools & Equipment

    • C. 

      Supplies

    • D. 

      Patent

  • 20. 
    9. Earnings that a firm realizes in excess of dividends are called what?
    • A. 

      Income Statement

    • B. 

      Revenues

    • C. 

      Retained Earnings

    • D. 

      Expenses

  • 21. 
    10. A ____ lists each of the accounts in the general ledger with its balance as of a particular date. What is it?
    • A. 

      Statement Of Retained Earnings

    • B. 

      Balance Sheet

    • C. 

      Trial Balance

    • D. 

      General Journal