accounting quiz

accounting quiz, basics,

1. Accounting and
Finance Terms
Quiz
Write the correct
answers on a clean
sheet of paper.
Numbered 1-15.

2. 1.ASSETS = LIABILITIES + OWNER’S
EQUITY.
a.Income Statement
b.Budget
c.Accounting Equation
1.Referred to as “borrow for personal
use”
a.Assets
b.Drawings
c.Owner’s Equity

3. 3.Money that a company earns
a.Revenue
b.Liabilities
c.Payroll
3.When expenses > income
a.Profit
b.Net Pay
c.Loss

4. 5.Costs of maintaining and operating a
business
a.Revenue
b.Expenses
c.Budget
5.Money owed by the business (debts,
accounts payable)
a.Income
b.Liabilities
c.Profit

5. 7.Professional who records, prepares,
examines, and summarizes financial
information
a.Accountant
b.Auditor
c.Insurance Representative
7.Anything of of value that is owned by the
business
a.Revenue
b.Income
c.Assets

6. 9.Certified Public Accountant
a.Stock Broker
b.Bank Teller
c.CPA
9.The recording of each financial
transaction of a business in an orderly
systematic function
a.Accounting
b.Budgeting
c.Financing

7. 11.A money management plan (lists what
you have and what you must spend)
a.Accounting
b.Balance Sheet
c.Budget
11.When income > expenses
a.Liabilities
b.Loss
c.Profit

8. 13.Net worth of the business
a.Assets
b.Owner’s Equity
c.Expenses

9. Accounting Quiz Key
•How did you do on the
quiz???

10. Key
•1 C—Accounting Equation
•2 B—Net Pay
•3 A—Revenue
•4 C–Loss
•5 B—Expenses
•6 B—Liabilities
•7 A—Accountant
•8 C—Assets

11. Key, continued
•9 C—CPA
•10 A—Accounting
•11 C—Budget
•12 C—Profit
•13 B—Owner’s Equity

22. Which principle/guideline
justifies a company violating an
accounting principle because the
amounts are immaterial?
•Conservatism
• Full Disclosure
• Materiality

23. Materiality

24. Which principle/guideline is
associated with the assumption
that the company will continue
on long enough to carry out its
objectives and commitments?
•Economic Entity
• Going Concern
• Time Period

25. •Going Concern

26. Accountants might recognize losses but
not gains in certain situations. For
example, the company might write-down
the cost of inventory, but will not write-
up the cost of inventory. Which
principle/guideline is associated with this
action?•Conservatism
• Materiality
• Monetary Unit

27. •Conservatism

28. Accrual accounting is based on
this principle/guideline.
•Cost
• Full Disclosure
• Matching

29. •Matching

30. Generally when an expense is
involved in a transaction, an
expense will be
•Debited
• Credited

31. •Debited