This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accounting > Accounting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 25 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The standards and rules that accountants follow while recording and reporting financial activities. A) GAAP. B) GAGA. C) GASP. D) GAPA. Show Answer Correct Answer: A) GAAP. 2. Which of the following is true of the credit and debit columns in the adjusted trial balance? A) The debit should be larger than the credit. B) The credit should be larger than the debit. C) The credit and debit should match. D) Together they should equal the owner's equity. Show Answer Correct Answer: C) The credit and debit should match. 3. Which of the following it is assumed that a business will continue to expand and operate in the future refer to ..... A) Accounting period. B) Duality. C) Consistency. D) Going concern. Show Answer Correct Answer: D) Going concern. 4. Information provided by a business:Expenses:R150 000Current income:R140 000 A) Loss = R10 000. B) Assets = R140 000. C) Profit = R10 000. D) Liabilities = R150 000. Show Answer Correct Answer: A) Loss = R10 000. 5. Review whether the financial statements are presented fairly and in compliance with accounting standards A) Management Accounting. B) Financial Accounting. C) Auditing. D) None of above. Show Answer Correct Answer: C) Auditing. 6. Which one is the internal user? A) Potential investor. B) Management of a company. C) Creditor. D) None of above. Show Answer Correct Answer: B) Management of a company. 7. Amount earned by performing services or selling goods to customers A) Liability. B) Revenue. C) Expenses. D) Withdrawal. Show Answer Correct Answer: B) Revenue. 8. A check endorsement that transfers ownership to anyone that has possession of the check is called a: A) Transfer endorsement. B) Restrictive endorsement. C) Special endorsement. D) Blank endorsement. Show Answer Correct Answer: D) Blank endorsement. 9. What can result from a failure to provide accurate financial statements to a bank? A) The bank may fail due to poor planning. B) The bank may experience an increase in defaulted loans. C) The bank may appear more attractive than it should. D) The bank may lose trust in the government. Show Answer Correct Answer: B) The bank may experience an increase in defaulted loans. 10. The branch of accounting that is primarily involved in the preparation of financial statement is ..... A) A. Management advisory services. B) Tax Accounting. C) C. Cost Accounting. D) B. Financial Accounting. Show Answer Correct Answer: D) B. Financial Accounting. 11. Any amounts owed by a business and reported on the balance sheet are referred to as ..... A) Profit. B) Liabilities. C) Expenses. D) Assets. Show Answer Correct Answer: B) Liabilities. 12. Statement of a firm's financial position on a particular date including assets, liabilities, and owner's equity A) Mission Statement. B) Budget. C) Balance Sheet. D) Retail. Show Answer Correct Answer: C) Balance Sheet. 13. The ..... is the senior manager who is responsible for the overall financial health of a company. A) Treasurer. B) Chief operating officer. C) Chief financial officer. D) Controller. Show Answer Correct Answer: C) Chief financial officer. 14. Businesses use the information collected through the accounting process to prepare accurate: A) Promissory notes. B) Purchase orders. C) Balance sheets. D) Inventory forms. Show Answer Correct Answer: C) Balance sheets. 15. Ghanshyam is a furniture dealer. Which one of the following will not be recorded in his books? A) Dinning table of Rs15, 000 given to his friend as gift. B) Purchase of Timber for Rs10, 000. C) Sofa set worth Rs20, 000 taken to his home. D) Sale of household furniture for Rs20, 000. Show Answer Correct Answer: B) Purchase of Timber for Rs10, 000. 16. All of the following are liabilities except: A) Salaries Payable. B) Accounts Payable. C) Notes Payable. D) Revenue Earned. Show Answer Correct Answer: D) Revenue Earned. 17. A number of users would broadly agree that faithful representation has been achieved. Which qualitative characteristic of financial information is described by this statement? A) Comparability. B) Understandability. C) Verifiability. D) Relevance. Show Answer Correct Answer: C) Verifiability. 18. Which is NOT a basic type of business ownership? A) Company. B) Sole proprietorship. C) Partnership. D) Retail. Show Answer Correct Answer: D) Retail. 19. Information is based on actual costs incurred in transactions. A) Full Disclosure. B) Business Entity Concept. C) Matching Principle. D) History Cost Principle. Show Answer Correct Answer: D) History Cost Principle. 20. Rob is a CPA who inspects the accuracy and consistency of financial statements and certifies the accounts done by the accountants of his clients. Which branch of accounting is Rob doing? A) Tax accounting. B) Management Accounting. C) Auditing. D) Financial accounting. E) Cost Accounting. Show Answer Correct Answer: C) Auditing. 21. Drive Me Inc. is preparing to disclose publicly the amount of money it has made from issuing stocks. A) Management Accounting. B) Financial Accounting. C) Tax Accounting. D) None of above. Show Answer Correct Answer: B) Financial Accounting. 22. A record of all the activity in a bank account is called a: A) Deposit slip. B) Bank invoice. C) Bank statement. D) Receipt. Show Answer Correct Answer: C) Bank statement. 23. Method of determining the minimum sales volume needed to cover all costs A) Budget. B) Sherman Act. C) Stamp Act. D) Break-Even Analysis. Show Answer Correct Answer: D) Break-Even Analysis. 24. In the US, ..... serves as a guide for reporting and interpreting accounting information. A) FASB. B) GAAP. C) IRS. D) None of above. Show Answer Correct Answer: B) GAAP. 25. Cost of goods manufactured is determined by A) Human resource accounting. B) Cost accounting. C) Managerial accounting. D) Financial accounting. Show Answer Correct Answer: B) Cost accounting. 26. Which of the following are functions of abookkeeper? I. AnalysingII. InterpretingIII. PostingIV. Recording A) II and III only. B) III and IV only. C) I, II and III only. D) I, II and IV only. Show Answer Correct Answer: D) I, II and IV only. 27. What accounting record would summarize a business's profit or loss for a previous year? A) Balance sheet. B) Bank statement. C) Income statement. D) Inventory record. Show Answer Correct Answer: C) Income statement. 28. The main purpose of accounting is A) To account for money so it will not be lost. B) To provide information that is useful in making economic decisions. C) To safeguard the assets of a company. D) To provide a clear view of the state of the industry's economy. Show Answer Correct Answer: B) To provide information that is useful in making economic decisions. 29. You earn interest and your money is available after you have given the required period of notice to the bank. A) Call deposit. B) Notice deposit. C) Fixed deposit. D) Cheque deposit. Show Answer Correct Answer: B) Notice deposit. 30. In Accounting, Goods is defined as: A) Items which are purchased for charity. B) Items which are purchased for resale. C) Items which purchased for own consumption. D) Items without any defect. Show Answer Correct Answer: B) Items which are purchased for resale. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books