Second Round | Brain of Accountants 3.0

Who was named as ‘Father of Accounting’?

• Ralph Raimondo

• Luca Pacioli

• John Haughey

• Luke Befolci

Accounting is the language of business

• True

• False

Cash used by an owner to start a business is called

• Loan

• Drawings

• Investment

• Capital

Assets are always equal to

• Capital

• Liabilities

• Liabilities + Capital

• Liabilities + Accounts Payable

The excess of assets over liabilities is

• Capital

• Profit

• Equity

• Accounts payable

Financial accounting reports include

• profit and loss account

• directors and auditors report

• balance sheet

• all of the above

Expenses paid by a business decrease

• Cash

• Capital

• Cash and capital

• Capital and accounts payable

Tick all of the correct answers. In the accounting cycle

• A trial balance is prepared after journal entries have been posted

• Transactions are posted before they are journalized

• The retained earnings account is not shown as an up-to-date figure in the trial balance

• Journal entries are posted to the appropriate ledger accounts

Prepaid expenses are

• Classified as liabilities on the statement of financial position

• Assets that represent prepayments of future expenses

• Payments made for products and services that do not ever expire

• Decreases in equity

A credit is used to record

• A decrease in an asset account

• An increase in an expense account

• A decrease in an unearned revenue account

• A decrease in a revenue account