Accounting Basics Quiz

Which one of the following items is not found on a Balance Sheet?

• Cash

• Gross Profit

• Assets

• Liabilities

Which accounting system most accurately reflects profitability?

• Cash Accounting

• Flow of Funds Accounting

• Accrual Accounting

An account receivable is:

• An Asset

• Owner’s Equity

• A Liability

Which of the following is most important to the daily operations of a business?

• Assets

• Retained Earnings

• Cash

When people speak about the bottom line, they are referring to:

• Net Profit

• Gross Margin

• Gross Profit

A prepaid expense is

• an Asset

• Owner's Equity

• a Liability

Which would you find on an Income Statement?

• Expense

• Fixed Asset

• Liability

Which of the following expenses does not affect your cash position in running a business

• Lease Expense

• Advertising Expense

• Depreciation Expense

Which of the following is a basic accounting equation?

• Net Worth = Assets + Profits

• Gross Profit - Sales. = Gross Profit

• Assets = Liabilities + Owner's Equity

What is the term for the raw materials used in producing a product?

• Inventory

• Assets

• Liabilities

• Equity