Financial Accounting Quiz

_______ is a financial statement that reports a business's assets, liabilities, and capital on a specific date.

• Balance sheet

• Income Statement

• Expenditure

• Statement of Cash Account

___________________ is defined as a system of collecting, organizing, reporting and interpreting information about those financial transactions of a business.

• Income Statement

• Accounting

• Analyzing

• Debtors

______________ is the process of recording, in sequential order, the daily transactions of a business entity.

• Bookkeeping

• Accounting

• Recording

• Analysis

Anything that has value which provides service to an organization is known as:

• Capital

• Liability

• Assets

• Creditors

The total value used to start the business is called ______________.

• Capital

• Assets

• Loans

• Liabilities

Amounts owing to persons or other organizations is known as _______.

• Capital

• Liability

• Assets

• Creditors

All of the following are internal users of accounting information except:

• Owners

• Employees

• Suppliers

• Managers

Which of the following are fixed assets?

• Cash in hand

• Cash at the bank

• Fixtures & Fittings

• Inventory

Which of the following is a current asset?

• Cash at the bank

• Cash in hand

• Money at the credit union

• All of the above

An external user of account is:

• One who supplies goods on credit

• Someone who purchase goods and services

• Someone who is considering to invest in the business

• All of the above