Accounting Quiz

Which of the following is not a core financial statement?

• The Income Statement

• Statement of Cash Flows

• The Trial Balance

• The Balance Sheet

The income statement, which presents the results of operations, can be prepared in many forms including:

• Single Step Income Statement

• Condensed Income Statement

• Common Sized Income Statement

• All of the above

Which of the following account types increase by debits in double-entry accounting?

• Assets, Expenses, Losses

• Assets, Revenue, Gains

• Expenses, Liabilities, Losses

• Gains, Expenses, Liabilities

Which of the following is true?

• Accounts receivable are found in the current asset section of a balance sheet.

• Accounts receivable increase by credits.

• Accounts receivable are generated when a customer makes payments.

• Accounts receivable become more valuable over time.

A company that uses the cash basis of accounting will:

• Record revenue when it is collected.

• Record revenue when it is earned.

• Record revenue at the same time as accounts receivable.

• Record bad debt expense on the income statement.

What are the main sections on a balance sheet?

• Assets, liabilities, income

• Assets, liabilities, equity

• Assets, liabilities, expenses

• Assets, gains, revenue

How are a company’s financial statements used?

• For internal analysis

• For external negotiation

• For compliance

• All of the above

Which of the following scenarios increases accounts payable?

• A customer fails to pay an invoice.

• A supplier delivers raw materials on credit.

• Office supplies are purchased with cash.

• None of the above

Which of the following must a certified public accountant (CPA) have in-depth knowledge of to pass the CPA licensing exam? (Check all that apply.)

• Accounting software packages

• Auditing

• Derivatives

• International banking laws

When are liabilities recorded under the accrual basis of accounting?

• When incurred

• When paid

• At the end of the fiscal year

• When bank accounts are reconciled