Accounting Principles and Auditing Quiz

Quiz
•
Business
•
11th Grade
•
Hard
Tertia Coffee
Used 1+ times
FREE Resource
8 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
According to the business entity principle, the financial affairs of a business must be kept separately from the owner. What does this principle require in terms of bank accounts?
The business and owner can share the same bank account
The business does not need a bank account
A separate bank account must be opened for the business
The owner's personal bank account can be used for business transactions
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the historical cost principle require in terms of valuing assets in the statement of financial position?
Assets are valued at their current market price
Assets are valued at their expected future price
Assets are valued at their original purchase price
Assets are not valued in the financial statements
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which principle assumes that the business will continue operating in the foreseeable future when preparing financial statements?
Principle of materiality
Prudence principle
Going concern principle
Matching principle
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the matching principle require in terms of reporting expenses and income?
Expenses must be reported before income
Income must be reported before expenses
Expenses and income must be reported in the same period
Expenses and income must be reported in different periods
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the main purpose of an internal audit within a business?
To monitor the efficacy of processes and controls
To make provision for any potential losses
To certify the financial statements of the business
To conduct an examination by an independent accountant
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the purpose of the principle of materiality in financial reporting?
To ensure that all transactions are recorded accurately
To disclose all relevant information to users of financial statements
To only report information that could influence the economic decisions of users
To present financial information in a clear and understandable manner
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does the prudence principle impact the valuation of assets in financial statements?
It requires assets to be valued at their original purchase price
It allows for assets to be valued at their expected future price
It mandates assets to be valued at their current market price
It necessitates assets to be valued at the lower of cost or net realizable value
8.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the significance of the going concern principle in financial reporting?
It assumes that the business will cease operations in the near future
It requires the business to only report information that is material
It assumes that the business will continue operating in the foreseeable future
It mandates the business to disclose all relevant information to users
Similar Resources on Wayground
10 questions
Store Lesson 6 Financial

Quiz
•
9th - 12th Grade
11 questions
Accounting Principles & Accounting Equation

Quiz
•
11th Grade - University
10 questions
Accounting Rules

Quiz
•
9th - 12th Grade
10 questions
Accounting Concepts and Principles

Quiz
•
11th - 12th Grade
10 questions
11 Accounting - Lesson 5

Quiz
•
11th Grade
10 questions
Business Characteristics

Quiz
•
8th - 12th Grade
10 questions
Ethics in Business (Vocab) icev

Quiz
•
9th - 12th Grade
13 questions
BF 4.01 Accounting and Finance

Quiz
•
11th Grade
Popular Resources on Wayground
55 questions
CHS Student Handbook 25-26

Quiz
•
9th Grade
10 questions
Afterschool Activities & Sports

Quiz
•
6th - 8th Grade
15 questions
PRIDE

Quiz
•
6th - 8th Grade
15 questions
Cool Tool:Chromebook

Quiz
•
6th - 8th Grade
10 questions
Lab Safety Procedures and Guidelines

Interactive video
•
6th - 10th Grade
10 questions
Nouns, nouns, nouns

Quiz
•
3rd Grade
20 questions
Bullying

Quiz
•
7th Grade
18 questions
7SS - 30a - Budgeting

Quiz
•
6th - 8th Grade
Discover more resources for Business
20 questions
Lab Safety and Lab Equipment

Quiz
•
9th - 12th Grade
20 questions
ROAR Week 2025

Quiz
•
9th - 12th Grade
20 questions
Getting to know YOU icebreaker activity!

Quiz
•
6th - 12th Grade
37 questions
SJHS Key Student Policies

Quiz
•
11th Grade
12 questions
Macromolecules

Lesson
•
9th - 12th Grade
13 questions
Cell Phone Free Act

Quiz
•
9th - 12th Grade
8 questions
STAR Assessment Practice Questions

Quiz
•
9th - 12th Grade
28 questions
Rules and Consequences Part A

Quiz
•
9th - 12th Grade