Quiz: 1

1. What is the primary purpose of financial accounting?

• Recording financial transactions

• Analyzing market trends

• Forecasting future profits

• Managing human resources

Which financial statement provides a snapshot of a company's financial position at a specific point in time?

• Income Statement

• Statement of Cash Flows

• Balance Sheet

• Statement of Retained Earnings

Which accounting principle requires that businesses should record expenses when they are incurred, regardless of when payment is made?

• Matching Principle

• Revenue Recognition Principle

• Cost Principle

• Expense Recognition Principle

What does the term "GAAP" stand for in accounting?

• Generally Accepted Accounting Principles

• Generally Approved Accounting Practices

• General Accounting Assessment Procedures

• Generalized Accounting Application Protocols

What is the formula for calculating Net Income?

• Revenue - Expenses

• Revenue - Cost of Goods Sold

• Assets - Liabilities

• Equity + Liabilities

Who is the father of Double Entry System of Accounting?

Identify from the Image.

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