Accounting Quiz

What is the action or process of keeping financial accounts called?

• Financial Analysis

• Accounting

• Asset Management

• Investment Banking

Which type of business does not provide tangible goods but works for a customer, such as banking, consulting, cleaning, landscaping, insurance, treatments or transportation?

• Merchandise Business

• Service Business

• Manufacturing Business

• Retail Business

What is an example of a tangible good that a service business might offer?

• Consulting advice

• Hair styling

• Airplane tickets

• Banking services

What does the Accounting Equation provide in the framework of Accepted Accounting Principles (GAAP)?

• A record of all transactions over a certain timeframe

• The basis for all accounting events

• A list of all stockholders in a company

• The total amount of liabilities a company has

What does the left side of the accounting equation (Assets = Liabilities + Stockholders' Equity) represent when abbreviated as Dr. in accounting credits?

• Credits

• Liabilities

• Assets

• Stockholders' Equity

What is typically included in a service business's assets?

• Cash, supplies, and accounts receivable

• Buildings, inventory, and merchandise purchases

• Car wax and area where cars are parked/washed

• Water hoses/automatic washer

What is the Chart of Accounts?

• A record of all transactions which involve cash transactions

• A listing of the names of the accounts a company has identified and made available for recording transactions

• The total amount of liabilities a company has

• The size of the business

What type of balance do liability accounts normally have?

• Debit balances

• Credit balances

• No balances

• Variable balances

Which of the following is not typically listed in the chart of accounts?

• Assets

• Liabilities

• Owner's (stockholders') equity

• Employee personal information

What is the typical sequence of accounts listed in the following order?

• Assets, liabilities, owner's (stockholders') equity

• Owner's (stockholders') equity, liabilities, assets

• Liabilities, assets, owner's (stockholders') equity

• Owner's (stockholders') equity, assets, liabilities