Key Accounting Concepts Quiz

What is defined as money or possessions used to start a business?

• Income

• Capital

• Expenses

• Assets

Which of the following is an example of an asset?

• Rent Expense

• Loans

• Salary

• House / Building

What is the difference between income and expenses when income is more than expenses?

• Savings

• Profit

• Loss

• Budget

What is the term for a financial action between two parties where money or something of value is exchanged?

• Capital

• Liabilities

• Transaction

• Banking

Which of the following is considered a liability?

• Groceries

• Interest Received

• Clothing Account

• Rent Income

Which of the following is an example of a fixed expense?

• School Fees

• Groceries

• Dining Out

• Entertainment

What is the term for the process of planning, organizing, and controlling financial activities?

• Accounting

• Marketing

• Management

• Production