Accounting Basics Trivia

What financial statement shows a company's revenues and expenses over a specific period of time?

• Balance Sheet

• Cash Flow Statement

• Income Statement

• Budget Report

Which financial statement reports a company's assets, liabilities, and shareholders' equity at a specific point in time?

• Balance Sheet

• Profit and Loss Statement

• Cash Flow Statement

• Income Statement

In accounting, what is the term used to describe the left side of a T-account?

• credit

• asset

• revenue

• debit

What is the fundamental accounting equation that represents the relationship between assets, liabilities, and equity?

• Assets = Liabilities - Equity

• Assets - Liabilities = Equity

• Assets + Liabilities = Equity

• Assets = Liabilities + Equity

What type of account increases with a debit entry?

• Liability account

• Asset account

• Expense account

• Equity account

What is the accounting principle that requires assets to be recorded at their original cost?

• Conservatism Principle

• Fair Value Principle

• Historical Cost Principle

• Replacement Cost Principle

What is the term for the process of systematically recording, measuring, and communicating financial information about a business?

• Bookkeeping

• Economics

• Marketing

• Accounting

Which financial statement is also known as the statement of financial position?

• Profit and Loss Statement

• Cash Flow Statement

• Income Statement

• Balance Sheet

In accounting, what is the term used to describe the right side of a T-account?

• asset

• credit

• debit

• balance

What is the term for an entry that decreases an asset or expense account?

• debit

• increase

• credit

• liability