Accounting Quiz

Which type of accountants provide services like auditing, tax advice, and management consulting to client organizations?

• Public Accountants

• Private Accountants

• Forensic Accountants

• Management Accountants

What is the fundamental accounting equation that must remain in balance after every transaction?

• Assets + Liabilities = Owners' Equity

• Assets = Liabilities + Owners' Equity

• Assets - Liabilities = Owners' Equity

• Assets = Liabilities - Owners' Equity

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

• Balance Sheet

• Income Statement

• Statement of Cash Flows

• Financial Ratios

What are the standard guidelines and principles for preparing financial statements in the U.S. called?

• Financial Accounting Standards Board (FASB)

• Certified Public Accountants (CPAs)

• International Financial Reporting Standards (IFRS)

• Generally Accepted Accounting Principles (GAAP)

Which ratio assesses the ability to repay debt by measuring short-term solvency?

• Price-Earnings (P/E) Ratio

• Earnings per Share

• Debt-to-Equity Ratio

• Current Ratio

What is crucial for maintaining public trust in accounting information?

• Full Disclosure

• Profitability Ratios

• Solvency Ratios

• Ethical conduct

Which independent body aims to bring consistency and comparability in financial reporting across countries?

• Institute of Management Accountants (IMA)

• Financial Accounting Standards Board (FASB)

• International Accounting Standards Board (IASB)

• Certified Fraud Examiner (CFE)

What is the accounting principle that states when revenues should be recorded in the books?

• Full Disclosure

• Solvency Ratios

• Revenue Recognition

• Profitability Ratios

Which type of accountants use accounting concepts and investigative skills to uncover financial crimes?

• Public Accountants

• Forensic Accountants

• Management Accountants

• Private Accountants

Which financial statement summarizes the revenues and expenses over a period like a year or quarter?

• Income Statement

• Balance Sheet

• Financial Ratios

• Statement of Cash Flows