Accounting Quiz

What is the process of identifying, systematic recording, summarizing, analyzing, and interpretation of financial reports of a business?

• Auditing

• Taxation

• Accounting

• Budgeting

Which concept in accounting assumes that every business is carried on continuing for an indefinite period?

• Cost Concept

• Going Concern Concept

• Business Entity Concept

• Money Measurement Concept

What is the formula to calculate depreciation on Straight Line Method?

• Annual Depreciation Expense = Cost of fixed asset - Residual value X Actual production / Estimated total production

• Annual Depreciation Expense = Cost of fixed asset - Residual value X Actual production / Estimated total production

• Annual Depreciation Expense = Cost of a fixed asset - Residual value / Useful life of the asset (Years)

• SYD Depreciation = Depreciable Base value X (Remaining useful life/Sum of the year's digits)

Which type of account is used to record the incomes, expenses, losses, and gains of a business concern?

• Personal Account

• Nominal Account

• Fictitious Account

• Real Account

What is the purpose of a Trading Account in accounting?

• To record all credit sales of merchandise

• To summarise the assets and liabilities of a business

• To indicate the result of buying and selling of goods, i.e. the gross profit or gross loss on trading

• To determine the net profit earned or net loss incurred during a particular period

Which method of depreciation is based on the assumption that assets are generally more productive when they are new, and their productivity decreases as they become old?

• Sum-of-years-digits Method

• Annuity Depreciation

• Straight-line Depreciation Method

• Diminishing Balance Method

What is the purpose of a Control Account in accounting?

• To summarise the assets and liabilities of a business

• To determine the net profit earned or net loss incurred during a particular period

• To keep the general ledgers like Asset Account nice and clean

• To record all credit sales of merchandise

Which type of account is used to record the property or assets and cash belonging to a business concern?

• Fictitious Account

• Personal Account

• Real Account

• Nominal Account

What is the purpose of a Profit & Loss Account in accounting?

• To record all credit sales of merchandise

• To summarise the assets and liabilities of a business

• To indicate the result of buying and selling of goods, i.e. the gross profit or gross loss on trading

• To determine the net profit earned or net loss incurred during a particular period

Which method of depreciation results in a more accelerated write-off than the straight-line method?

• Sum-of-years-digits Method

• Straight-line Depreciation Method

• Diminishing Balance Method

• Annuity Depreciation