Quiz on the Accounting Cycle and Business Organizations

What is the first step in the accounting cycle?

• Prepare final accounts

• Make adjusting entries

• Identify and analyze transactions

• Prepare unadjusted trial balance

Which type of business organization is owned by one person?

• Corporation

• Sole Proprietorship

• Cooperative Society

• Partnership

What document is prepared after making adjusting entries?

• Adjusted trial balance

• Final accounts

• Closing trial balance

• Source documents

In a partnership, what is the formal agreement that outlines the rights and obligations of each partner called?

• Deed of Partnership

• Operating Agreement

• Partnership Charter

• Business License

What type of financial statement do corporations prepare?

• Income and Expenditure account

• Balance sheet only

• Trading and profit and loss account

• Final accounts including income statement

What is the main objective of a cooperative society?

• Increase shareholder value

• Compete with other businesses

• Render services to its members

• Maximize profits

Which of the following is NOT a type of business organization mentioned?

• Sole Proprietorship

• Limited Liability Company

• Cooperative Society

• Joint Venture

What is the purpose of financial statements?

• To prepare tax returns

• To inform stakeholders about financial condition

• To increase sales

• To manage employee payroll

What type of organization is formed for charitable purposes?

• Corporation

• Non-Profit Organization

• Sole Proprietorship

• Partnership

What is the last step in the accounting cycle?

• Prepare final accounts

• Journalize and post-closing entries

• Make adjusting entries

• Prepare adjusted trial balance