Accounting and Business Management Quiz

What is the primary function of accounting?

• Recording Bookkeeping

• Sales Forecasting

• Human Resource Management

• Marketing Strategies

Which of the following is NOT a type of business activity?

• Service Business

• Merchandising Type

• Manufacturing Type

• Investment Banking

What does a Balance Sheet show?

• Financial condition of the business at a given date

• Profit and loss over a period

• Cash flow during a period

• Changes in owner's equity

Which of the following is a form of income statement?

• Single Step Income Statement

• Cash Flow Statement

• Trial Balance

• Comprehensive Income Statement

What is the definition of Current Assets?

• Intangible assets

• Assets that are easily converted into cash within one year

• Long-term investments

• Fixed assets like buildings and machinery

Which document evidences the receipt of cash?

• Official Receipt

• Promissory Note

• Cash Voucher

• Purchase Invoice

What is the purpose of journalization?

• To record business transactions in terms of debit and credit

• To calculate taxes

• To prepare financial statements

• To analyze business performance

What is a Trade Discount?

• A fee charged for late payments

• Deductions from the list price to encourage bulk purchases

• Deductions from the invoice cost for early payment

• A tax on sales

Which of the following is a component of owner's equity?

• Accounts Payable

• Original Capital

• Sales Revenue

• Current Liabilities

What does the term 'accrued interest income' refer to?

• Interest paid on loans

• Interest earned but not yet collected

• Interest received in cash

• Interest on investments