Accounting Concepts Quiz

What is the first step in the accounting process?

• Summarizing

• Identifying

• Measuring

• Classifying

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

• Investment Transactions

• Barter Transactions

• Credit Transactions

• Cash Transactions

What does summarizing in accounting provide?

• Tax returns

• Financial statements

• Inventory lists

• Detailed transaction records

Which branch of accounting focuses on cost control?

• Management Accounting

• Tax Accounting

• Financial Accounting

• Cost Accounting

What is the primary purpose of financial accounting?

• To classify assets and liabilities

• To record daily transactions

• To provide a profit and loss statement

• To assist in managerial decisions

Which of the following is an example of a tangible asset?

• Goodwill

• Trademarks

• Patent rights

• Furniture

What is a limitation of accounting mentioned in the text?

• It records all transactions

• It is flexible in nature

• It provides exact information

• It does not record non-monetary transactions

What is the main difference between bookkeeping and accounting?

• Bookkeeping includes summarizing

• Accounting is only about recording

• Bookkeeping is a routine task, while accounting involves interpretation

• There is no difference

Which type of transaction involves immediate cash payment?

• Credit Transaction

• Barter Transaction

• Cash Transaction

• Non-cash Transaction

What is the purpose of analyzing financial statements?

• To summarize transactions

• To draw meaningful conclusions about the business

• To classify assets

• To record transactions