Fundamentals of Accounting Quiz

What accounting is NOT?

• A service activity

• Its function is to provide quantitative characteristics

• It is primarily financial in nature

• About economic entity that is intended to be useful in making economic decisions.

The two primary users of accounting information are:

• Internal

• External

• Both internal and external

• Neither internal nor external

Which of the following is not an external user of accounting information?

• Customers

• Employees

• Government

• Creditors

• President/CEO of the Corporation

Managers are considered external and internal users of financial information.

• True

• False

Which of the following is not a form of business organization?

• Sole Proprietorship

• Partnership

• Cooperatives

• Government Bureau

Which of the following is false?

• Assets = Liabilities + Equity

• Assets - Liabilities = Equity

• Assets - Equity = Liabilities

• Assets + Equity = Liability

This refer to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board.

• Generally Accounting Principles

• Generally Accepted Accounting Principles

• Generally Accounting and Auditing Principles

• General Accepted Accounting Principles

The two (2) qualitative characteristics of accounting are

• Fundamental and Enhancing

• Relevant and Faithful Representation

• Comparability and Understandability

• Completeness and Accuracy

Which of the following is NOT an element of accounting?

• Assets

• Liabilities

• Capital

• Drawings

• Revenue

How much is the total assets of a Company that has capital of 100,000 and loans payable of 2,000,000 and Cash of 200,000?

• 1,900,000

• 2,100,000

• 2,200,000

• 2,000,000