What is the primary purpose of accounting?

• To conduct market research

• To manage human resources

• To provide entertainment

• To provide financial information about a business

Which of the following is NOT a party involved in accounting?

• Manufacturers

• Employees

• Government

• Investors

What does double-entry bookkeeping involve?

• Recording transactions in at least two accounts

• Recording transactions without any classification

• Recording transactions in one account

• Only recording cash transactions

What is a financial statement?

• A document for tax purposes

• A snapshot of a corporation’s financial health

• A report on employee performance

• A summary of marketing strategies

Which of the following is NOT one of the four main types of financial statements?

• Cash Flow Statement

• Income Statement

• Sales Report

• Balance Sheet

What does the accounting equation state?

• Assets = Equity - Liabilities

• Assets + Liabilities = Equity

• Assets = Liabilities + Equity

• Assets = Liabilities + Revenue

What is the purpose of a balance sheet?

• To analyze market trends

• To manage inventory

• To track employee performance

• To assess financial health

What does an income statement show?

• Company’s assets and liabilities

• Company’s revenue, expenses, and net income

• Company’s market share

• Company’s cash flow only

Which of the following is a key component of an income statement?

• Equity

• Revenue

• Liabilities

• Assets

What is bookkeeping?

• The process of analyzing financial data

• The process of keeping financial records

• The process of auditing financial statements

• The process of preparing tax returns