Accounting Quiz

Who is known as the Father of Modern Accounting?

• Adam Smith

• Luca Pacioli

• Leonardo Fibonacci

• Charles Babbage

Which financial statement shows a company's profitability?

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Equity Statement

Which branch of accounting focuses on decision-making for managers?

• Financial Accounting

• Management Accounting

• Tax Accounting

• Auditing

What does the accrual concept state?

• Record income only when cash is received.

• Record expenses only when paid.

• Record income and expenses when earned or incurred.

• Record transactions only at the end of the year.

Which of the following is not a current asset?

• Cash

• Prepaid Rent

• Land

• Accounts Receivable

Which principle ensures financial statements are prepared consistently every year?

• Going Concern

• Consistency Concept

• Monetary Concept

• Cost Concept

Which of these is a liability?

• Furniture

• Bonds Payable

• Revenue

• Accrued Income

Which field of accounting is concerned with taxes?

• Cost Accounting

• Tax Accounting

• Financial Accounting

• Public Accounting

Who are internal users of accounting information?

• Investors

• Management

• Creditors

• Customers

What is the formula for Net Income?

• Assets - Liabilities

• Revenue - Expenses

• Owner's Equity - Liabilities

• Income - Purchases