Accounting Basics Quiz

Book-keepers are people who prepare financial statements for a company.

• TRUE

• FALSE

Double-entry book-keeping means that all transactions are recorded in two notebooks.

• TRUE

• FALSE

Taxes payable and interests payable are long-term liabilities.

• TRUE

• FALSE

Bookkeeping is writing down the details of the daily business transactions.

• TRUE

• FALSE

Sales and expenditure are two elements of the cashflow statement.

• TRUE

• FALSE

The income statement tells you how much the company receives from sales of goods.

• TRUE

• FALSE

Assets , for example, buildings, machines are intangible assets.

• TRUE

• FALSE

The two sides of a balance sheet always have the different total.

• TRUE

• FALSE

The accounting equation can be rewritten as Assets – Liabilities = Net Assets.

• TRUE

• FALSE

Company profit is usually divided into three ways: into dividends, production cost and earnings.

• TRUE

• FALSE