Accounting

What is the primary purpose of accounting in a business?

• To track financial transactions

• To manage human resources

• To develop marketing strategies

• To design products

Which of the following is a fundamental principle of accounting?

• Marketing

• Objectivity

• Creativity

• Innovation

What is the accounting equation?

• Assets = Liabilities + Equity

• Revenue = Expenses + Profit

• Assets = Revenue - Expenses

• Liabilities = Assets + Equity

Which financial statement provides information about a company's financial position at a specific point in time?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• Statement of Retained Earnings

What is the role of a financial auditor?

• To design company logos

• To audit financial statements

• To manage employee relations

• To develop software

Which of the following is considered a current asset?

• Land

• Building

• Inventory

• Equipment

What does GAAP stand for in accounting?

• Generally Accepted Accounting Principles

• Global Accounting and Auditing Practices

• General Accounting and Auditing Procedures

• Governmental Accounting and Auditing Policies

Which accounting method records revenues and expenses when they are incurred, regardless of when cash is exchanged?

• Cash Basis Accounting

• Accrual Basis Accounting

• Tax Basis Accounting

• Managerial Accounting

What is depreciation in accounting?

• Increase in asset value over time

• Decrease in asset value over time

• Increase in liability over time

• Decrease in liability over time

Which of the following is a liability account?

• Accounts Receivable

• Inventory

• Accounts Payable

• Cash