Accounting Quiz

What is the primary purpose of accounting?

• To increase sales

• To organize financial information to make better decisions

• To hire more employees

• To reduce taxes

Which of the following is NOT one of the main activities of accounting?

• Gathering info about financial activities

• Collecting permanent records

• Marketing products

• Preparing financial reports

How long does a typical fiscal period last?

• 6 months

• 1 year

• 2 years

• 3 months

Which step comes first in the accounting cycle?

• Journal

• Ledger

• Transactions Occur

• Trial Balance

What is the purpose of establishing accounting controls?

• To increase profits

• To provide accuracy and promote honesty among employees

• To reduce workload

• To expand business operations

Which type of business buys products at a low price and resells them at a higher price?

• Service

• Merchandising

• Manufacturing

• Not-for-profit

What is the primary purpose of a not-for-profit business?

• To make a profit

• To help society

• To manufacture goods

• To resell products

Which form of business ownership is characterized by having one owner and unlimited liability?

• Partnership

• Corporation

• Sole Proprietorship

• Cooperative

In which type of business are raw materials used to manufacture goods?

• Service

• Merchandising

• Agriculture/Mining

• Not-for-profit

What is a characteristic of a Limited Partnership?

• One partner is a limited/silent partner legally responsible for losses.

• Each partner shares administration, losses, and profits.

• Business is owned by shareholders.

• A clerical job, does routine matters.