Accounting Quiz YPR

Which of the following is NOT a primary function of accounting?

• Recording transactions

• Preparing financial statements

• Forecasting future sales

• Managing human resources

The fundamental accounting equation is:

• Assets = Liabilities + Owner’s Equity

• Assets + Liabilities = Owner’s Equity

• Revenue - Expenses = Net Profit

• Owner’s Equity = Assets - Liabilities

Which financial statement shows a company's financial position at a specific point in time?

• Income Statement

• Statement of Cash Flows

• Balance Sheet

• Statement of Retained Earnings

Which accounting principle states that revenue should be recognized when earned?

• Matching principle

• Accrual principle

• Cost principle

• Consistency principle

The entity concept in accounting means:

• A business is separate from its owner

• Personal transactions can be mixed with business transactions

• A company must report its financial statements in cash terms only

• The company’s expenses are irrelevant to financial reports

Which of the following is NOT a qualitative characteristic of financial statements?

• Relevance

• Faithful representation

• Comparability

• Profitability

What does the Going Concern principle assume?

• Business operations will cease soon

• Business will continue indefinitely

• Business must sell all assets annually

• Business must always operate at a profit

Which financial statement explains the changes in a company’s retained earnings?

• Income Statement

• Balance Sheet

• Statement of Cash Flows

• Statement of Retained Earnings

Which accounting standard deals with the presentation of financial statements?

• MFRS 102

• MFRS 107

• MFRS 101

• MFRS 9

According to the conceptual framework, an asset is defined as:

• An obligation of an entity

• A resource controlled by an entity due to past events

• An increase in economic benefits

• A decrease in liabilities