Accounting Quiz

Match the term with the correct description: Accounting Cycle

• A document that serves as evidence of a business transaction, such as an invoice or receipt.

• A series of steps followed by businesses to ensure financial accuracy and reporting, from recording transactions to preparing financial statements.

• A type of business organization owned and operated by a single individual.

• A business entity that is separate from its owners, with shareholders and a more complex structure.

• A book of original entry used to record all financial transactions in chronological order.

Match the term with the correct description: Sole Trader

• A document that serves as evidence of a business transaction, such as an invoice or receipt.

• A series of steps followed by businesses to ensure financial accuracy and reporting, from recording transactions to preparing financial statements.

• A type of business organization owned and operated by a single individual.

• A business entity that is separate from its owners, with shareholders and a more complex structure.

• A book of original entry used to record all financial transactions in chronological order.

Match the term with the correct description: General Journal

• A document that serves as evidence of a business transaction, such as an invoice or receipt.

• A series of steps followed by businesses to ensure financial accuracy and reporting, from recording transactions to preparing financial statements.

• A type of business organization owned and operated by a single individual.

• A business entity that is separate from its owners, with shareholders and a more complex structure.

• A book of original entry used to record all financial transactions in chronological order.

Match the term with the correct description: Source Document

• A document that serves as evidence of a business transaction, such as an invoice or receipt.

• A series of steps followed by businesses to ensure financial accuracy and reporting, from recording transactions to preparing financial statements.

• A type of business organization owned and operated by a single individual.

• A business entity that is separate from its owners, with shareholders and a more complex structure.

• A book of original entry used to record all financial transactions in chronological order.

Which of the following is NOT a purpose of accounting?

• To track a company’s financial performance

• To help make business decisions

• To determine employee salaries

• To ensure legal compliance

Which type of business organization offers limited liability protection to its owners?

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

Which of the following is considered a source document in accounting?

• Balance Sheet

• Income Statement

• Invoice

• Cash Flow Statement

In which step of the accounting cycle are financial statements prepared?

• Recording transactions

• Adjusting entries

• Preparing financial statements

• Closing the books

Which of the following is a book of original entry?

• General Ledger

• Sales Journal

• Trial Balance

• Income Statement

Hannah runs a small bakery, and she needs to keep track of all her sales and expenses. The ________ is the sequence of steps used by businesses like hers to record, adjust, and report financial transactions.