Accounting Quiz part 1 ASlevel

Which of the following best describes the role of bookkeeping in accounting?

• Making investment decisions

• Recording financial transactions systematically

• Preparing tax returns

• Auditing company operations

Which document is used to request payment from a customer?

• Delivery Note

• Credit Note

• Invoice

• Receipt

Which of the following is an example of a capital expenditure?

• Buying raw materials

• Advertising cost

• Buying a delivery van

• Wages for employees

What is the main purpose of preparing a trial balance?

• To check whether all expenses are paid

• To verify that total debits equal total credits

• To file tax returns

• To ensure all bank transactions are recorded

Which book of original entry is used to record goods returned to suppliers?

• Sales Returns Book

• Purchase Day Book

• Purchase Returns Book

• Journal

The use of accounting software like QuickBooks or Xero is an example of:

• Manual accounting

• Technological integration in accounting

• Traditional bookkeeping

• Financial audit

What is the primary purpose of an audit in accounting?

• To prepare financial statements

• To verify the accuracy of financial records

• To manage cash flow

• To increase sales

Which of the following is considered a liability on the balance sheet?

• Retained Earnings

• Accounts Receivable

• Inventory

• Accounts Payable

Which account is used to correct a one-sided error in accounting?

• Control Account

• Suspense Account

• Adjustment Account

• Capital Account

Which accounting principle requires that expenses be matched with revenues?

• Going Concern Principle

• Consistency Principle

• Conservatism Principle

• Accrual Principle