Introduction to Accounting Quiz

What is the primary purpose of accounting?

• To record transactions

• To create marketing strategies

• To provide quantitative information

• To manage human resources

Which of the following best differentiates accounting from bookkeeping?

• Accounting includes interpreting financial information

• Bookkeeping is only for small businesses

• Accounting is more complex than bookkeeping

• Bookkeeping involves financial analysis

Who among the following is NOT a user of accounting information?

• Employees

• Manufacturers

• Government

• Investors

What type of business is owned by one individual?

• Partnership

• Corporation

• Franchise

• Proprietorship

Which accounting concept states that revenues should be matched with expenses?

• Matching Principle

• Monetary Unit

• Separate Entity

• Going-concern

What is a disadvantage of a partnership?

• Limited liability

• Unlimited liability

• High cost of organization

• No management skills

Which of the following is a characteristic of a corporation?

• Easier to manage

• Limited financial resources

• Owned by one individual

• Double taxation

What is the role of accounting information for lenders?

• To evaluate employee performance

• To determine amount owed plus interest

• To analyze customer satisfaction

• To assess market trends

In which type of business would you find General Motors?

• Merchandising Business

• Non-profit Organization

• Service Business

• Manufacturing Business

Why is the concept of 'going-concern' important in accounting?

• It indicates the entity will continue operating

• It ensures compliance with laws

• It helps in tax calculations

• It simplifies bookkeeping