Intro to Accounting Quiz

What is the primary purpose of accounting?

• To manage human resources

• To increase product sales

• To record and summarize financial transactions

• To monitor customer behavior

Which of the following is not an objective of accounting?

• Ascertain profit or loss

• Determine political position

• Provide decision-making information

• Maintain systematic records

Accounting helps ensure:

• Low employee turnover

• Statutory compliance

• Marketing effectiveness

• Customer loyalty

Who uses accounting information for strategic planning?

• Doctors

• Mechanics

• Stakeholders

• Tourists

Which accounting field involves tracking income and expenses to aid budgeting?

• Forensic Accounting

• Management Accounting

• Financial Accounting

• Tax Accounting

Which of the following careers focuses on investigating fraud?

• Public Accountant

• Management Accountant

• Forensic Accountant

• Financial Analyst

The Accrual Principle in accounting means:

• Revenues are recorded when received in cash

• Transactions are recorded when they occur, not when cash is exchanged

• Expenses should never exceed revenue

• Money must be physically counted

Which type of accounting is primarily concerned with external reporting?

• Financial Accounting

• Cost Accounting

• Management Accounting

• Forensic Accounting

Which principle emphasizes using the same accounting method across periods?

• Prudence

• Matching

• Consistency

• Going Concern

What does the term 'Assets' refer to?

• Debts owed

• Income earned

• Resources owned

• Owner's capital