Accounting Quiz

Which of the following is not a financial statement?

• Balance Sheet

• Profit and Loss Statement

• Ledger

• Cash Flow Statement

Which accounting concept requires recording revenue when it is earned and not when cash is received?

• Matching Concept

• Accrual Concept

• Going Concern Concept

• Conservatism Concept

What is the main purpose of financial accounting?

• To calculate income tax

• To help in budgeting

• To provide financial information to external users

• To record personal transactions

Which of the following accounts is a nominal account?

• Cash

• Accounts Receivable

• Rent Expense

• Equipment

A trial balance is prepared to:

• Record transactions

• Detect all errors

• Prepare financial statements

• Check the arithmetic accuracy of ledger accounts

The basic accounting equation is:

• Assets = Liabilities + Revenue

• Assets = Liabilities + Capital

• Assets = Liabilities – Capital

• Assets = Revenue – Expenses

Which of the following is an example of a current asset?

• Land

• Building

• Accounts Receivable

• Equipment

Depreciation is charged on:

• Current Assets

• Liabilities

• Fixed Assets

• Capital

Which financial statement shows the financial position of a business at a specific point in time?

• Income Statement

• Trial Balance

• Statement of Cash Flows

• Balance Sheet

Which of the following is not an intangible asset?

• Goodwill

• Patent

• Trademark

• Inventory