WorksheetsAccounting Terms Quiz-2
Total questions: 25
Worksheet time: 14mins
Which of the following is not an accounting term?
Journal
Ledger
Pencil
Trial balance
Which of the following is an example of a liability
Cash
Accounts receivable
Accounts payable
Inventory
Which of the following is an example of a revenue account?
Rent expense
Salaries payable
Sales revenue
Accounts receivable
Which of the following is an example of a contra account?
Depreciation expense
Accounts payable
Sales revenue
Cost of goods sold
Which of the following is a characteristic of a fixed asset?
It is expected to be held for less than one year.
It is not used in the production of goods or services.
It is tangible and long-term in nature.
It is recorded as an expense when purchased.
Which of the following financial statements shows a company's revenues and expenses over a period of time?
Balance sheet
Income statement
Statement of cash flows
Statement of retained earnings
Which of the following is a non-cash expense?
Rent expense
Depreciation expense
Salaries expense
Advertising expense
Which of the following financial statements shows a company's assets, liabilities, and equity at a specific point in time?
Balance sheet
Income statement
Statement of cash flows
Statement of retained earnings
Which of the following is a term used to describe the process of allocating the cost of a long-term asset over its useful life?
Depreciation
Amortization
Accrual
Capitalization
Expenditure of revenue nature that gives benefit for more than one accounting period is categorised as
deferred revenue expenditure
capital expenditures
revenue expenditure
none of these
A person to whom money is owed by the firm for purchase of goods on credit is called a __________.
creditor
Debtor
owner
Entity
Bank overdraft is
short term liability
long term liability
contingent liability
None of these
The nature of accrued income is
revenue
liability
expenses
assets
purchase refers to the purchase of
goods for resale
stationary for office use
assets for the factory
None of these
A liability arises because of
cash transaction
credit transaction
cash as well as credit transactions
none of these
Amount paid or payable against purchase of goods is
revenue expenditure.
capital expenditure.
Both of the above
None of these.
Expenditure of revenue nature that gives benefit for more than one accounting period is categorised as
Capital Expenditure.
Revenue Expenditure.
Deferred Revenue Expenditure.
None of these.
Which of the following is not a long-term liability?
Creditors
Term loan
Debentures
Bank loan
Prepaid expense is expense
Paid in Advance.
Still to be paid.
Both of the above
None of these.
Excess of income over its related expenses which arises from its normal business activity is
Gain
Profit
Revenue
Loss
Liability in which obligation to pay, depends on happening of an event is
Contingent Liability.
Long term Liability.
Short term Liability.
None of these.
Assets which have a finite life depending upon the value of natural resources extracted is
Fictitious Assets.
Wasting Assets.
Fixed Assets.
None of these.
Reduction in amount payable allowed by the seller of goods after the goods have been sold is
Rebate.
Trade Discount.
Cash Discount.
None of these.
Income is .............
Revenue Less Expense.
Expense Less Revenue.
Sales Less Cost of goods Sold.
Purchase Less Purchase Return.
Which of the following is not a fixed asset?
Building
Plant and Machinery
Balance with bank
Goodwill
