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WorksheetsBasic Accounting Concepts Quiz
Total questions: 10
Worksheet time: 5mins
Which of the following is an example of a liability?
Cash
Inventory
Mortgage Payable
Equipment
What is the purpose of a trial balance?
To prepare financial statements
To check the accuracy of all ledger accounts
To calculate net income
To determine the company's tax liability
The double-entry accounting system requires that:
Every transaction affects at least two accounts
Only expenses and revenues are recorded
Financial statements are prepared monthly
Every transaction is recorded twice in the same account
What is the primary purpose of financial accounting?
To ensure employees are paid on time
To provide financial information to external users
To manage the company's internal operations
To calculate tax liabilities
Which financial statement shows a company's financial position at a specific point in time?
Income Statement
Statement of Cash Flows
Balance Sheet
Statement of Retained Earnings
Which of the following is considered an asset?
Accounts Payable
Bank Loan
Accounts Receivable
Owner's Equity
Revenue is:
The increase in owner's equity resulting from the sale of goods or services
The decrease in owner's equity resulting from the sale of goods or services
The amount of money spent by a business
A type of asset
The accounting equation is:
Assets = Liabilities + Owner's Equity
Assets = Liabilities - Owner's Equity
Assets + Liabilities = Owner's Equity
Liabilities = Assets + Owner's Equity
Which of the following accounts would appear on the income statement?
Prepaid Expenses
Unearned Revenue
Depreciation Expense
Accounts Receivable
Which principle states that expenses should be recorded in the period in which they are incurred, regardless of when the cash is paid?
Revenue Recognition Principle
Matching Principle
Historical Cost Principle
Full Disclosure Principle
