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Introduction to Accounting Quiz

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which one of these is the correct accounting process?

a)

Journal – Ledger – Trial Balance – Financial Statements

b)

Financial Statements – Trial Balance – Ledger - Journal

c)

Journal – Ledger – Financial Statements – Trial Balance

d)

Journal – Trial Balance – Ledger – Financial Statements

2.

Which one of these Financial Statements components that shows the performance of a business?

a)

Statement of Financial Position

b)

Statement of Profit or Loss

c)

Statement of Changes in Equity

d)

Statement of Cash Flows

3.

_____________ implies that a business is a separate unit from the owner of the business.

a)

Money Measurement concept

b)

Accrual concept

c)

Economic Entity concept

d)

Going Concern concept

4.

Which of these is the characteristic of a sole proprietorship?

a)

More than one owner

b)

Difficult to setup

c)

Limited liabilities

d)

Unlimited liabilities

5.

Which of these is not an example of an external user of accounting information?

a)

An owner

b)

A creditor

c)

A government agency

d)

A potential investor

6.

Accounting is responsible in preparing Financial Statements while bookkeeping is not.

a)

False

b)

True

7.

Financial Statements are prepared before preparing the Trial Balance.

a)

True

b)

False

8.

Managers are one of the internal users of accounting information.

a)

True

b)

False

9.

One of the characteristics of a company is unlimited liabilities.

a)

False

b)

True

10.

A business entity concept combines the business assets with the owner’s personal assets.

a)

True

b)

False