wayground logo

Free Printable Worksheets

NEW

Font size

S
M
L
XL
Worksheets

Accounting Quiz

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

What is the fundamental accounting equation?

a)

Assets = Liabilities + Revenue

b)

Assets = Liabilities + Expenses

c)

Assets = Liabilities + Capital

d)

Assets = Income + Expenditure

e)

None of the above

2.

Which type of account is affected by 'Debit the receiver, credit the giver'?

a)

Real Account

b)

Nominal Account

c)

Personal Account

d)

Capital Account

e)

Asset Account

3.

What does a Petty Cash Book maintain?

a)

All major business transactions

b)

Cash transactions above a certain limit

c)

All small payments and repetitive transactions

d)

Transactions involving large assets

e)

Daily big transaction

4.

Which method of depreciation calculates it based on machine usage?

a)

Straight-line method

b)

Diminishing balance method

c)

Machine hour rate method

d)

Annuity method

e)

Sinking fund method

5.

What is a Bill of Exchange primarily used for?

a)

Recording expenses

b)

Guaranteeing payment in trade

c)

Issuing stock dividends

d)

Calculating taxes

e)

None of the above

6.

Which of the following is a feature of the triple column cash book?

a)

Contains only cash transactions

b)

Includes columns for cash, bank, and discount

c)

Records only bank-related transactions

d)

Includes only receipts

e)

Tracks stock and inventory

7.

What is goodwill classified as in accounting?

a)

Tangible Asset

b)

Intangible Asset

c)

Current Asset

d)

Fixed Liability

e)

Revenue

8.

Which accounting principle requires recording revenue when earned, not when received?

a)

Matching Principle

b)

Accrual Principle

c)

Consistency Principle

d)

Conservatism Principle

e)

Cost Principle

9.

What is the primary purpose of a trial balance?

a)

To prepare the balance sheet

b)

To verify the arithmetical accuracy of ledger postings

c)

To finalize financial statements

d)

To calculate profit and loss

e)

To track income and expenditure

10.

What does the term 'debit' signify in accounting?

a)

An increase in liability

b)

A decrease in asset

c)

An increase in asset or expense

d)

An increase in revenue

e)

A decrease in capital

11.

Which account shows a credit balance?

a)

Asset Account

b)

Expense Account

c)

Capital Account

d)

Drawings Account

e)

Petty Cash Account

12.

What is a Reserve Fund used for?

a)

Daily expenses

b)

Contingencies and expansions

c)

Payment of creditors

d)

Employee benefits

e)

None of the above

13.

What is the treatment of bad debts in the Profit & Loss Account?

a)

Added to sundry debtors

b)

Shown as a liability

c)

Debited to the Profit & Loss Account

d)

Credited to the Profit & Loss Account

e)

Ignored

14.

What does 'Deferred Revenue Expenditure' refer to?

a)

Regular revenue expenses

b)

Expenses incurred for one year

c)

Huge expenses with benefits lasting multiple years

d)

Unaccounted expenses

e)

Income to be received in future

15.

What is a distinguishing feature of a partnership firm?

a)

Limited liability for partners

b)

No need for a written agreement

c)

Mutual agreement among partners

d)

Cannot share profits

e)

Operates as a sole proprietorship

16.

What is the purpose of a Revaluation Account?

a)

To calculate profit

b)

To adjust the value of assets and liabilities during reconstitution

c)

To record daily transactions

d)

To finalize accounts for a financial year

e)

To calculate depreciation

17.

Which type of share has preferential rights to dividends?

a)

Equity Shares

b)

Bonus Shares

c)

Preference Shares

d)

Convertible Shares

e)

Ordinary Shares

18.

What is the term for recording entries in the ledger?

a)

Journalizing

b)

Posting

c)

Finalizing

d)

Summarizing

e)

Balancing

19.

Which error does not affect the trial balance?

a)

Partial omission

b)

Error of principle

c)

Posting on the wrong side

d)

Wrong totaling

e)

Omission of an account from the trial balance

20.

What is 'Provision for Discount on Debtors' classified as?

a)

Asset

b)

Liability

c)

Revenue

d)

Expense

e)

Gain

21.

Which financial statement summarizes a company’s assets, liabilities, and equity at a specific point in time?

a)

Income Statement

b)

Balance Sheet

c)

Cash Flow Statement

d)

Trial Balance

e)

General Ledger

22.

In which book are credit purchases recorded?

a)

Sales Journal

b)

Purchase Journal

c)

Cash Book

d)

General Ledger

e)

Petty Cash Book

23.

What is a 'Deferred Tax Asset'?

a)

An amount expected to reduce future tax liability

b)

A current liability

c)

A tax payable in the next year

d)

Revenue earned but not received

e)

A loan given to employees

24.

Which account is debited when an owner withdraws cash for personal use?

a)

Capital Account

b)

Drawings Account

c)

Cash Account

d)

Expense Account

e)

Revenue Account

25.

Which ledger contains accounts related to customers?

a)

Sales Ledger

b)

General Ledger

c)

Purchase Ledger

d)

Nominal Ledger

e)

Imprest Ledger

26.

What is the main purpose of a Balance Sheet?

a)

To determine the net profit or loss

b)

To show the financial position of a business

c)

To record daily transactions

d)

To calculate tax liability

e)

To manage cash flow

27.

What does 'Capital Expenditure' refer to?

a)

Day-to-day operating costs

b)

Investments in long-term assets

c)

Payments to employees

d)

Dividend payouts

e)

Tax-related expenses

28.

Which type of account is credited when a loan is received?

a)

Asset Account

b)

Liability Account

c)

Capital Account

d)

Expense Account

e)

Revenue Account

29.

What is 'Imprest System' related to?

a)

Maintenance of fixed assets

b)

Petty Cash management

c)

Tax assessment

d)

Employee salaries

e)

Long-term liabilities

30.

What is the primary function of a Cash Flow Statement?

a)

To calculate profit and loss

b)

To track cash inflow and outflow

c)

To reconcile bank accounts

d)

To analyze the balance sheet

e)

To determine tax liability

31.

Which account is debited when machinery is purchased for cash?

a)

Cash Account

b)

Machinery Account

c)

Expense Account

d)

Liability Account

e)

Revenue Account

32.

What is 'Discount Allowed' classified as?

a)

Income

b)

Expense

c)

Asset

d)

Liability

e)

Revenue

33.

Which of the following is an intangible asset?

a)

Land

b)

Goodwill

c)

Inventory

d)

Building

e)

Cash

34.

What does 'Forfeiture of Shares' imply?

a)

Selling shares at a discount

b)

Canceling shares due to non-payment

c)

Issuing bonus shares

d)

Buying back shares

e)

Transferring shares

35.

Which principle states that expenses should match revenues?

a)

Consistency Principle

b)

Matching Principle

c)

Prudence Principle

d)

Cost Principle

e)

Entity Principle

36.

What is 'Provision for Doubtful Debts'?

a)

An expense

b)

A liability

c)

A reserve

d)

A contra asset

e)

Revenue

37.

What is the primary purpose of accounting standards?

a)

Tax compliance

b)

Ensuring uniformity and comparability

c)

Calculating profits

d)

Preparing budgets

e)

Reconciling accounts

38.

What is the basis of the 'Straight-Line Depreciation Method'?

a)

Decreasing cost over time

b)

Equal allocation of cost over useful life

c)

Random expense allocation

d)

Market value fluctuations

e)

Estimated residual value

39.

Which account type is affected by 'Credit all incomes and gains'?

a)

Asset Account

b)

Liability Account

c)

Revenue Account

d)

Capital Account

e)

Expense Account

40.

What is the role of a 'Bank Reconciliation Statement'?

a)

Track petty cash expenses

b)

Match bank and cash book balances

c)

Prepare trial balance

d)

Determine net profit

e)

Finalize financial statements

41.

Which financial statement shows profit earned over a period?

a)

Balance Sheet

b)

Income Statement

c)

Cash Flow Statement

d)

Statement of Changes in Equity

e)

Trial Balance

42.

What does 'Current Asset' include?

a)

Machinery

b)

Inventory

c)

Patents

d)

Building

e)

Debentures

43.

Which ledger tracks liabilities of the business?

a)

General Ledger

b)

Nominal Ledger

c)

Creditors Ledger

d)

Sales Ledger

e)

Purchases Ledger

44.

What is the meaning of 'Accrued Income'?

a)

Income earned but not received

b)

Income received in advance

c)

Future income

d)

Deferred revenue

e)

Revenue earned and received

45.

What is 'Capital Employed' in a business?

a)

Total equity

b)

Net working capital

c)

Fixed assets minus liabilities

d)

Total assets minus current liabilities

e)

Net profit

46.

Which of the following is not a feature of a joint venture?

a)

Temporary partnership

b)

Sharing profits and losses

c)

Separate business entity

d)

Mutual agency

e)

Dissolution after the project

47.

What does 'Revenue Expenditure' include?

a)

Purchases of fixed assets

b)

Day-to-day operating expenses

c)

Repayment of loans

d)

Purchase of land

e)

Dividend payments

48.

Which method evaluates goodwill by considering average profits?

a)

Super Profit Method

b)

Annuity Method

c)

Average Profit Method

d)

Weighted Average Method

e)

Capitalization Method

49.

What is the 'Sinking Fund' used for?

a)

Cover operating costs

b)

Replace fixed assets

c)

Pay dividends

d)

Employee bonuses

e)

None of the above

50.

What is the impact of 'Discount Received' on accounts?

a)

Increases expenses

b)

Decreases revenue

c)

Increases liabilities

d)

Reduces cost of goods sold

e)

Shown as income

Similar Resources on Wayground

PPIA Module 1 Quiz

49 questions

PPIA Module 1 Quiz

quiz

Worksheet

•

Professional Development

2D Ecotourism and Sustainable Tourism Principles Worksheet

50 questions

2D Ecotourism and Sustainable Tourism Principles Worksheet

quiz

Worksheet

•

Professional Development

Customs Valuation Method

50 questions

Customs Valuation Method

quiz

Worksheet

•

Professional Development

FMEL 104 Preliminary Exam

46 questions

FMEL 104 Preliminary Exam

quiz

Worksheet

•

Professional Development

Series 66 Questions 1

50 questions

Series 66 Questions 1

quiz

Worksheet

•

Professional Development

Pinnacle Plutus - VUL Mock Exam 1

50 questions

Pinnacle Plutus - VUL Mock Exam 1

quiz

Worksheet

•

University - Professi...

Seleksi Online Kandidat FCA 2025

50 questions

Seleksi Online Kandidat FCA 2025

quiz

Worksheet

•

Professional Development

ME_CIA_III

50 questions

ME_CIA_III

quiz

Worksheet

•

Professional Development