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Accounting Technical Skills Assessment Practice Quiz

Total questions: 50

Worksheet time: 25mins

Name
Class
Date
1.

What is the main purpose of the accounting cycle?

a)

Prepare tax returns

b)

Provide financial information

c)

Pay employees

d)

Forecast sales

2.

What does the accounting equation represent?

a)

Revenue - Expenses = Net Income

b)

Assets = Liabilities + Equity

c)

Cash In - Cash Out = Net Cash Flow

d)

Debits = Credits

3.

What type of account is "Accounts Payable"?

a)

Asset

b)

Liability

c)

Equity

d)

Revenue

4.

In the double-entry system, every transaction:

a)

Involves only one account

b)

Affects the bank balance

c)

Affects two or more accounts

d)

Only applies to assets

5.

If a company purchases equipment on credit, what accounts are affected?

a)

Equipment and Cash

b)

Equipment and Revenue

c)

Equipment and Accounts Payable

d)

Equipment and Retained Earnings

6.

Which of the following increases equity?

a)

Expenses

b)

Revenue

c)

Drawings

d)

Liabilities

7.

What is a journal entry?

a)

A bank transaction

b)

A source document

c)

A record of a business transaction

d)

A financial statement

8.

Which financial statement shows a company’s profitability over time?

a)

Balance Sheet

b)

Cash Flow Statement

c)

Income Statement

d)

Trial Balance

9.

What is the purpose of adjusting entries?

a)

Close the accounts

b)

Correct errors

c)

Match revenues and expenses

d)

Reconcile cash

10.

Which report lists all accounts and their balances after adjusting entries?

a)

Trial Balance

b)

General Ledger

c)

Post-Closing Trial Balance

d)

Worksheet

11.

A subsidiary ledger:

a)

Is a primary record of cash

b)

Summarizes individual accounts

c)

Contains all general ledger accounts

d)

Shows only equity

12.

What type of entry closes out revenues and expenses?

a)

Adjusting

b)

Opening

c)

Reversing

d)

Closing

13.

What is the last step in the accounting cycle?

a)

Posting

b)

Trial Balance

c)

Journalizing

d)

Post-Closing Trial Balance

14.

What does a check stub show?

a)

Invoices due

b)

Items purchased

c)

Information about checks written

d)

Bank deposit

15.

When filling out a deposit slip, you do not include:

a)

Currency

b)

Checks

c)

Account number

d)

Credit card purchases

16.

What is the purpose of reconciling a bank statement?

a)

Track vendor payments

b)

Match bank and book balances

c)

Prepare payroll

d)

Record credit card charges

17.

What does EFT stand for?

a)

Electronic Financial Transaction

b)

Exchange Funds Transfer

c)

Electronic Funds Transfer

d)

External Fiscal Tracking

18.

An example of a computerized cash control tool is:

a)

Handwritten ledger

b)

Spreadsheet

c)

General journal

d)

Sales invoice

19.

What must be done when a discrepancy is found during reconciliation?

a)

Ignore it

b)

Record it as income

c)

Investigate and correct it

d)

Create a new bank account

20.

A credit card statement is:

a)

An expense report

b)

A source document

c)

A balance sheet

d)

A ledger account

21.

What is the purpose of accounts receivable?

a)

Record vendor invoices

b)

Record cash sales

c)

Track customer balances

d)

Show payroll deductions

22.

An invoice sent to a customer creates what type of transaction?

a)

Debit Cash; Credit Revenue

b)

Debit Accounts Receivable; Credit Revenue

c)

Debit Revenue; Credit Accounts Payable

d)

Debit Supplies; Credit Accounts Receivable

23.

Which report is used to track overdue accounts?

a)

Aging schedule

b)

Bank reconciliation

c)

Ledger summary

d)

Journal entry

24.

Vendor files help manage:

a)

Customer records

b)

Payments owed

c)

Inventory levels

d)

Employee time

25.

Accounts payable transactions typically involve:

a)

Customers

b)

Shareholders

c)

Vendors

d)

Employees

26.

EFT payments are commonly used for:

a)

Internal audits

b)

Manual deposits

c)

Electronic bill payments

d)

Payroll only

27.

What is a subsidiary ledger used for in payables?

a)

Posting journal entries

b)

Monitoring cash flow

c)

Detailing individual vendor balances

d)

Posting adjusting entries

28.

An invoice is entered into the system. What accounts are affected?

a)

Inventory and Accounts Payable

b)

Revenue and Accounts Payable

c)

Accounts Payable and Sales Tax Payable

d)

Accounts Receivable and Cash

29.

Which form does an employee complete at hiring for tax withholding?

a)

W-2

b)

W-4

c)

940

d)

941

30.

How is net pay calculated?

a)

Gross pay + deductions

b)

Gross pay - deductions

c)

Deductions - gross pay

d)

Gross pay x tax rate

31.

Which of the following is an employer tax?

a)

Social Security

b)

Medicare

c)

FUTA

d)

Health insurance

32.

What does Form 940 report?

a)

State taxes

b)

Employee wages

c)

Federal unemployment taxes

d)

Income tax withholdings

33.

Payroll expense is classified as a:

a)

Revenue

b)

Asset

c)

Liability

d)

Expense

34.

Commission-based compensation is calculated as:

a)

A flat rate

b)

A percentage of sales

c)

Hours worked

d)

Annual salary

35.

What is a current asset?

a)

Land

b)

Equipment

c)

Inventory

d)

Mortgage

36.

FIFO stands for:

a)

First In First Out

b)

Financial Income Formula Option

c)

Fixed Inventory Filing Order

d)

Final Invoicing For Orders

37.

Which depreciation method accelerates expense in early years?

a)

Straight-Line

b)

Double Declining Balance

c)

Units of Production

d)

FIFO

38.

A fixed asset is usually:

a)

A prepaid expense

b)

Short-term equipment

c)

Used over multiple years

d)

Always depreciated fully in one year

39.

Which of the following is a purpose of internal controls?

a)

Increase revenue

b)

Prevent fraud

c)

File tax returns

d)

Hire employees

40.

What is a chart of accounts used for?

a)

Filing tax forms

b)

Creating journal entries

c)

Organizing financial information

d)

Calculating sales tax

41.

What does a budget do?

a)

Record actual expenses

b)

Plan future expenses

c)

Track payroll

d)

Reconcile inventory

42.

Which statement best shows a company’s financial position?

a)

Cash flow statement

b)

Balance sheet

c)

Income statement

d)

Trial balance

43.

What’s one reason financial performance is monitored?

a)

To set legal standards

b)

To evaluate employee productivity

c)

To make business decisions

d)

To determine depreciation

44.

In Functions of Accounting in Business Operations a GAAP ensures:

a)

Tax collection

b)

Financial reporting consistency

c)

Legal representation

d)

Government audits

45.

Retained earnings represent:

a)

Owner’s personal investments

b)

Stockholder capital

c)

Profits not distributed

d)

Tax deductions

46.

Nonprofit accounting differs because:

a)

It requires payroll

b)

It tracks donations instead of income

c)

It uses GAAP differently

d)

It doesn't include liabilities

47.

Which financial ratio measures liquidity?

a)

Debt ratio

b)

Current ratio

c)

Profit margin

d)

Gross profit margin

48.

If sales volume increases, what likely happens to net income?

a)

It always decreases

b)

It stays the same

c)

It increases if costs remain constant

d)

It causes depreciation

49.

Which of the following software is commonly used in accounting?

a)

PowerPoint

b)

Canva

c)

QuickBooks

d)

Photoshop

50.

An ethical issue in accounting might be:

a)

Posting to ledgers

b)

Forgetting to issue a check

c)

Manipulating financial data

d)

Using Excel formulas

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