Numbers are the only constant in our lives and are an essential part of our lives! No matter what we do, or where we are, you will see these numbers are the same. Even in our daily activities, numbers are more useful than we can imagine. Let us talk about accounts, everyone must have heard of this word too. Accounting as a subject is very interesting, but when it comes to real life, it is not that easy, and we might have to learn more about the same. But the basics of accounting are quite important for every person. Do you think you are smart enough to do the same? Then, why not try this trivia quiz on accounting basics and prove everyone wrong?
1. How many fundamental concepts are there in accounting?
A. 10
B. 6
C. 5
D. 3
2. What are resources or items that the company owns called?
A. Liabilities
B. Resources
C. Assets
D. None of these
3. What are the legal financial obligations or debts that companies incur during business operations called?
A. Assets
B. Liabilities
C. Capital
D. None of these
4. What is the amount of money that a company is required to return to its shareholders after all of its assets are liquidated and all of its debt is paid off called?
A. Equity
B. Expense
C. Capital
D. Revenue
5. What are the costs of operations that businesses incur to generate revenue called?
A. Loss
B. Revenue
C. Capital
D. Expense
6. What is the income that a company generates from its normal business operations called?
A. Equity
B. Profit
C. Revenue
D. All of the above
7. What are transactions in which products/services are transferred from buyers to sellers for cash or credit called?
A. Revenue
B. Sales
C. Expense
D. None of the above
8. What are the transactions that businesses require to obtain materials and services necessary to accomplish their goals called?
A. Purchases
B. Sales
C. Expenses
D. Loss
9. What are the the transactions that refer to a company getting paid for providing services or goods to customers called?
A. Sales
B. Purchases
C. Expenses
D. Receipts
10. What is the document contains information about the company's revenues and deducts all expenses incurred to determine the net profit or loss for the reporting period called?
A. Loss
B. Receipt Statement
C. Income Statement
D. None of the above
11. What is the document contains information about a company's assets, liabilities and equity as of the end of the reporting period called?
A. Income Statement
B. Balance Sheet
C. Receipt Statement
D. Financial Document
12. What is the document contains information about the uses and sources of cash during the reporting period called?
A. Statement of cash flows
B. Balance sheet
C. Receipt Statement
D. Income Statement
13. Which principle determines when accountants may record transactions as revenue in their books?
A. Income Principle
B. Profit Principle
C. Expense Principle
D. Revenue Principle
14. Which principle determines when an accountant can record a transaction as an expense in their books?
A. Income principle
B. Revenue principle
C. Expense principle
D. All of the above
15. Which principle states that a company is required to match all its revenue items with a corresponding expense item?
A. Revenue Principle
B. Matching Principle
C. Income Principle
D. All of the above
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