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Quiz about Accounting 101  Bookkeeping
Quiz about Accounting 101  Bookkeeping

Accounting 101 - Bookkeeping Trivia Quiz


Includes some of the things I've learned in my first six weeks of Accounting and Finance.

A multiple-choice quiz by LadyCaitriona. Estimated time: 6 mins.
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Time
6 mins
Type
Multiple Choice
Quiz #
55,057
Updated
Dec 03 21
# Qns
15
Difficulty
Tough
Avg Score
8 / 15
Plays
7190
Awards
Top 20% Quiz
Last 3 plays: Guest 110 (9/15), Guest 105 (4/15), Guest 104 (6/15).
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Question 1 of 15
1. What is the normal balance for an expense account? Hint


Question 2 of 15
2. The act of transferring the information from the General Journal to the General Ledger is called what? Hint


Question 3 of 15
3. What does the accounting acronym G.A.A.P. stand for?

Answer: (Four Words)
Question 4 of 15
4. The abbreviations for debit and credit (Dr. and Cr.) come from what language, and mean what? Hint


Question 5 of 15
5. True or False? To "debit" an account means to add to it.


Question 6 of 15
6. What kind of balance sheet makes distinctions between current and capital assets? Hint


Question 7 of 15
7. How do you get the Current Ratio? Hint


Question 8 of 15
8. True or False? If a mistake is made in a journal entry, two correcting entries are required to fix it.


Question 9 of 15
9. When we talk about accounting, what kind of job do we mean? Hint


Question 10 of 15
10. Which part of the G.A.A.P. is "the assumption that economic events can be identified with a particular unit of accountability"? Hint


Question 11 of 15
11. Which form of accounting states that transactions are to be recorded in the period that they occur? Hint


Question 12 of 15
12. Usually, what asset account in a company's ledger is the most liquid?

Answer: (One Word)
Question 13 of 15
13. In Canada, which kind of accountant would you go to to have prepare your income tax documentation, public or private?

Answer: (One Word - Public or Private)
Question 14 of 15
14. What does the certification CA stand for (in Canada)?

Answer: (Two Words)
Question 15 of 15
15. When you have yet to bill a customer for services rendered and have not received the money in the same financial period that the service was performed, then the transaction is recorded as a(n) ________ (assume accrual basis of accounting)? Hint



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Most Recent Scores
Oct 23 2024 : Guest 110: 9/15
Oct 06 2024 : Guest 105: 4/15
Oct 01 2024 : Guest 104: 6/15
Sep 19 2024 : Guest 24: 11/15
Sep 16 2024 : Guest 176: 1/15
Sep 15 2024 : Guest 69: 3/15
Sep 12 2024 : Guest 112: 6/15
Sep 06 2024 : bernie73: 5/15
Sep 05 2024 : Guest 174: 3/15

Score Distribution

quiz
Quiz Answer Key and Fun Facts
1. What is the normal balance for an expense account?

Answer: Debit

Expenses decrease the owner's capital.
2. The act of transferring the information from the General Journal to the General Ledger is called what?

Answer: Posting

You JOURNALIZE an entry from the source, and POST the journal entry to the ledger.
3. What does the accounting acronym G.A.A.P. stand for?

Answer: Generally Accepted Accounting Principles

These are the principles that govern the form and format of accounting.
4. The abbreviations for debit and credit (Dr. and Cr.) come from what language, and mean what?

Answer: Latin, debere and credere

Accounting has been around for a long time :)
5. True or False? To "debit" an account means to add to it.

Answer: False

Only if the normal balance of the account is debit. If the normal balance of the account is credit, you deduct.
6. What kind of balance sheet makes distinctions between current and capital assets?

Answer: Classified

7. How do you get the Current Ratio?

Answer: divide current assets by current liabilities

The Current Ratio tells you how well your business is able to cover its current debts (the ones payable in the next twelve months). It is generally accepted that if your business has a Current Ratio of two or more, you're doing well.
8. True or False? If a mistake is made in a journal entry, two correcting entries are required to fix it.

Answer: False

You can use two entries to fix it, but two are not REQUIRED. The entry can usually be fixed with one entry, or one compound entry.
9. When we talk about accounting, what kind of job do we mean?

Answer: All of bookkeeping, auditing, consulting, and more.

Bookkeeping is only a very small part of the accounting process.
10. Which part of the G.A.A.P. is "the assumption that economic events can be identified with a particular unit of accountability"?

Answer: Economic entity assumption

Basically, the economic entity assumption states that a corporation exists as a separate entity from its owner(s) or shareholders.
11. Which form of accounting states that transactions are to be recorded in the period that they occur?

Answer: Accrual basis of accounting

The other form is the cash basis of accounting, where revenue is recorded only when cash is received, and expenses are recorded only when cash is paid.
12. Usually, what asset account in a company's ledger is the most liquid?

Answer: cash

An account increases in liquidity the easier it is to turn into cash. This is important to know, because on a Classified Balance Sheet, current assets and current liabilities must be recorded in order of decreasing liquidity.
13. In Canada, which kind of accountant would you go to to have prepare your income tax documentation, public or private?

Answer: public

A public accountant opens his business to the public, whereas a private accountant works for a private company.
14. What does the certification CA stand for (in Canada)?

Answer: Chartered Accountant

15. When you have yet to bill a customer for services rendered and have not received the money in the same financial period that the service was performed, then the transaction is recorded as a(n) ________ (assume accrual basis of accounting)?

Answer: accrued revenue

In the cash basis of accounting, the transaction would not be recorded until the next period, when the cash is received.
Source: Author LadyCaitriona

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