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Basic Accounting 1 Trivia Quiz

These are the basics of accounting and anyone can attempt this easy quiz.

A multiple-choice quiz by litacanrena. Estimated time: 3 mins.

Author
litacanrena

Time
3 mins

Type
Multiple Choice

Quiz #
103,989

Updated
Dec 03 21

# Qns
10

Difficulty
Average

Avg Score
8 / 10

Plays
8070

Last 3 plays: Guest 148 (4/10), Guest 173 (7/10), Guest 136 (1/10).

One at a Time - Single Page - Timed Game

Question 1 of 10

1. What are resources owned by a business called? Hint

Assets

Toys

Liabilities

Owner's things

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Question 2 of 10

2. What are the factors that a business owes or needs to pay called? Hint

Profit

Assets

Liabilities

Capital

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Question 3 of 10

3. Can assets can be classified into fixed and current assets?

Yes

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Question 4 of 10

4. What are individuals or organisations that owe amounts to a business known as? Hint

Debtors

Creditors

Credit suppliers

Debit owners

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Question 5 of 10

5. What is another name for outstanding expenses? Hint

Accruals

Credit

Debit

Loans

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Question 6 of 10

6. What is the initial investment by an owner of a sole trader (sole proprietorship) or partnership business called? Hint

Capital

Asset

Drawing

Liability

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Question 7 of 10

7. What term is used for day-to-day dealings that involve the exchange of goods and services for cash? Hint

Bookkeeping

Occasion

Accounting

Business Transactions

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Question 8 of 10

8. Which of the following is the accounting equation? Hint

Capital = Assets + Liabilities

Assets = Capital - Liabilities

Assets = Capital + Liabilities

Liabilities = Capital + Assets

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Question 9 of 10

9. Which is the most important feature of bookkeeping? Hint

Finding out the profit

Recording transactions

Summarising the transactions

Recording songs

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Question 10 of 10

10. Which of these is the most important feature of accounting? Hint

Drinking lots of coffee

Noting down the debits and credits

Interpreting the accounts and financial activity

Recording transactions and financial activity

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Most Recent Scores

Oct 30 2024 : Guest 148: 4/10
Oct 27 2024 : Guest 173: 7/10
Oct 24 2024 : Guest 136: 1/10
Oct 19 2024 : Guest 73: 8/10
Oct 18 2024 : Guest 73: 8/10
Oct 11 2024 : Guest 148: 8/10
Oct 10 2024 : Guest 45: 8/10
Oct 10 2024 : Aph1976: 8/10
Oct 06 2024 : Guest 105: 9/10

Score Distribution

Quiz Answer Key and Fun Facts

1. What are resources owned by a business called?

Answer: Assets

Assets are essential to any business. Some last for long periods of time and can assist in generating profits.

2. What are the factors that a business owes or needs to pay called?

Answer: Liabilities

Liabilities include all loans, outstanding expenses, creditors, and mortgages, etc.

3. Can assets can be classified into fixed and current assets?

Answer: Yes

Fixed or capital assets can assist in earning profits. Current assets are expected to be realized in cash, sold or consumed within one year or one operating cycle of the business.

4. What are individuals or organisations that owe amounts to a business known as?

Answer: Debtors

Debtors are people or other businesses that have to pay you for something. A loan or anyone who has purchased goods on credit are two examples.

5. What is another name for outstanding expenses?

Answer: Accruals

These are expenses incurred during an accounting period, but are unrecorded because payment is not due.

6. What is the initial investment by an owner of a sole trader (sole proprietorship) or partnership business called?

Answer: Capital

Capital can be in the form of machines, cash or goods.

7. What term is used for day-to-day dealings that involve the exchange of goods and services for cash?

Answer: Business Transactions

All transactions affect the accounting equation. Some transactions are internal and do not involve any outside parties.

8. Which of the following is the accounting equation?

Answer: Assets = Capital + Liabilities

Also called the balance sheet equation, it is the basis for financial accounting information.

9. Which is the most important feature of bookkeeping?

Answer: Recording transactions

Bookkeeping is the journalizing or recording of transactions and other events within a business.

10. Which of these is the most important feature of accounting?

Answer: Recording transactions and financial activity

All the options are important features but the most important is the recording function. Any error made in the recording will result to an erroneous interpretation. Hence, interpreting the accounts alone is not as important because erroneous interpretation leads to a wrong decision.

Source: Author litacanrena

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