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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.

Author
LadyCaitriona

Time
6 mins

Type
Multiple Choice

Quiz #
55,057

Updated
Dec 03 21

# Qns
15

Difficulty
Tough

Avg Score
8 / 15

Plays
7203

Awards
Top 20% Quiz

Last 3 plays: Guest 174 (10/15), Guest 158 (12/15), Guest 73 (8/15).

One at a Time - Single Page - Timed Game

Question 1 of 15

1. What is the normal balance for an expense account? Hint

Debit

Contraliability

Credit

None of these

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Question 2 of 15

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

Transferring

Posting

Journalizing

Pasting

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Question 3 of 15

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

Answer: (Four Words)

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Question 4 of 15

4. The abbreviations for debit and credit (Dr. and Cr.) come from what language, and mean what? Hint

Greek, debitor and creditor

Greek, debere and credere

Latin, debere and credere

Latin, debitor and creditor

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Question 5 of 15

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

True

False

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Question 6 of 15

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

Classified

Gregarian

Normal

Keynesian

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Question 7 of 15

7. How do you get the Current Ratio? Hint

divide current liabilities by current assets

divide long-term liabilities by current assets

divide capital assets by current liabilities

divide current assets by current liabilities

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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.

True

False

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Question 9 of 15

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

Bookkeeping and auditing.

All of bookkeeping, auditing, consulting, and more.

Bookkeeping and consulting.

Bookkeeping only.

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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

Double-entry assumption

Going concern assumption

Economic entity assumption

Monetary unit assumption

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Question 11 of 15

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

Transaction basis of accounting

Cash basis of accounting

Accrual basis of accounting

Economic basis of accounting

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Question 12 of 15

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

Answer: (One Word)

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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)

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Question 14 of 15

14. What does the certification CA stand for (in Canada)?

Answer: (Two Words)

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

unearned revenue

accrued revenue

accrued expense

prepaid expense

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Most Recent Scores

Dec 20 2024 : Guest 174: 10/15
Dec 17 2024 : Guest 158: 12/15
Dec 16 2024 : Guest 73: 8/15
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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

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

This quiz was reviewed by FunTrivia editor bloomsby before going online.
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