FREE! Click here to Join FunTrivia. Thousands of games, quizzes, and lots more!

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
8074

Last 3 plays: Guest 148 (10/10), Guest 148 (2/10), Guest 208 (8/10).

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

NEXT>

Question 2 of 10

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

Liabilities

Capital

Assets

Profit

NEXT>

Question 3 of 10

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

Yes

NEXT>

Question 4 of 10

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

Credit suppliers

Debit owners

Creditors

Debtors

NEXT>

Question 5 of 10

5. What is another name for outstanding expenses? Hint

Debit

Loans

Credit

Accruals

NEXT>

Question 6 of 10

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

Liability

Drawing

Capital

Asset

NEXT>

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

NEXT>

Question 8 of 10

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

Assets = Capital - Liabilities

Assets = Capital + Liabilities

Liabilities = Capital + Assets

Capital = Assets + Liabilities

NEXT>

Question 9 of 10

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

Recording songs

Finding out the profit

Recording transactions

Summarising the transactions

NEXT>

Question 10 of 10

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

Drinking lots of coffee

Recording transactions and financial activity

Interpreting the accounts and financial activity

Noting down the debits and credits

(Optional) Create a Free FunTrivia ID to save the points you are about to earn:

Select a User ID:

Choose a Password:

Your Email:

Most Recent Scores

Nov 13 2024 : Guest 148: 10/10
Nov 08 2024 : Guest 148: 2/10
Nov 07 2024 : Guest 208: 8/10
Nov 06 2024 : Guest 148: 3/10
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

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

This quiz was reviewed by FunTrivia editor Brainyblonde before going online.
Any errors found in FunTrivia content are routinely corrected through our feedback system.