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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
8085

Last 3 plays: Guest 98 (10/10), Guest 216 (9/10), Guest 172 (8/10).

One at a Time - Single Page - Timed Game

Question 1 of 10

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

Owner's things

Liabilities

Assets

Toys

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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

Credit suppliers

Debit owners

Creditors

Debtors

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Question 5 of 10

5. What is another name for outstanding expenses? Hint

Debit

Accruals

Credit

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

Drawing

Capital

Asset

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

Assets = Capital - Liabilities

Capital = Assets + Liabilities

Liabilities = Capital + Assets

Assets = Capital + Liabilities

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Question 9 of 10

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

Recording transactions

Summarising the transactions

Finding out the profit

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

Dec 17 2024 : Guest 98: 10/10
Dec 12 2024 : Guest 216: 9/10
Dec 08 2024 : Guest 172: 8/10
Dec 07 2024 : Guest 173: 9/10
Dec 03 2024 : Guest 172: 5/10
Dec 03 2024 : klotzplate: 10/10
Nov 29 2024 : Guest 107: 9/10
Nov 26 2024 : Guest 198: 8/10
Nov 26 2024 : xchasbox: 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

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