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Basic Accounting 2 Trivia Quiz

This is a follow up to my "Basic Accounting 1" quiz. The entire quiz is based on the UK system.

A multiple-choice quiz by litacanrena. Estimated time: 4 mins.

Author
litacanrena

Time
4 mins

Type
Multiple Choice

Quiz #
105,399

Updated
Dec 03 21

# Qns
10

Difficulty
Average

Avg Score
6 / 10

Plays
3959

One at a Time - Single Page - Timed Game

Question 1 of 10

1. The first 3 questions refer to the basic rules of accounting when it comes to debit and credit. How many rules are there? Hint

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Question 2 of 10

2. One of the rules is - Debit the ________, credit the ________. Fill in the blanks. Hint

owner, customer

receiver, giver

goods, cash

customer, owner

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Question 3 of 10

3. A personal account involves a person or individual. (U.S.A only)

True

False

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Question 4 of 10

4. What is an account that involves expenses, losses, incomes and gains known as? Hint

Basic Account

Nominal Account

Spending Account

None Of These

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Question 5 of 10

5. What is a salary in terms of expenses and incomes? Hint

Expense for manager and income for owner

Expense for customer and income for employee

Expense for employer and income for customer

Expense for employer and income for employee

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Question 6 of 10

6. What is opportunity cost? Hint

The cost of the product

The next best undergone alternative

The next best foregone alternative

The next best transfer earning

7. A man earns $3000 in his present job and receives an offer for $4000 from another firm. He resigns from his current job and takes up the offer for $4000. From the man's point of view, what is his opportunity cost? Hint

$3000

$4000

$1000

$7000

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Question 8 of 10

8. What happens in a Double entry system? Hint

For every Debit there is an equal Credit

For every Liability there is an equal Credit

For every Debit there is an equal Asset

There is no such thing as double entry system

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Question 9 of 10

9. In the term "Balance C/D", what does "C/D" stand for? Hint

caught does it

caught down

carry down

carry does it

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Question 10 of 10

10. Are assets debited or credited when they increase? Hint

Credited

Debited

Both can be done

Assets are never recorded in the books of accounts

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Quiz Answer Key and Fun Facts

1. The first 3 questions refer to the basic rules of accounting when it comes to debit and credit. How many rules are there?

Answer: 3

There are 3 rules of accounting-
Debit what comes in, credit what goes out.
Debit the receiver, credit the giver.
Debit all expenses and losses, credit all incomes and gains.

2. One of the rules is - Debit the ________, credit the ________. Fill in the blanks.

Answer: receiver, giver

This is the first rule of accounting. The other rules are debit what comes in and credit what goes out. Debit all expenses and losses and credit all incomes and gains.

3. A personal account involves a person or individual. (U.S.A only)

Answer: True

A personal account could be a partnership firm, a company or any form of organisation a business deals with.

4. What is an account that involves expenses, losses, incomes and gains known as?

Answer: Nominal Account

It includes salaries, rent, discounts, etc.

5. What is a salary in terms of expenses and incomes?

Answer: Expense for employer and income for employee

Anything that is an expense for one person or company is income for another person or company.

6. What is opportunity cost?

Answer: The next best foregone alternative

It means you have to lose something to gain another. What is lost is the opportunity cost. This is because we have unlimited wants and limited resources.

Answer: $3000

This is a simple problem that helps to understand opportunity cost.

8. What happens in a Double entry system?

Answer: For every Debit there is an equal Credit

This is a list where you sort out transactions.

9. In the term "Balance C/D", what does "C/D" stand for?

Answer: carry down

Similarly, balance "B/D" stands for brought down.

10. Are assets debited or credited when they increase?

Answer: Debited

Assets, expenses and losses are debited while liabilities, incomes and gains are credited.

Source: Author litacanrena

This quiz was reviewed by FunTrivia editor Exit10 before going online.
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