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Quiz about General Accounting Knowledge
Quiz about General Accounting Knowledge

General Accounting Knowledge Trivia Quiz


Some accounting that everyone should have a taste of.

A multiple-choice quiz by blink_angel_182. Estimated time: 4 mins.
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Time
4 mins
Type
Multiple Choice
Quiz #
257,507
Updated
Dec 03 21
# Qns
10
Difficulty
Average
Avg Score
7 / 10
Plays
5983
Last 3 plays: gogetem (7/10), Guest 49 (7/10), Guest 175 (8/10).
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Question 1 of 10
1. What does the abbreviation GAAP stand for? Hint


Question 2 of 10
2. What is the amount collected from the sale of goods and services called? Hint


Question 3 of 10
3. What is it called when your expenses are greater than your revenues on an income statement? Hint


Question 4 of 10
4. Which accounting principle states that the same amount of time must be used for each accounting period? Hint


Question 5 of 10
5. What is the cash basis of accounting? Hint


Question 6 of 10
6. This can be written either in an account form or a report form. Hint


Question 7 of 10
7. Which of the following is not considered a financial statement? Hint


Question 8 of 10
8. When completing the financial statements, it is necessary to complete the income statement before the balance sheet.


Question 9 of 10
9. An income statement encompasses which of the following? Hint


Question 10 of 10
10. When an owner takes out money from the business for personal use, its impact on equity is recorded on the credit side.



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Most Recent Scores
Mar 27 2024 : gogetem: 7/10
Mar 26 2024 : Guest 49: 7/10
Mar 26 2024 : Guest 175: 8/10
Mar 25 2024 : Guest 206: 2/10
Mar 24 2024 : rufuspeter: 6/10
Mar 24 2024 : Guest 110: 9/10
Mar 22 2024 : Guest 110: 10/10
Mar 22 2024 : Guest 175: 6/10
Mar 22 2024 : Guest 117: 5/10

Score Distribution

quiz
Quiz Answer Key and Fun Facts
1. What does the abbreviation GAAP stand for?

Answer: Generally Accepted Accounting Principles

There are various generally accepted accounting principles that should always be followed by all businesses if they don't want the trouble of having auditors keep a close eye on their company.
2. What is the amount collected from the sale of goods and services called?

Answer: Revenue

When a company does a service or sells something revenue is recorded on an income statement and raises the overall equity of the owner.
3. What is it called when your expenses are greater than your revenues on an income statement?

Answer: Net Loss

You'd have a loss because you've lost money in that period of time and it would be a net meaning overall during the accounting period.
4. Which accounting principle states that the same amount of time must be used for each accounting period?

Answer: Time Period Principle

Accounting statements can be made on period of time such as monthly, annually, semi-annually etc. Every time a statement is made it should be made on the same duration of time each time to follow the time period principle.
5. What is the cash basis of accounting?

Answer: Revenue and expenses are recognized as cash comes in or goes out.

The cash basis of accounting is rarely used, however when it is used, it is recorded on an income statement when the owner of a company physically receives a payment for their goods or services or sends out a check for an expense they incurred.
6. This can be written either in an account form or a report form.

Answer: Balance Sheet

The account form balance sheet is divided into two columns assets and liabilities and equity. The report form balance sheet has assets, liabilities and equity all down a single column.
7. Which of the following is not considered a financial statement?

Answer: Trial Balance

Financial statements are what the investors in the company can see. Balance Sheets and Income Statements show how a company is doing at a certain point in time. A trial balance is just a method of checking there are no errors in calculations.
8. When completing the financial statements, it is necessary to complete the income statement before the balance sheet.

Answer: True

The income statement must always be written before the balance sheet because the income statement generates a net income or loss which needs to be known so the owner equity on the balance sheet must be the same.
9. An income statement encompasses which of the following?

Answer: Expenses, Revenues, Net Income or Net Loss

The income statement shows expenses, and revenues for a specific period of time and the net income or loss are calculated by subtracting expenses from revenues. If the number is negative the company is experiencing a net loss, if it's positive it's a net income.
10. When an owner takes out money from the business for personal use, its impact on equity is recorded on the credit side.

Answer: False

When cash is taken out, cash decreases on the credit side therefore the impact on the equity must occur on the opposite side, namely the debit side.
Source: Author blink_angel_182

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