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    Quiz 1 - Intro

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    coleenmaem.04
    The document is a quiz on introductory accounting and bookkeeping concepts. It contains 15 multiple choice questions testing understanding of basic accounting terms like assets, liabilities, equity, the accounting equation, and the purpose of financial statements. The quiz covers the creation and purpose of accounts receivable, calculating stockholders' equity, identifying assets vs equity, and the role of accounting in providing financial information to stakeholders.

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    © All Rights Reserved
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    Quiz 1 - Intro

    Uploaded by

    coleenmaem.04
    192 views5 pages
    The document is a quiz on introductory accounting and bookkeeping concepts. It contains 15 multiple choice questions testing understanding of basic accounting terms like assets, liabilities, equity, the accounting equation, and the purpose of financial statements. The quiz covers the creation and purpose of accounts receivable, calculating stockholders' equity, identifying assets vs equity, and the role of accounting in providing financial information to stakeholders.

    Original Title

    QUIZ 1- INTRO

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    The document is a quiz on introductory accounting and bookkeeping concepts. It contains 15 multiple choice questions testing understanding of basic accounting terms like assets, liabilities, equity, the accounting equation, and the purpose of financial statements. The quiz covers the creation and purpose of accounts receivable, calculating stockholders' equity, identifying assets vs equity, and the role of accounting in providing financial information to stakeholders.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    192 views5 pages

    Quiz 1 - Intro

    Uploaded by

    coleenmaem.04
    The document is a quiz on introductory accounting and bookkeeping concepts. It contains 15 multiple choice questions testing understanding of basic accounting terms like assets, liabilities, equity, the accounting equation, and the purpose of financial statements. The quiz covers the creation and purpose of accounts receivable, calculating stockholders' equity, identifying assets vs equity, and the role of accounting in providing financial information to stakeholders.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 5

    Quiz 1: Introduction to Accounting and

    Bookkeeping
    Started on Wednesday, 4 October 2023, 8:47 PM
    State Finished
    Completed on Wednesday, 4 October 2023, 8:59 PM
    Time taken 11 mins 33 secs
    Grade 15 out of 15 (100%)
    Question 1

    Question text
    The asset created by a business when it makes a sale on account is termed

    Question 1Answer
    a. accounts payable
    b. prepaid expense
    c. unearned revenue
    d. accounts receivable
    Feedback
    The correct answer is: accounts receivable

    Question 2
    Question text
    The assets and liabilities of the company are P155,000 and P60,000 respectfully.
    Stockholders’ equity should equal

    Question 2Answer
    a. P215,000
    b. P95,000
    c. P155,000
    d. P60,000
    Feedback
    The correct answer is: P95,000

    Question 3
    Question text
    Which of the following is not an asset?

    Question 3Answer
    a. Cash
    b. Investments
    c. Inventory
    d. Stockholders’ Equity
    Feedback
    The correct answer is: Stockholders’ Equity

    Question 4
    Question text
    Which of the following best describes accounting?

    Question 4Answer
    a. records economic data but does not communicate the data to users according to any
    specific rules
    b. is used only for filling out tax returns and for financial statements for various type of
    governmental reporting requirements
    c. is of no use by individuals outside of the business
    d. is an information system that provides reports to stakeholders
    Feedback
    The correct answer is: is an information system that provides reports to stakeholders

    Question 5
    Question text
    The accounting equation may be expressed as

    Question 5Answer
    a. Assets - Liabilities = Stockholders’ Equity
    b. Assets + Liabilities = Stockholders’ Equity
    c. Assets = Revenues less Liabilities
    d. Assets = Equities - Liabilities
    Feedback
    The correct answer is: Assets - Liabilities = Stockholders’ Equity

    Question 6
    Question text
    A financial statement user would determine if a company was profitable or not during a
    specific period of time by reviewing

    Question 6Answer
    a. the Income Statement.
    b. the Balance Sheet.
    c. the Statement of Cash Flows.
    d. cannot be determined.
    Feedback
    The correct answer is: the Income Statement.

    Question 7
    Question text
    Which of the following is the best description of accounting’s role in business?

    Question 7Answer
    a. Accounting provides creditors and banks with information regarding the credit risk
    rating of the company.
    b. Accounting is not responsible for providing any form of information to stakeholders.
    That is the role of the Information Systems Department.
    c. Accounting provides information to managers to operate the business and to other
    stakeholders to make decisions regarding the economic condition of the company.
    d. Accounting provides stockholders with information regarding the market value of the
    company’s stocks.
    Feedback
    The correct answer is: Accounting provides information to managers to operate the
    business and to other stakeholders to make decisions regarding the economic condition
    of the company.

    Question 8
    Question text
    Which of the following is not a business transaction?

    Question 8Answer
    a. sell goods for cash
    b. make a sales offer
    c. receive cash for services to be rendered later
    d. pay for supplies
    Feedback
    The correct answer is: make a sales offer

    Question 9
    Question text
    Goods purchased on account for future use in the business, such as supplies, are called

    Question 9Answer
    a. revenues
    b. prepaid expenses
    c. prepaid liabilities
    d. liabilities
    Feedback
    The correct answer is: prepaid expenses

    Question 10
    Question text
    An entity that is organized in which ownership is divided into shares of stock is a

    Question 10Answer
    a. proprietorship
    b. corporation
    c. partnership
    d. governmental unit
    Feedback
    The correct answer is: corporation
    Question 11
    Question text
    Which of the following is not a role of accounting in business?

    Question 11Answer
    a. To assess the various informational needs of stakeholders and design its accounting
    system to meet those needs.
    b. To provide reports to stakeholders about the economic activities and conditions of a
    business.
    c. To provide information for managers to use in operating the business.
    d. To personally guarantee loans of the business.
    Feedback
    The correct answer is: To personally guarantee loans of the business.

    Question 12
    Question text
    Debts owed by a business are referred to as

    Question 12Answer
    a. stockholders’ equity
    b. accounts receivables
    c. equities
    d. liabilities
    Feedback
    The correct answer is: liabilities

    Question 13
    Question text
    How does the purchase of supplies on account affect the accounting equation?

    Question 13Answer
    a. assets increase; stockholders' equity decreases
    b. liabilities increase; stockholders' equity decreases
    c. assets increase; liabilities decrease
    d. assets increase; liabilities increase
    Feedback
    The correct answer is: assets increase; liabilities increase

    Question 14
    Question text
    Assets are

    Question 14Answer
    a. the same as expenses because they are acquired with cash
    b. financed by the company and/or creditors
    c. either cash or accounts receivables
    d. always greater than liabilities.
    Feedback
    The correct answer is: financed by the company and/or creditors

    Question 15
    Question text
    If the president of the company wanted to know how money flowed into and out of the
    company, what financial statement would she use?

    Question 15Answer
    a. Income Statement
    b. Statement of Cash Flows
    c. Balance Sheet
    d. None are correct.
    Feedback
    The correct answer is: Statement of Cash Flows

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