Basic Accounting Knowledge Review Quiz

What would be the primary responsibility of Oscar from The Office, who is an accountant at Dunder Mifflin?

• A. Studying the laws related to financial transactions

• B. Managing the day-to-day operations of the business

• C. Recording the financial transactions of the company

• D. Studying and implementing marketing strategies

What would be considered an asset in the context of Dunder Mifflin Paper Company?

• A. The amount Dunder Mifflin owes to its paper suppliers

• B. The cost of the paper used in the production

• C. The Scranton branch building owned by Dunder Mifflin

• D. The revenue generated from selling paper

Michael Scott, the regional manager of Dunder Mifflin, is trying to understand the company's financial health. Which equation should he use to represent the Accounting Equation?

• A. Assets = Liabilities + Owner's Equity

• B. Assets + Liabilities = Owner's Equity

• C. Assets = Liabilities - Owner's Equity

• D. Assets - Liabilities = Owner's Equity

Michael Scott, the regional manager of Dunder Mifflin, has to deal with a lot of things in the office. In the context of accounting, if he has to pay for the office's electricity bill, what would that be considered as?

• A. A type of asset for Dunder Mifflin

• B. Something owed by Dunder Mifflin

• C. A type of equity for Dunder Mifflin

• D. Revenue of Dunder Mifflin

Michael Scott, the regional manager of Dunder Mifflin, is going through the company's accounts. Which of the following would he consider as an expense?

• A. The cash in the office petty cash box

• B. The amount owed to the Scranton City Paper Company

• C. The salaries paid to his employees

• D. The office building owned by Dunder Mifflin

Michael Scott's Dunder Mifflin branch's revenue is:

• A. Money spent by the Scranton branch

• B. Money owned by the Scranton branch

• C. Money earned by the Scranton branch

• D. Money invested in the Scranton branch

During a meeting at Dunder Mifflin, Oscar is explaining the company's finances. He uses the term 'Credit'. In the context of accounting, what does 'Credit' mean?

• A. It means an increase in the company's assets

• B. It signifies a decrease in the company's liabilities

• C. It represents an increase in the company's liabilities or equity

• D. It indicates a decrease in the company's expenses

At the end of the fiscal year, Dunder Mifflin needs to assess its financial standing. Which document would best represent the company's financial position at a specific point in time?

• A. Income Statement

• B. Balance Sheet

• C. Cash Flow Statement

• D. Statement of Owner's Equity

Imagine you're the accountant for Dunder Mifflin. Over time, you notice that the value of the company's copier has been decreasing. What is this phenomenon called?

• A. Appreciation of the asset

• B. Depreciation of the asset

• C. A method to increase revenue

• D. A type of liability

Michael Scott, the regional manager of Dunder Mifflin, is trying to understand the principle of 'Matching' in accounting. He thinks it means:

• A. Matching the office assets with liabilities

• B. Recording office expenses in the period they are incurred

• C. Matching office credits with debits

• D. Balancing the office accounting equation