Accounting Basics Quiz

Which of the following are examples of assets?

• Cash

• Accounts Payable

• Equipment

• Owner's Equity

Which of the following are examples of expenses?

• Rent

• Accounts Receivable

• Salaries

• Liabilities

What is the cost of goods sold?

• The total value of goods and services sold by a company

• The cost of producing or purchasing the goods that were sold

• The total expenses incurred by a company

• The total revenue generated by a company

What type of business primarily buys and sells goods?

• Trading Business

• Service Business

• Manufacturing Business

• Accounting Business

What is the purpose of a general journal?

• To record transactions in chronological order before they are posted to the ledger

• To summarise all the accounts used by a company

• To calculate the total value of a company's assets

• To reconcile the balances of all accounts

What is a perpetual inventory system?

• A method of tracking inventory that involves counting physical inventory on a periodic basis

• A method of recording inventory transactions as they occur in real-time

• A system used to calculate the cost of goods sold at the end of the accounting period

• A system used to monitor the movement of inventory between different locations

Revenue is the money a company earns from providing goods or services to its customers.

• True

• False

Goods and Services Tax (GST) is a type of sales tax collected by businesses on behalf of the government.

• True

• False

Drawings refer to the withdrawal of assets by the owner for personal use.

• True

• False

Net income is calculated by subtracting expenses from revenue.

• True

• False