Introduction to Accounting Quiz

Business transactions are recorded in which books of accounts?

• Balance Sheet

• Ledger

• Income Statement

• Journal

What is ICAI?

• Institute of Certified Accountants of India

• Institute of Chartered Accountancy of India

• Institute of Chartered Accountants of India

• Institute of Chartered Agents of India

Business Transactions of ____________ nature are recorded in Accounting.

• accounting

• monetary

• non-monetary

• any

What is the main purpose of Accounting?

• To avoid paying taxes

• To hide financial information

• To communicate business results to interested parties

• To confuse people

What is the American Institute of Certified Public Accountants known for?

• Developing accounting standards & principles

• Training accountants

• Make rules of accounting

• Audit financial statements

What is the main function of the Income Statement?

• To list all the expenses of a company

• To show the financial position of a company at a specific point in time

• To summarize the revenues and expenses of a company over a period of time

• To calculate the total assets of a company

Assets are what a company ___________ that give ______ to the business

• own, status

• own, benefits

• owes, status

• owes, benefits

What is the key function of the Balance Sheet?

• To summarize the revenues and expenses of a company over a period of time

• To calculate the total assets of a company

• To show the financial position of a company at a specific point in time

• To list all the expenses of a company

______________ is an external user of accounting information.

• Customer

• Board of Management

• Investor

• Supplier

____________ is an example of Liability

• Tax

• Profit

• Loan

• Cash