Quiz on Introduction to Accounting

What is the primary purpose of accounting?

• To provide entertainment

• To create marketing strategies

• To identify and record economic information

• To manage human resources

Which of the following is NOT a branch of accounting?

• Tax Accounting

• Marketing Accounting

• Managerial Accounting

• Financial Accounting

What is the first step in the accounting process?

• Communicating

• Recording

• Identifying

• Classifying

Who is considered the father of modern accounting?

• Adam Smith

• Luca Pacioli

• John Maynard Keynes

• Karl Marx

What type of information does accounting provide?

• Both quantitative and qualitative information

• Only financial information

• Only qualitative information

• Only quantitative information

Which of the following is an internal user of accounting information?

• Public

• Business owners

• Creditors

• Investors

What is the process of recording identified accountable events called?

• Communicating

• Summarizing

• Journalizing

• Posting

What form of business organization is characterized by limited liability?

• Partnership

• Corporation

• Cooperative

• Sole proprietorship

Which of the following is NOT a type of business according to activities?

• Consulting

• Merchandising

• Manufacturing

• Service business

What is the main function of accounting for external users?

• To conduct market research

• To prepare tax returns

• To provide information for investment and credit decisions

• To manage daily operations