Elementary Accounting Quiz

Accounting refers to __________

• A process of creating and maintaining financial records.

• Calculating mathematical equations

• Managing human resources in an organization

• Designing computer software programs

Bookkeeping is defined as ___________

• The systematic recording and organising of financial transactions

• Analyzing and interpreting financial statements

• Strategic planning for business growth

• Managing the legal aspects of a company

The main role of accounting in decision-making is _________________

• Providing detailed transaction records

• Summarizing financial statements

• Offering decision-relevant information

• Ensuring legal compliance

Which accounting principle states that you should record expenses and liabilities as soon as possible but to wait to record revenues until they are realised?

• Conservatism principles

• Revenue recognition principles

• Time period principles

• Matching principles

GAAP in accountancy field stands for _________________

• General Accounting and Auditing Practices

• General Accepted Accounting Principles

• Global Accounting and Auditing Procedures

• General Analysis of Accounting Principles

Which of the following are the internal users of accounting?

• Management, supplier, employees and head of department

• Supplier, banker, government and stakeholder

• Head of department, management, employees and owner

• Employees, creditors, researchers and consumers

Which of the following is the criteria that there is no distinction between business and owner?

• Partnership

• Private Limited Company

• Public Limited Company

• Sole proprietorship

Which of the following associate with the characteristics of "easy to establish - partners can combine expertise and distribute the workload.

• Sole proprietorship

• Private Limited Company

• Partnership

• Public Limited Company

Profit will be shared to the shareholders as dividends is the characteristics of a ____

• Partnership

• Limited Company

• Sole proprietorship

• Joint venture company

The idea of this principle is to emphasize of financial transactions of the business should be separated from personal transaction.

• Consistency

• Prudence

• Money measurement

• Separate legal entity