Accounting Quiz

What is the purpose of a sales receipt?

• To track inventory levels

• To manage employee payroll

• To calculate taxes

• To provide evidence of a transaction

What is a journal in accounting?

• A list of company assets

• A record of employee hours

• A summary of financial statements

• A book of original entry

What does a general journal show?

• The balance of each account

• Only the total revenue

• Debit and credit effects on specific accounts

• The company's profit margin

What is included in a complete journal entry?

• Date, accounts, amounts, and explanation

• The total revenue for the month

• Only the account titles

• Only the date and amounts

What is the benefit of using a journal?

• It shows only the total expenses

• It helps prevent or locate errors

• It lists all employee salaries

• It provides a summary of cash flow

What is the general ledger?

• The entire group of accounts maintained by a company

• A record of daily transactions

• A summary of cash transactions only

• A list of all employees

What does a trial balance do?

• Proves the mathematical equality of debits and credits

• Calculates the total revenue for the year

• Tracks inventory levels

• Lists all employee salaries

What is the purpose of the income statement?

• To list all assets and liabilities

• To report net income or net loss for a specific period

• To track employee performance

• To summarize cash transactions

What is included in the revenue section of an income statement?

• Owner's equity

• Total revenue earned from different sources

• Net income or net loss

• Total expenses incurred

What is the first step in preparing a trial balance?

• List the account titles and their normal balances

• List all expenses

• Calculate total revenue

• Summarize cash transactions