lemoncucumber's Quiz

Question 1

What is the systematic process of identifying, measuring, recording, and communicating financial information about a business called?

Accepted Answer

2

Question 2

A business owned and operated by one person is called a sole proprietorship.

Accepted Answer

o

Question 3

What type of business activity involves the flow of money between a business and its creditors or owners?

Accepted Answer

Financing Activities

Question 4

The accounting concept that treats a business as separate from its owners is known as the:

Accepted Answer

2

Question 5

Assets are resources controlled by the business that are expected to provide future economic benefits.

Accepted Answer

o

Question 6

Which of the following is NOT typically considered an asset of a business?

Accepted Answer

2

Question 7

What is the term for the residual interest in the assets of a business after deducting all its liabilities?

Accepted Answer

Equity

Question 8

Revenue is the total income a company earns from its primary business operations before subtracting expenses.

Accepted Answer

o

Question 9

Which of the following is an example of an expense for a business?

Accepted Answer

1

Question 10

A book where all financial transactions are initially recorded is called the General Ledger.

Accepted Answer

x

Question 11

What is the primary purpose of a trial balance?

Accepted Answer

2

Question 12

Adjusting entries are made to apply the accrual concept of accounting.

Accepted Answer

o

Question 13

What is the term for ledgers that support the main general ledger account?

Accepted Answer

Subsidiary Ledgers

Question 14

A credit entry typically increases which of the following account types?

Accepted Answer

2

Question 15

The mnemonic 'DEAD' helps remember accounts that typically have a debit balance.

Accepted Answer

o

Question 16

Which of the following accounts normally has a credit balance?

Accepted Answer

2

Question 17

The Statement of Financial Position is also known as the Balance Sheet.

Accepted Answer

o

Question 18

Which of the following are considered permanent accounts that appear on the Balance Sheet?

Accepted Answer

1

Question 19

What is the fundamental accounting equation that the Balance Sheet follows?

Accepted Answer

Assets = Liabilities + Equity

Question 20

Cash, accounts receivable, and inventory are examples of current assets.

Accepted Answer

o