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    Quizzes

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    Angela Neuane
    The document contains three quizzes testing knowledge of financial accounting basics, financial statements, and accounting concepts and principles. It includes multiple choice questions about the purpose of financial accounting, components of financial statements, and accounting principles such as revenue recognition, matching principle, and going concern concept.

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    Quizzes

    Uploaded by

    Angela Neuane
    5 views3 pages
    The document contains three quizzes testing knowledge of financial accounting basics, financial statements, and accounting concepts and principles. It includes multiple choice questions about the purpose of financial accounting, components of financial statements, and accounting principles such as revenue recognition, matching principle, and going concern concept.

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    The document contains three quizzes testing knowledge of financial accounting basics, financial statements, and accounting concepts and principles. It includes multiple choice questions about the purpose of financial accounting, components of financial statements, and accounting principles such as revenue recognition, matching principle, and going concern concept.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    5 views3 pages

    Quizzes

    Uploaded by

    Angela Neuane
    The document contains three quizzes testing knowledge of financial accounting basics, financial statements, and accounting concepts and principles. It includes multiple choice questions about the purpose of financial accounting, components of financial statements, and accounting principles such as revenue recognition, matching principle, and going concern concept.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    **Quiz 1: Financial Accounting Basics**

    1. What is the purpose of financial accounting?


    a) To make managerial decisions
    b) To communicate financial information to external stakeholders
    c) To forecast future cash flows
    d) To manage internal controls

    2. Which financial statement shows the revenues and expenses of a company over a specific
    period?
    a) Balance sheet
    b) Income statement
    c) Statement of cash flows
    d) Statement of retained earnings

    3. What is the accounting equation?


    a) Assets = Liabilities + Equity
    b) Assets + Liabilities = Equity
    c) Liabilities = Assets + Equity
    d) Equity = Assets - Liabilities

    4. Which of the following represents an asset?


    a) Accounts payable
    b) Accounts receivable
    c) Common stock
    d) Dividends

    5. What does GAAP stand for?


    a) Generally Accepted Accounting Principles
    b) Generally Accepted Auditing Procedures
    c) Generally Approved Accounting Principles
    d) Generally Approved Auditing Procedures

    **Quiz 2: Financial Statements**

    1. Which financial statement reports a company's assets, liabilities, and equity at a specific point
    in time?
    a) Income statement
    b) Balance sheet
    c) Statement of cash flows
    d) Statement of retained earnings
    2. What does the income statement measure?
    a) Cash flow of a company
    b) Financial position of a company
    c) Profitability of a company
    d) Changes in equity of a company

    3. Which financial statement shows the sources and uses of cash during a specific period?
    a) Income statement
    b) Balance sheet
    c) Statement of cash flows
    d) Statement of retained earnings

    4. What does the statement of retained earnings reconcile?


    a) Changes in cash from operating, investing, and financing activities
    b) Changes in equity from dividends and stock issuances
    c) Changes in equity from net income or loss and dividends
    d) Changes in assets and liabilities from operating activities

    5. What is the formula for calculating net income?


    a) Revenues - Expenses
    b) Assets - Liabilities
    c) Revenues + Expenses
    d) Liabilities - Equity

    **Quiz 3: Accounting Concepts and Principles**

    1. What is the principle that requires revenue to be recognized when it is earned and expenses
    to be recognized when they are incurred?
    a) Matching principle
    b) Revenue recognition principle
    c) Conservatism principle
    d) Materiality principle

    2. What principle states that accounting information should be relevant, reliable, and
    comparable?
    a) Consistency principle
    b) Materiality principle
    c) Reliability principle
    d) Cost principle

    3. Which of the following accounting concepts assumes that a company will continue to operate
    indefinitely?
    a) Time period concept
    b) Going concern concept
    c) Cost concept
    d) Entity concept

    4. What concept requires that assets be recorded at their original purchase cost?
    a) Conservatism concept
    b) Consistency concept
    c) Historical cost concept
    d) Full disclosure concept

    5. What concept requires that expenses be recognized in the same period as the revenues they
    help generate?
    a) Materiality concept
    b) Matching concept
    c) Consistency concept
    d) Entity concept

    **Answers:**

    Quiz 1: 1. b) 2. b) 3. a) 4. b) 5. a)
    Quiz 2: 1. b) 2. c) 3. c) 4. c) 5. a)
    Quiz 3: 1. b) 2. c) 3. b) 4. c) 5. b)

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