Accounting Basics Quiz
10 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which field of accounting focuses on reporting financial information to external users?

  • Tax accounting
  • Management accounting
  • Financial accounting (correct)
  • Cost accounting

What is the main purpose of accounting?

  • Managing internal operations efficiently
  • Maximizing profits for businesses
  • Measuring and conveying economic activity information (correct)
  • Minimizing tax liabilities for organizations

What is the primary focus of management accounting?

  • Preparation of financial statements for external stakeholders
  • Designing accounting information systems
  • Measurement, analysis, and reporting for internal use by management (correct)
  • Recording financial transactions for bookkeeping purposes

What is the most common system used for bookkeeping?

<p>Double-entry bookkeeping (D)</p> Signup and view all the answers

What are accounting information systems designed to support?

<p>Accounting functions and related activities (A)</p> Signup and view all the answers

What is the main purpose of straight-line depreciation?

<p>To spread the cost of a fixed asset evenly over its useful life (A)</p> Signup and view all the answers

What are the inputs required to calculate straight-line depreciation?

<p>Asset cost, useful life, and estimated salvage value (C)</p> Signup and view all the answers

What is the depreciable base used for in straight-line depreciation?

<p>To calculate the annual depreciation expense (C)</p> Signup and view all the answers

Which accounting principle does straight-line depreciation comply with?

<p>Generally Accepted Accounting Principles (GAAP) (C)</p> Signup and view all the answers

What does straight-line depreciation allow a business to match?

<p>Expense recognition with the revenue those expenses support (C)</p> Signup and view all the answers

More Like This

Introduction to Accounting
10 questions
Accounting Basics Quiz
5 questions
Introduction to Accounting
10 questions
Accounting Fundamentals Quiz
15 questions
Use Quizgecko on...
Browser
Browser