Accounting Principles Quiz
10 Questions
0 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 principle requires that a company's financial statements are complete and accurately reflect its financial position?

  • Full disclosure principle (correct)
  • Economic entity assumption
  • Going concern principle
  • Matching principle

What principle of accounting dictates that expenses should be matched with the revenues they help to generate?

  • Consistency principle
  • Matching principle (correct)
  • Relevance principle
  • Fair value principle

Which accounting principle implies that a business will continue operating indefinitely?

  • Accrual principle
  • Going concern principle (correct)
  • Monetary unit assumption
  • Historical cost principle

What assumption underlies the separation of a business's financial transactions from its owner's personal financial transactions?

<p>Economic entity assumption (D)</p> Signup and view all the answers

Which principle requires that financial information should be reported in a way that is understandable to the users?

<p>Understandability principle (C)</p> Signup and view all the answers

What is the first step in the accounting cycle?

<p>Collect source documents (C)</p> Signup and view all the answers

Which step follows the posting into the ledger?

<p>Extract a trial balance (A)</p> Signup and view all the answers

What is required after extracting the trial balance?

<p>Make adjustments (B)</p> Signup and view all the answers

At what stage are adjustments reflected in the financial records?

<p>Prepare adjusted trial balance (D)</p> Signup and view all the answers

Which step is the last in the accounting cycle?

<p>Create final accounts (B)</p> Signup and view all the answers

Flashcards

Accounting Equation

Assets = Liabilities + Equity

Revenue

Increases in assets or decreases in liabilities from the sale of goods or services.

Expense

Costs incurred in generating revenue.

Assets

Resources owned by a company.

Signup and view all the flashcards

Liabilities

Obligations of the company.

Signup and view all the flashcards

Source Documents

Original records of business transactions.

Signup and view all the flashcards

Journalize

Recording transactions in a journal.

Signup and view all the flashcards

Trial Balance

A summary of balances in accounts.

Signup and view all the flashcards

Adjustments

Corrections made to accounts.

Signup and view all the flashcards

Final Accounts

Comprehensive financial statements.

Signup and view all the flashcards

Study Notes

Steps of the Accounting Cycle

  • Collect source documents
  • Journalize
  • Post into ledger
  • Extract a trial balance
  • Make adjustments
  • Prepare adjusted trial balance
  • Create final accounts

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Description

Test your knowledge of fundamental accounting principles with this quiz. Explore concepts such as completeness of financial statements, matching expenses with revenues, and the going concern assumption. Perfect for students studying accounting and finance.

More Like This

Use Quizgecko on...
Browser
Browser