Basic Accounting Concepts Quiz

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PreciousErudition
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15 Questions

Which financial statement is used to calculate profits and losses?

Income statement

What is the main purpose of break even point analysis?

To determine the amount of sales needed to cover costs

What is the difference between fixed and current assets?

Fixed assets have a longer maturity date than current assets

Which financial statement is used to calculate taxation?

Income statement

What are the three types of activities that cash flow is based on?

Operating, investment, and financing

What is the major goal of the income statement?

To calculate profits and losses

What is the difference between proprietorships, partnerships, and corporations?

The number of owners

What does the break even point analysis calculate?

The amount of revenue needed to cover all costs

What determines the distinction between fixed and current assets?

The maturity date of the investments

What is the main factor that determines whether an asset is considered fixed or current?

The due time maturity of the investment

What does the break even point analysis calculate?

The sales needed to cover costs

What are the three main types of firms?

Sole proprietorships, partnerships, and limited liability companies

What is the basis for calculating total assets?

Liabilities and equity

When should firms elaborate their financial statements?

At the end of the fiscal year

What is the basis for the present value break even point investment rule?

Opportunity cost of the initial investment

Test your knowledge of basic accounting concepts with this quiz! From taxation and cash flow to fixed and current assets, this quiz covers key terms and ideas in accounting. See how much you know about income statements, break even point analysis, and more.

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