30 Questions
Which of the following is an example of an asset in accounting?
Cash
Which of the following is an example of a liability in accounting?
Accounts payable
Which of the following is an example of owner's equity in accounting?
Capital
Which of the following transactions would result in an increase in owner's equity?
Investment by owner
Which of the following is one of the assumptions of accounting?
The economic entity assumption
Which of the following is an example of a form of business ownership?
The relevance principle
Which of the following is the primary accounting standard-setting body in the United States?
The Financial Accounting Standards Board (FASB)
Which of the following is true about the historical cost principle?
Assets should be reported at their cost
Which of the following is NOT one of the three basic activities of accounting?
Analyzing
Which of the following is NOT a component of the accounting equation?
Expenses
Who are the two most common types of external users of accounting data?
Investors and company officers
Which of the following is NOT one of the recent financial scandals mentioned?
Microsoft
Which financial statement reports the revenues and expenses for a specific period of time?
Income Statement
Which financial statement reports the changes in owner's equity for a specific period of time?
Owner's Equity Statement
Which financial statement reports the assets, liabilities, and owner's equity at a specific date?
Balance Sheet
Which financial statement shows the inflows and outflows of cash during a specific period of time?
Statement of Cash Flows
Which financial statement is prepared as of a specific date?
Balance sheet
What information does the statement of cash flows provide?
All of the above
What is the total assets of Flanagan Company at December 31, 2017?
$27,000
What is the net income reported for December 2017 for Flanagan Company?
$16,500
Which transaction represents the purchase of advertising on credit?
Transaction 5
Which transaction represents the payment of expenses in cash for September?
Transaction 7
Which transaction represents the payment of accounts payable in cash?
Transaction 8
Which transaction represents the receipt of cash from customers who had been billed for services?
Transaction 9
Which organization is responsible for developing accounting standards in the United States?
Financial Accounting Standards Board (FASB)
Which accounting standard is considered to be more principles-based?
International Financial Reporting Standards (IFRS)
Which accounting standard is considered to be more rules-based?
Generally Accepted Accounting Principles (GAAP)
Which companies are required to comply with the internal control standards of Sarbanes-Oxley (SOX)?
Large public companies listed on U.S. exchanges
What is the goal of the IASB and the FASB in developing accounting standards?
To eliminate major differences in accounting practices
Which of the following is not a reason why a single set of high-quality international accounting standards would be beneficial?
Non-U.S. companies
Test your knowledge on financial statements and their components with this quiz. Learn about the importance of balancing total assets and liabilities, as well as understanding the snapshot nature of the balance sheet. Explore the statement of cash flows and delve into the details of cash receipts and payments. Discover how the statement of cash flows provides insights into the sources and uses of cash.
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