15 Questions
What is the main purpose of accounting?
To measure the results of an organization's economic activities
Which field of accounting focuses on the reporting of financial information to external users?
Financial accounting
What is the primary focus of management accounting?
Measurement, analysis, and reporting of information for internal use by management
What do practitioners of accounting refer to as?
Accountants
What are the synonyms often used for the term 'accounting'?
Financial reporting
What is the primary characteristic of a reserve in financial accounting?
It always has a credit balance
Where can a reserve appear in shareholders' equity?
Any part except contributed or basic share capital
What is the purpose of an 'operating reserve' in nonprofit accounting?
Unrestricted cash available to sustain the organization
What are the different types of reserves used in financial accounting?
Capital reserves, revenue reserves, statutory reserves, realized reserves, unrealized reserves
From where can equity reserves be created?
Shareholders' contributions
What is the primary characteristic of a reserve in financial accounting?
Always has a credit balance
Where can a reserve appear in shareholders' equity?
Any part except for contributed or basic share capital
What is the purpose of an 'operating reserve' in nonprofit accounting?
Unrestricted cash available to sustain the organization
From which sources are equity reserves created?
Shareholders' contributions
What is the purpose of an 'Operating Reserve Ratio' specified by nonprofit boards?
Maintaining several months of operating cash or a percentage of their annual income
Test your knowledge of accounting principles, concepts, and terminology with this quiz. Challenge yourself with questions about financial statements, double-entry bookkeeping, GAAP, and more. Whether you're a student, professional, or simply curious about accounting, this quiz will help you assess your understanding of this essential aspect of business and finance.
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