Financial Accounting Concepts and Business Organizations Quiz
Test your knowledge on financial accounting concepts, principles, and business organization types. Perfect for students and professionals alike.
#1
Which financial statement reports a company's revenues and expenses over a specific period?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#2
Which financial statement reports a company's assets, liabilities, and shareholders' equity at a specific point in time?
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
#3
Which of the following is a basic accounting equation?
Assets = Liabilities + Equity
Revenue = Expenses
Assets = Equity
Liabilities = Equity
#4
Which financial statement shows the changes in retained earnings over a specific period?
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
#5
Which of the following is an example of an intangible asset?
Inventory
Equipment
Goodwill
Land
#6
Which of the following is not a characteristic of a sole proprietorship?
Limited liability
Single owner
Easy to establish
Owner has full control
#7
Which accounting principle requires that expenses are recorded when they are incurred, regardless of when the payment is made?
Matching principle
Revenue recognition principle
Consistency principle
Materiality principle
#8
Under which business entity is ownership represented by shares of stock, with limited liability for shareholders?
Partnership
Sole proprietorship
Corporation
Limited liability company (LLC)
#9
Which of the following is not a component of shareholders' equity?
Common Stock
Dividends
Retained Earnings
Treasury Stock
#10
Which accounting principle requires that assets and liabilities are initially recorded at their acquisition cost?
Materiality principle
Consistency principle
Cost principle
Matching principle
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Financial Accounting
Popular Quizzes in Business
Report