Financial Transactions and Account Management Quiz

Test your knowledge of accounting with questions on transactions, bank accounts, balance sheets, credit cards & more.

Practice Learn Test

Which of the following is an example of a financial transaction?

Buying groceries with cash

Reading a book

Going for a walk

Watching a movie

What is the purpose of a bank account?

To save money

To spend money

To invest in stocks

To buy a house

Which of the following is NOT a type of bank account?

Savings account

Checking account

Loan account

Investment account

What is the purpose of a balance sheet?

To record financial transactions

To calculate profit or loss

To assess the financial health of a business

To pay taxes

What is the difference between debit and credit?

Debit means increasing assets, while credit means decreasing assets

Debit means decreasing assets, while credit means increasing assets

Debit means increasing liabilities, while credit means decreasing liabilities

Debit means decreasing liabilities, while credit means increasing liabilities

Which financial statement shows the revenues and expenses of a company?

Balance sheet

Income statement

Cash flow statement

Statement of retained earnings

What is the purpose of a cash flow statement?

To show the profitability of a company

To track the movement of cash in and out of a business

To calculate the taxes owed by a company

To determine the market value of a company

Which of the following is an example of an operating expense?

Purchasing a new building

Paying employee salaries

Buying stocks

Acquiring a patent

What is the role of a credit card?

To withdraw cash from an ATM

To make purchases with borrowed money

To receive payments from others

To invest in the stock market

#10

What is the purpose of reconciling a bank statement?

To match the transactions in the bank statement with the transactions in the company's records

To calculate the interest earned on the bank account

To determine the total balance of the company's accounts

To identify fraudulent transactions

#11

Which of the following is a characteristic of a good budget?

It is flexible and can be easily changed

It allows for overspending in certain categories

It does not need to be reviewed regularly

It focuses only on short-term goals

#12

What is the purpose of a financial audit?

To ensure compliance with tax laws

To verify the accuracy of financial statements

To calculate the company's profit margin

To identify potential investment opportunities

#13

What is the purpose of the Securities and Exchange Commission (SEC)?

To regulate the stock market

To issue currency

To manage government bonds

To set interest rates

#14

Which of the following is an example of a non-cash transaction?

Purchasing inventory with cash

Paying off a loan with cash

Depreciation of equipment