#1
Which of the following is a primary purpose of small business accounting?
To track revenue and expenses
To advertise the business
To hire employees
To develop new products
#2
What is the deadline for filing federal income tax returns for most small businesses?
April 15
March 15
June 30
May 1
#3
Which of the following is a common accounting software used by small businesses?
Microsoft Excel
Adobe Photoshop
QuickBooks
Google Chrome
#4
Which of the following is an example of a current asset?
Buildings
Land
Accounts receivable
Equipment
#5
Which of the following is an example of an operating expense?
Loan payments
Purchase of inventory
Salary of sales staff
Purchase of a new building
#6
Which of the following is a deductible business expense for tax purposes?
Personal groceries
Employee salaries
Vacation expenses
Clothing for personal use
#7
What is the purpose of the balance sheet in small business accounting?
To track income and expenses over time
To list all assets, liabilities, and equity
To summarize revenue and expenses
To calculate taxable income
#8
What is the purpose of the cash flow statement in small business accounting?
To show the business's profit or loss
To track the flow of cash in and out of the business
To calculate the business's tax liability
To list all assets, liabilities, and equity
#9
Which accounting method records income and expenses when they are incurred, regardless of when cash is exchanged?
Cash basis accounting
Accrual basis accounting
Hybrid basis accounting
Modified basis accounting
#10
What is the purpose of the profit and loss statement in small business accounting?
To list all assets, liabilities, and equity
To track income and expenses over time
To calculate taxable income
To summarize revenue and expenses
#11
What is the purpose of the general ledger in small business accounting?
To record all financial transactions
To calculate employee salaries
To track changes in market value
To list all assets, liabilities, and equity
#12
Which of the following is an example of a tax deduction for small businesses?
Health insurance premiums
Personal clothing purchases
Gifts for friends
Vacation expenses
#13
What is the purpose of depreciation in small business accounting?
To increase the value of assets
To reduce taxable income
To track changes in market value
To calculate employee salaries
#14
Which form is commonly used by small businesses to report their annual income to the IRS?
Form 1040
Form 1099
Form W-2
Form 1120
#15
Which of the following is an example of a contra-asset account?
Accumulated depreciation
Accounts receivable
Inventory
Equipment
#16
Which accounting principle requires that expenses be recorded when they are incurred, regardless of when cash is exchanged?
Matching principle
Revenue recognition principle
Conservatism principle
Materiality principle