Understanding Accounting Source Documents and Principles Quiz

Test your knowledge with questions on accounting source documents, principles, and practices. Prepare for success!

#1

Which of the following is an example of an accounting source document?

Sales invoice
Email communication
Employee handbook
Marketing brochure
#2

Which of the following documents is used to record the sale of goods or services to a customer?

Purchase order
Payroll register
Sales invoice
Purchase return
#3

Which document is used to record the purchase of inventory from a supplier?

Sales receipt
Purchase order
Cash receipt
Trial balance
#4

Which document is used to record a return of merchandise to a supplier for a refund?

Sales invoice
Credit memo
Purchase order
Receipt voucher
#5

What is the purpose of a general ledger?

To record day-to-day transactions
To prepare financial statements
To track inventory levels
To communicate with customers
#6

Which document is used to record the payment of wages to employees?

Purchase order
Payroll register
Sales invoice
Cash disbursement journal
#7

Which document is used to record the receipt of cash from a customer?

Sales invoice
Purchase order
Cash receipt
Journal entry
#8

What principle requires that an organization's financial statements be prepared assuming that the business will continue operating indefinitely?

Cost principle
Going concern principle
Revenue recognition principle
Matching principle
#9

Which accounting principle states that assets should be recorded at their original cost?

Revenue recognition principle
Matching principle
Cost principle
Conservatism principle
#10

According to the accrual basis of accounting, when are revenues recognized?

When cash is received
When expenses are incurred
When products are sold or services are rendered
When bills are paid
#11

Which accounting principle dictates that expenses should be recognized in the period in which they are incurred, regardless of when the cash payment occurs?

Revenue recognition principle
Conservatism principle
Materiality principle
Matching principle
#12

Which accounting principle requires that financial statements should be based on evidence that can be verified?

Matching principle
Materiality principle
Objectivity principle
Conservatism principle
#13

Which accounting principle states that an entity should use the same accounting methods and procedures from period to period?

Revenue recognition principle
Consistency principle
Materiality principle
Cost principle
#14

Which of the following is an example of an internal accounting document?

Sales receipt
Income statement
Cash disbursement journal
Financial statement
#15

Under which accounting principle should expenses be recognized in the same period as the revenue they help to generate?

Cost principle
Matching principle
Consistency principle
Materiality principle
#16

Under the principle of conservatism, which direction are estimates biased?

Overstated
Understated
Not biased
Consistently estimated
#17

According to the accounting equation, what is the formula for calculating owner's equity?

Assets - Liabilities
Liabilities - Assets
Assets + Liabilities
Liabilities + Owner's Equity
#18

Which accounting principle requires that expenses should be recognized in the period in which they contribute to revenue?

Conservatism principle
Revenue recognition principle
Matching principle
Materiality principle
#19

What does the accounting principle of materiality emphasize?

The importance of timely recording of transactions
The need for accurate financial statements
The significance of insignificant items in financial reporting
The impact of accounting errors on financial statements
#20

According to the revenue recognition principle, when should revenue be recognized?

When cash is received
When the product is ordered
When services are rendered or goods are delivered
When the customer signs a contract

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