Grade 11 Accounting Review Trivia Quiz

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Questions: 10 | Attempts: 8,577 | Updated: Nov 4, 2024

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Grade 11 Accounting Review Trivia Quiz - Quiz

This is a brief quiz to review grade 11 accounting material.

Questions and Answers

1.

Which of the following is not a feature of the Balance Sheet?
- A.
  
  Assets
- B.
  
  Liabilities
- C.
  
  Owner's Equity
- D.
  
  Expenses
Correct Answer
D. Expenses

Explanation
The balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time. It includes three main components: assets, liabilities, and owner's equity. These components represent what the company owns, owes, and the owner's investment in the business, respectively. Expenses, on the other hand, are not included in the balance sheet. Expenses are recorded in the income statement, which shows the company's revenues, expenses, and net income or loss over a period of time. Therefore, expenses are not a feature of the balance sheet.

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2.

A credit entry in the accounts would:
- A.
  
  Decrease an asset
- B.
  
  Increase a liability
- C.
  
  Increase the capital account
- D.
  
  All of above
- E.
  
  B and c only
Correct Answer
D. All of above

Explanation
A credit entry in the accounts would decrease an asset because it represents a decrease in the value of an asset. It would also increase a liability because it represents an increase in the amount owed by the company. Additionally, it would increase the capital account because it represents an increase in the owner's equity or investment in the business. Therefore, all of the options mentioned (a, b, and c) are correct.

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3.

The Trial Balance for a business is:
- A.
  
  Another name for a balance sheet
- B.
  
  A listing of account balances in a ledger to see if debits equal credits
- C.
  
  A statement showing profit for the fiscal year
- D.
  
  A check on the bank account balance
Correct Answer
B. A listing of account balances in a ledger to see if debits equal credits

Explanation
The Trial Balance is a listing of account balances in a ledger to see if debits equal credits. It is used to ensure the accuracy of the recorded financial transactions and the overall balance of the accounts. By comparing the total debits and credits, any discrepancies or errors can be identified and corrected before preparing the financial statements. It is not another name for a balance sheet, a statement showing profit for the fiscal year, or a check on the bank account balance.

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4.

Owner’s equity is best described as
- A.
  
  The difference between the total assets and total liabilities of a business
- B.
  
  A portion of total assets that has been bought using the owner’s money
- C.
  
  The amount of inventory bought using the owner’s money
- D.
  
  None of the above
Correct Answer
A. The difference between the total assets and total liabilities of a business

Explanation
Owner's equity represents the residual interest in the assets of a business after deducting its liabilities. It is the difference between total assets and total liabilities, reflecting the owner's claim on the company's net assets. This equity represents the owner's investment and accumulated earnings in the business.

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5.

Assets are generally listed on a balance sheet in the order of their liquidity. Liquidity means:
- A.
  
  The order in which the assets are converted into cash
- B.
  
  Their dollar value, with the highest value listed first
- C.
  
  Their dollar value, with the lowest value listed first
- D.
  
  None of the above
Correct Answer
A. The order in which the assets are converted into cash

Explanation
Liquidity refers to the ease and speed at which an asset can be converted into cash without incurring significant losses. When assets are listed on a balance sheet in the order of their liquidity, it means that the assets that can be easily and quickly converted into cash are listed first, followed by those that may take more time or effort to convert. This ordering helps in assessing the availability of cash and the ability of a company to meet its short-term obligations.

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6.

Which of the following is not a liability:
- A.
  
  Mortgage on building
- B.
  
  Bank loan on truck
- C.
  
  Accounts payable
- D.
  
  Accounts receivable
Correct Answer
D. Accounts receivable

Explanation
Accounts receivable is not a liability because it represents the money that a company is owed by its customers for goods or services already provided. It is considered an asset on the company's balance sheet, as it represents future cash inflows. In contrast, a mortgage on a building, a bank loan on a truck, and accounts payable are all examples of liabilities, as they represent obligations or debts that the company owes to others.

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7.

Which of the following reflects the effect on the accounting equation of a purchase of an item of plant and equipment, for cash?
- A.
  
  Assets increase: equity decreases
- B.
  
  Assets decrease: equity increases
- C.
  
  Assets decrease: equity unchanged
- D.
  
  Assets unchanged: equity unchanged
Correct Answer
D. Assets unchanged: equity unchanged

Explanation
When an item of plant and equipment is purchased for cash, it means that the company is using its own resources to acquire the asset. As a result, there is no change in the total assets of the company because the cash used to make the purchase is simply converted into the plant and equipment. Similarly, there is no change in equity because the company is not taking on any new liabilities or issuing any new shares. Therefore, both assets and equity remain unchanged in this transaction.

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8.

Which of the following reflects the effects on the accounting equation of a payment to creditors?
- A.
  
  Assets decrease: ownership interest decreases
- B.
  
  Assets decrease: ownership interest increases.
- C.
  
  Assets decrease: liabilities decrease
- D.
  
  Assets increase: liabilities decrease
Correct Answer
C. Assets decrease: liabilities decrease

Explanation
When a payment is made to creditors, it reduces the assets of the company because cash is going out. At the same time, the liabilities decrease because the company is paying off its debts. This means that both sides of the accounting equation are affected in the same direction - assets decrease and liabilities decrease. There is no impact on ownership interest in this scenario.

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9.

The fundamental accounting equation is usually expressed as:
- A.
  
  Assets – liability = owner’s equity
- B.
  
  Assets = liability – owner’s equity
- C.
  
  Assets = liabilities + owners equity
- D.
  
  Owner’s equity = assets = liability
Correct Answer
C. Assets = liabilities + owners equity

Explanation
The correct answer is assets = liabilities + owners equity. This equation represents the fundamental accounting equation, which states that the total assets of a company are equal to the sum of its liabilities and owner's equity. This equation is the foundation of double-entry bookkeeping and helps to ensure that the accounting equation remains in balance.

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3
10.

An Income Statement is:
- A.
  
  A listing of the account balances in a ledger
- B.
  
  A statement showing the financial position of a person, business or other organization
- C.
  
  A financial statement that summarizes the items of revenue and expense, and shows, the net income or net loss of a business for a given period of time
- D.
  
  All of the above
Correct Answer
C. A financial statement that summarizes the items of revenue and expense, and shows, the net income or net loss of a business for a given period of time

Explanation
The correct answer is "a financial statement that summarizes the items of revenue and expense, and shows, the net income or net loss of a business for a given period of time." This answer accurately describes an income statement, which is a financial statement that provides a summary of a business's revenues, expenses, and net income or net loss over a specific period. It is used to assess the profitability and financial performance of a business. The other options listed in the question do not accurately describe an income statement.

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Current Version
Nov 04, 2024

Quiz Edited by
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Jan 28, 2011

Quiz Created by
Mscuttle

Grade 11 Accounting Review Trivia Quiz

Which of the following is not a feature of the Balance Sheet?

A credit entry in the accounts would:

The Trial Balance for a business is:

Owner’s equity is best described as

Assets are generally listed on a balance sheet in the order of their liquidity. Liquidity means:

Which of the following is not a liability:

Which of the following reflects the effect on the accounting equation of a purchase of an item of plant and equipment, for cash?

Which of the following reflects the effects on the accounting equation of a payment to creditors?

The fundamental accounting equation is usually expressed as:

An Income Statement is: