Basic Accounting Quiz! Trivia Exam

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| By Pabloapx

Pabloapx

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Quizzes Created: 1 | Total Attempts: 306

Questions: 12 | Attempts: 308 | Updated: Oct 8, 2024

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Questions and Answers

1.

What is the normal balance for an expense account?
- A.
  
  Credit
- B.
  
  Debit
- C.
  
  I don't care
- D.
  
  None of the above
Correct Answer
B. Debit

Explanation
The normal balance for an expense account is debit. This means that expenses are typically recorded as debits in the accounting system. Debits increase expense accounts, while credits decrease them. This is because expenses are considered to be decreases in the company's assets or increases in its liabilities, and these types of transactions are recorded as debits.

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2.

A_______ lists each of the accounts in the general ledger with its balance as of a particular date.

Correct Answer
Trial Balance

Explanation
A Trial Balance is a financial statement that lists each account in the general ledger along with its balance as of a specific date. It is used to ensure that the total debit balances equal the total credit balances in the ledger, which helps in identifying any errors or discrepancies in the recording of financial transactions. The Trial Balance is an important tool for accountants to verify the accuracy of their work and to prepare accurate financial statements.

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4
3.

When revenues are greater than expenses you have _______.

Correct Answer
Net Income

Explanation
When revenues are greater than expenses, it means that the company has generated more income than it has spent on its operations. This positive difference between revenues and expenses is known as net income. Net income represents the profitability of a company and indicates that it has made a profit during a specific period of time. It is calculated by subtracting total expenses from total revenues.

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4
4.

An Owner's Equity Statement is used to report a business's financial progress.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
An Owner's Equity Statement is not used to report a business's financial progress. It is a financial statement that shows the changes in the owner's equity of a business over a specific period of time. It includes information about the initial investments, additional investments, withdrawals, and net income of the owner. The purpose of an Owner's Equity Statement is to provide information about the changes in the owner's ownership interest in the business, rather than the overall financial progress of the business.

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5.

Financial Statement that shows the Cost of Merchandise Sold.
- A.
  
  Adjusting Entries
- B.
  
  Balance Sheet
- C.
  
  Income Statement
- D.
  
  Owner's Equity Statement
Correct Answer
C. Income Statement

Explanation
The income statement is the correct answer because it is the financial statement that shows the cost of merchandise sold. The income statement provides a summary of a company's revenues, expenses, and net income or loss for a specific period. It includes the cost of goods sold, which represents the direct costs associated with producing or purchasing the merchandise that was sold during the period. By subtracting the cost of goods sold from the revenues, the income statement calculates the gross profit or gross loss generated by the company's operations.

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6.

To "Debit" an account means to add to it.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The statement is false because to "debit" an account means to subtract from it, not add to it. Debiting an account involves recording an entry that increases an expense or asset account or decreases a liability or equity account. This is done by entering a debit entry on the left side of the account.

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7.

The act of transferring the information from the General Journal to General Ledger is called what?
- A.
  
  Journalizing
- B.
  
  Posting
- C.
  
  Adjusting Entries
- D.
  
  Income Statement
Correct Answer
B. Posting

Explanation
Posting is the correct answer because it refers to the process of transferring information from the General Journal to the General Ledger. This involves recording the debits and credits for each transaction in the appropriate accounts in the General Ledger, ensuring that the financial records are accurate and up to date. Journalizing refers to the initial recording of transactions in the General Journal, adjusting entries are made to correct errors or update accounts, and the income statement is a financial statement that shows the revenues and expenses of a company over a specific period.

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8.

There are ____ columns in a Journal.

Correct Answer
11

Explanation
A journal typically consists of multiple columns used for recording different types of information or transactions. These columns are used to categorize and organize the data in a systematic manner. Therefore, the correct answer is 11, indicating that there are 11 columns in a journal.

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4
9.

Checks are fun to do and you never get tired of doing them.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
The statement suggests that checks are enjoyable and one never gets tired of doing them. However, this is a subjective opinion and may not be true for everyone. Some people may find checks to be tedious or boring over time. Therefore, the statement is not universally applicable, making the answer "False".

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10.

What is the last thing you do before you finish journalizing?
- A.
  
  Check the totals
- B.
  
  Start Posting
- C.
  
  Double rule
- D.
  
  Feel satisfied
- E.
  
  Owned
Correct Answer(s)
A. Check the totals
C. Double rule

Explanation
Before finishing journalizing, it is important to check the totals to ensure that all debits and credits are properly balanced. This step helps to identify any errors or discrepancies in the journal entries. Additionally, the double rule is another crucial step in accounting where each entry is recorded twice, once on the debit side and once on the credit side, to maintain accuracy and prevent errors.

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11.

How do you write a worksheet?
- A.
  
  Marker
- B.
  
  Pen
- C.
  
  Pencil
- D.
  
  Paint
Correct Answer
C. Pencil

Explanation
The correct answer is pencil because writing a worksheet typically involves using a writing instrument that can be easily erased or corrected. Pencil allows for easy erasing and making changes, which is important when creating a worksheet that may require revisions or adjustments. Markers, pens, and paint are not ideal for writing a worksheet as they do not offer the same level of flexibility and ease of correction.

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Current Version
Oct 08, 2024

Quiz Edited by
ProProfs Editorial Team
May 27, 2014

Quiz Created by
Pabloapx

Basic Accounting Quiz! Trivia Exam

What is the normal balance for an expense account?

A_______ lists each of the accounts in the general ledger with its balance as of a particular date.

When revenues are greater than expenses you have _______.

An Owner's Equity Statement is used to report a business's financial progress.

Financial Statement that shows the Cost of Merchandise Sold.

To "Debit" an account means to add to it.

The act of transferring the information from the General Journal to General Ledger is called what?

There are ____ columns in a Journal.

Checks are fun to do and you never get tired of doing them.

What is the last thing you do before you finish journalizing?

How do you write a worksheet?