Accounting Basics Quiz and Test

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If you have difficulty answering the following questions, learn more about this topic by reading our Accounting Basics (Explanation).

Which financial statement reports the revenues and expenses for a period of time such as a year or a month?

Balance sheet

Income statement

Statement of cash flows

Which financial statement reports the assets, liabilities, and stockholders' (owner's) equity at a specific date?

Balance sheet

Income statement

Statement of cash flows

Under the accrual basis of accounting, revenues are reported in the accounting period when which of the following occurs?

Cash is received

Services or goods have been delivered

Under the accrual basis of accounting, expenses are reported in the accounting period when which of the following occurs?

Cash is paid

An expense matches the revenues or is used up

Revenues minus expenses equals __________.

Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as __________.

Assets are usually reported on the balance sheet at which amount?

Cost

Current market value

Expected selling price

Obligations (amounts owed) are reported on the balance sheet and are referred to as __________.

Liabilities often have the word __________ in their account title.

10.

Unearned Revenues is what type of account?

Asset

Liability

Stockholders' (Owner's) Equity

11.

Accounting entries involve a minimum of how many accounts?

One

Two

Three

12.

The listing of all of the accounts available for use in a company's accounting system is known as the __________.

13.

Assets minus liabilities equals __________.

14.

Which term is associated with "left" or "left side"?

Debit

Credit

15.

Which term is associated with "right" or "right side"?

Debit

Credit

16.

When cash is received, the account Cash will be __________.

debited

credited

17.

When a company pays a bill, the account Cash will be __________.

debited

credited

18.

What will usually cause an asset account to increase?

Debit

Credit

19.

What will usually cause the liability account Accounts Payable to increase?

Debit

Credit

20.

Entries to expenses such as Rent Expense are usually __________.

debits

credits

21.

Entries to revenues accounts such as Service Revenues are usually __________.

debits

credits

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