Which financial statement provides an overview of a companys financial position at a specific point in time?
Correct!
Wrong :(
Answer - c) Balance sheet
3
Which of the following is considered a long-term liability on a companys balance sheet?
Correct!
Wrong :(
Answer - c) Long-term loans
4
Retained earnings are a part of which financial statement?
Correct!
Wrong :(
Answer - d) Statement of changes in equity
5
In double-entry bookkeeping, which account represents the owners equity in a company?
Correct!
Wrong :(
Answer - c) Common stock
6
What is the purpose of the income statement?
Correct!
Wrong :(
Answer - c) To report the revenue, expenses, and profit or loss over a period
7
Which accounting principle states that assets and liabilities should be recorded at their original acquisition cost?
Correct!
Wrong :(
Answer - c) Historical cost principle
8
The term depreciation is most closely associated with which type of asset?
Correct!
Wrong :(
Answer - c) Fixed assets
9
Which financial statement provides information on a companys cash inflows and outflows from operating, investing, and financing activities?
Correct!
Wrong :(
Answer - b) Cash flow statement
10
Which accounting standard is widely used for the preparation of financial statements in India?
Correct!
Wrong :(
Answer - c) AS (Accounting Standards)
11
What is the term for the process of allocating the cost of an intangible asset over its useful life?
Correct!
Wrong :(
Answer - b) Amortisation
12
Which of the following is an example of a current liability on a balance sheet?
Correct!
Wrong :(
Answer - c) Accounts payable
13
Which of the following financial statements covers a specific period of time?
Correct!
Wrong :(
Answer - c) Income statement
14
Which financial statement represents the equation: Assets = Liabilities + Equity?
Correct!
Wrong :(
Answer - c) Balance sheet
15
What is the purpose of the statement of changes in equity?
Correct!
Wrong :(
Answer - c) To show how equity items change over time
16
In a balance sheet, which of the following is considered a non-current asset?
Correct!
Wrong :(
Answer - c) Buildings
17
Which accounting principle requires that accounting information should be disclosed to the extent necessary to understand the financial statements?
Correct!
Wrong :(
Answer - a) Materiality principle
18
What is the main purpose of the going concern concept in accounting?
Correct!
Wrong :(
Answer - b) To ensure that companies remain in business for the foreseeable future
19
What is the term for the process of reducing the value of an asset due to obsolescence, wear and tear, or other factors?
Correct!
Wrong :(
Answer - d) Depreciation
20
Which of the following is an example of an intangible asset?
Correct!
Wrong :(
Answer - c) Patents
21
The equation Assets = Liabilities + Equity is based on which accounting principle?
Correct!
Wrong :(
Answer - c) Dual aspect concept
22
Which financial statement provides a summary of a companys cash inflows and outflows for a specific period?
Correct!
Wrong :(
Answer - b) Cash flow statement
23
What is the primary purpose of the accrual basis of accounting?
Correct!
Wrong :(
Answer - a) To record transactions as they occur
24
Which accounting standard is followed in the preparation of financial statements for publicly traded companies in many countries?
Correct!
Wrong :(
Answer - b) IFRS (International Financial Reporting Standards)
25
What is the term for the process of allocating the cost of a tangible asset over its useful life?
Correct!
Wrong :(
Answer - b) Depreciation
26
The principle of conservatism in accounting suggests that when there are multiple acceptable accounting methods, which one should be chosen?
Correct!
Wrong :(
Answer - c) The method that is most conservative or cautious
27
Which of the following is an example of a non-current liability on a balance sheet?
Correct!
Wrong :(
Answer - c) Long-term debt
28
What is the primary purpose of the cash flow statement?
Correct!
Wrong :(
Answer - c) To report cash inflows and outflows from operating, investing, and financing activities
29
Which financial statement provides information on changes in equity items such as share capital and retained earnings?
Correct!
Wrong :(
Answer - d) Statement of changes in equity
30
What is the term for the process of reducing the value of an intangible asset over its useful life?
Correct!
Wrong :(
Answer - a) Amortisation
31
Which financial statement is also known as the profit and loss statement?
Correct!
Wrong :(
Answer - a) Income statement
32
In the balance sheet equation, Assets = Liabilities + Equity, what do assets represent?
Correct!
Wrong :(
Answer - a) What the company owns
33
The term impairment in accounting refers to the reduction in the value of which type of assets?
Correct!
Wrong :(
Answer - c) Intangible assets
34
Which accounting principle requires recording revenues when they are earned and expenses when they are incurred, regardless of when cash is exchanged?
Correct!
Wrong :(
Answer - d) Revenue recognition principle
35
Which financial statement provides a snapshot of a companys financial position at a specific point in time?
Correct!
Wrong :(
Answer - c) Balance sheet
36
What is the primary purpose of the income statement?
Correct!
Wrong :(
Answer - d) To report the revenue, expenses, and profit or loss over a period
37
Which accounting principle suggests that financial statements should be prepared with the assumption that a business will continue to operate indefinitely?
Correct!
Wrong :(
Answer - b) Going concern principle
38
What is the term for the process of recognizing revenue when it is earned and realisable, regardless of when cash is received?
Correct!
Wrong :(
Answer - a) Accrual accounting
39
Which financial statement shows the changes in the equity of a company during a specific period?
Correct!
Wrong :(
Answer - d) Statement of changes in equity
40
What is the primary purpose of the balance sheet?
Correct!
Wrong :(
Answer - b) To show the companys financial position at a specific point in time
41
Which of the following is a non-current liability?
Correct!
Wrong :(
Answer - c) Long-term loans
42
Which accounting standard is commonly followed by companies in the United States?
Correct!
Wrong :(
Answer - d) US GAAP (Generally Accepted Accounting Principles)
43
What is the term for the process of allocating the cost of inventory to the cost of goods sold when the inventory is sold?
Correct!
Wrong :(
Answer - d) Cost of goods sold
44
Which financial statement provides information about a companys operating, investing, and financing activities?
Correct!
Wrong :(
Answer - b) Cash flow statement
45
Which of the following represents the owners claim on the assets of the company?
Correct!
Wrong :(
Answer - c) Equity
46
What does the dual aspect concept in accounting mean?
Correct!
Wrong :(
Answer - a) Every financial transaction has a dual effect on the accounting equation.
47
Which financial statement reflects the companys financial performance over a specific period of time?
Correct!
Wrong :(
Answer - c) Income statement
48
What is the primary purpose of the statement of changes in equity?
Correct!
Wrong :(
Answer - c) To summarise changes in equity items over a period
49
Which financial statement provides details about the companys cash inflows and outflows during a specific period?
Correct!
Wrong :(
Answer - b) Cash flow statement
50
What is the primary purpose of the balance sheet?
Correct!
Wrong :(
Answer - c) To show the companys financial position at a specific point in time
Final Score:
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