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Quiz - The Accounting Process

The document is a quiz on the accounting process, covering key concepts such as the accounting cycle, journal entries, and financial statements. It includes multiple-choice questions with answers related to the steps in accounting, types of accounts, and the purpose of trial balances. The quiz emphasizes understanding the fundamental principles of accounting and the preparation of financial statements.

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ampaterjupiel
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14 views2 pages

Quiz - The Accounting Process

The document is a quiz on the accounting process, covering key concepts such as the accounting cycle, journal entries, and financial statements. It includes multiple-choice questions with answers related to the steps in accounting, types of accounts, and the purpose of trial balances. The quiz emphasizes understanding the fundamental principles of accounting and the preparation of financial statements.

Uploaded by

ampaterjupiel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Quiz: The Accounting Process

1.​ Which of the following is the first step in the accounting cycle?​
a) Journalizing​
b) Analyzing transactions​
c) Posting to ledger​
d) Preparing trial balance​
Answer: b​

2.​ The journal is also known as:​


a) Ledger of accounts​
b) Statement of financial position​
c) Book of original entry​
d) Adjusted trial balance​
Answer: c​

3.​ Which special journal is used to record all cash payments?​


a) Cash receipts journal​
b) Sales journal​
c) Purchase journal​
d) Cash disbursement journal​
Answer: d​

4.​ Accounts that are not closed at the end of the accounting period are called:​
a) Nominal accounts​
b) Real accounts​
c) Mixed accounts​
d) Clearing accounts​
Answer: b​

5.​ The process of transferring entries from the journal to the ledger is known as:​
a) Posting​
b) Adjusting​
c) Closing​
d) Reconciling​
Answer: a​

6.​ The main purpose of preparing an unadjusted trial balance is to:​


a) Prepare financial statements​
b) Test whether total debits equal total credits​
c) Record adjusting entries​
d) Detect all fraud and errors​
Answer: b​

7.​ Adjusting entries are prepared primarily to implement which accounting concept?​
a) Conservatism​
b) Entity concept​
c) Accrual and matching principles​
d) Cost principle​
Answer: c​

8.​ Which financial statement shows the results of operations for a period?​
a) Statement of financial position​
b) Statement of changes in equity​
c) Income statement​
d) Statement of cash flows​
Answer: c​

9.​ Closing entries are prepared to:​


a) Transfer balances of temporary accounts to capital/retained earnings​
b) Correct posting errors in the ledger​
c) Record external transactions​
d) Balance the subsidiary ledger​
Answer: a​

10.​Reversing entries are:​


a) Mandatory and always prepared​
b) Optional entries to simplify recording in the new period​
c) Used only for permanent accounts​
d) Made after preparing the trial balance​
Answer: b​

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