Login
Copyright

Fundamentals of Accounting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. What accounting principle requires having the ability to rely on documented information to record financial data?

Question 2 2. What is the formula for the basic accounting equation?

Question 3 3. Which of the following statements best defines 'cash flow?'

Question 4 4. What type of accountant must comply with GASB standards?

Question 5 5. When a criminal case is tried, the stenographer writes down every word of the proceeding. How does the principle of monetary management differ?

Page 2

Question 6 6. Why is accounting important to business?

Question 7 7. What type of accountant deals with the fund system of accounting?

Question 8 8. What does ALOE stand for?

Question 9 9. What type of accountant prepares financial statements for public release and consumption?

Question 10 10. Which of the following is not an accounting activity?

Page 3

Question 11 11. Which one of the activities is a bookkeeping activity?

Question 12 12. What is the accounting formula?

Question 13 13. What term refers to when each transaction has two sides: debit and credit?

Question 14 14. If a company sells $20,000 of their inventory for $30,000 in cash, how does owners' equity change?

Question 15 15. What must balance in a trial balance?

Page 4

Question 16 16. What type of accountant doesn't typically communicate financial information to people or entities outside his organization?

Question 17 17. What accounting principle states that people involved in a transaction should not be personally related?

Question 18 18. Which of the following are 'assets?'

Question 19 19. What are the rules and regulations that must be followed when reporting all financial data?

Question 20 20. Which one of the following documents is not utilized in bookkeeping?

Page 5

Question 21 21. Which of the following is NOT a financial statement?

Question 22 22. What type of accountant is hired by a company to verify the accuracy of the financial records of a company?

Question 23 23. What does the term 'accounting' mean?

Question 24 24. Evan owns his own business running a coffee shop in a downtown area. Which principle must he remember that no matter what he does as a business owner, he must keep his personal dealings completely separate transactions?

Question 25 25. What is the best explanation of a source document in bookkeeping?

Fundamentals of Accounting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

Basics of Accounting  /  Business Courses
Support