What Is Accounting? - Purpose, Importance & Relationship to Business


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question 1 of 3

What does the term 'accounting' mean?

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1. What is the formula for the basic accounting equation?

2. Why is accounting important to business?

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About This Quiz & Worksheet

This interactive quiz and printable worksheet will check your comprehension of the purpose of accounting. Assessment items cover financial statements, related terminology and other facts covered in the lesson.

Quiz & Worksheet Goals

These assessments will test you on the following:

  • The meaning of ALOE
  • Why accounting is important to business
  • The different types of financial statements
  • The basic accounting equation formula
  • The definition of accounting

Skills Practiced

Students will practice the following skills:

  • Information Recall- access the knowledge you've gained regarding the various types of financial statements
  • Knowledge Application- use your knowledge to answer questions about accounting
  • Interpreting Information- verify that you can read information regarding the definition and importance of accounting and interpret it accurately

Additional Learning

You can find out more about the purpose of accounting by reviewing the accompanying lesson, What is Accounting? - Purpose, Importance & Relationship to Business. Objectives covered include the following:

  • Know the function of accounting
  • Define accounting cycle
  • Review the different types of financial statements
  • Understand the parts and importance of ALOE