ACCOUNTING QUIZ
1. The art of correctly recording business dealing in set of books is called.
A. accounting
B. book keeping
C. record keeping
D. None of the above
2.Which of the following items would not fall under the definition of an asset?
a) Land
b) Machinery
c) Cash
d) Owner’s equity
e) Debtors
3.Overhead Cost Is The Total Of ____.
A: all indirect costs.
B: all direct costs.
C: indirect and direct costs.
D: all specific costs
4.Depreciable amount =
(A) Cost of an asset + Residual value
(B) Cost of an asset – Residual value
(C) Residual value – Cost of an asset
(D) None of these
5.Advance payments are recognized as
(A) receivable
(B) payable
(C) bad debt
(D) none of these
6.Net profit is calculated in which of the following account?
A) Profit and loss account
B) Balance sheet
C) Trial balance
D) Trading account
7.The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as
A) Current assets
B) Fixed assets
C) Intangible assets
D) Investments
8.Book – keeping is-
(a) An art
(b) A science
(c) An art and science both
(d) None of these.
9.The main source(s) of Generally Accepted Accounting Principles (GAAP) is/are:
(A) Company Law
(B) Accounting standards
(C) Both A and B
(D) None of these
10.What are the long-term assets which do not have any physical existence?
A.Intangible Assets
B.Tangible Assets
C.Current Liabilities
D.Current Assets
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