FREE Accounting Basics Question and Answers

Question 1

What amount does an asset typically appear on a balance sheet as?

Accepted Answer

Cost

Answer

Expected Selling Price

Answer

Current Market Value

Question 2

When which of the following occurs, expenses are reported in the accounting period under the accrual method of accounting.

Accepted Answer

An Expense Matches The Revenues Or Is Up

Answer

Cash Is Paid

Answer

Cash Is Received

Question 3

What often results in an asset account growing?

Accepted Answer

Debit

Answer

Credit

Answer

None of the above

Question 4

Which financial statement summarizes the income and outgoings for a given time frame, such as a month or year?

Accepted Answer

Income Statement

Answer

Statement Of Cash Flows

Answer

Balance Sheet

Question 5

What kind of account is Unearned Revenues?

Accepted Answer

Liability

Answer

Stockholders' (Owner's) Equity

Answer

Asset

Question 6

Which financial statement contains the shareholders' (owners') equity, liabilities, and assets as of a particular date?

Accepted Answer

Balance Sheet

Answer

Income Statement

Answer

Statement Of Cash Flows

Question 7

How many accounts are required as a minimum for accounting entries?

Accepted Answer

2

Answer

1

Answer

3