Accounting Terms Quick Quiz

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Advay Jain

India

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Froggy Jumps Accounting Terms Quick QuizVersión en línea Test your terms knowledge por Advay Jain 1 Which describes an asset in accounting? a A firm commitment to increase equity only b An obligation to pay cash in the future c A resource with future economic benefits owned by the entity 2 What is a liability? a A future asset expectation b Owner’s share of profits for the period c An obligation to settle a future outgoing resource 3 What is equity in accounting? a Owner’s claim on the assets after liabilities b Revenues earned during the period c Cash held by the company 4 Revenue recognition principle requires revenue to be recognized when what occurs? a Expenses are paid b Performance obligation is satisfied c Cash is received 5 Which basis of accounting recognizes revenue when earned, not when cash is received? a Cash basis accounting b Accrual basis accounting c Modified cash basis accounting 6 Depreciation is the systematic allocation of cost of what type of asset? a Tangible fixed asset b Intangible asset c Current asset 7 Amortization refers to the allocation of cost of which assets? a Intangible assets b Tangible fixed assets c Current assets 8 In double-entry accounting, an asset increase is recorded as what in a T-account? a A debit b Zero balance c A credit 9 Net income is defined as which of the following? a Gross profit minus operating costs b Revenue minus expenses c Assets minus liabilities 10 Which standards bodies promote global accounting rules like GAAP and IFRS? a FASB only b IASB only c GAAP (US) and IFRS (global)

Froggy Jumps

Accounting Terms Quick QuizVersión en línea

Test your terms knowledge

por Advay Jain

Which describes an asset in accounting?

A firm commitment to increase equity only

An obligation to pay cash in the future

A resource with future economic benefits owned by the entity

What is a liability?

A future asset expectation

Owner’s share of profits for the period

An obligation to settle a future outgoing resource

What is equity in accounting?

Owner’s claim on the assets after liabilities

Revenues earned during the period

Cash held by the company

Revenue recognition principle requires revenue to be recognized when what occurs?

Expenses are paid

Performance obligation is satisfied

Cash is received

Which basis of accounting recognizes revenue when earned, not when cash is received?

Cash basis accounting

Accrual basis accounting

Modified cash basis accounting

Depreciation is the systematic allocation of cost of what type of asset?

Tangible fixed asset

Intangible asset

Current asset

Amortization refers to the allocation of cost of which assets?

Intangible assets

Tangible fixed assets

Current assets

In double-entry accounting, an asset increase is recorded as what in a T-account?

A debit

Zero balance

A credit

Net income is defined as which of the following?

Gross profit minus operating costs

Revenue minus expenses

Assets minus liabilities

Which standards bodies promote global accounting rules like GAAP and IFRS?

FASB only

IASB only

GAAP (US) and IFRS (global)

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Accounting Terms Quick Quiz

Froggy Jumps

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Froggy Jumps

Accounting Terms Quick QuizVersión en línea

por Advay Jain

Which describes an asset in accounting?

What is a liability?

What is equity in accounting?

Revenue recognition principle requires revenue to be recognized when what occurs?

Which basis of accounting recognizes revenue when earned, not when cash is received?

Depreciation is the systematic allocation of cost of what type of asset?

Amortization refers to the allocation of cost of which assets?

In double-entry accounting, an asset increase is recorded as what in a T-account?

Net income is defined as which of the following?

Which standards bodies promote global accounting rules like GAAP and IFRS?

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