Accounting Basics Quiz

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Fundamental accounting concepts

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Brithany Fiorella Perez Cajape

Ecuador

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Accounting Basics Quiz


Accounting Basics QuizVersión en línea Fundamental accounting concepts por Brithany Fiorella Perez Cajape 1 What are the concept and steps of accounting? a Classification: Organize documents; Presentation: Show results; Interpretation: Draw conclusions from the results. b Classification: Organize documents; Registration: Post in the ledger; Presentation: Show the results; Interpretation: Analyze the data c Registration: Record in the accounting books; Presentation: Show the results; Interpretation: Explain the data. d Classification: Organize the documents; Registration: Record in the accounting books; Presentation: Show the results; Interpretation: Draw conclusions from the results. 2 What is the objective of accounting? a Obtain and provide timely information to the business administrators. b To prepare annual tax reports only. c To assist only with budgeting and forecasting. d To maximize profits for the owners. e To replace the need for financial statements. 3 What is the concept of a accountant (contable)? a An employee who manages only payroll. b A person who audits exclusively external statements. c A temporary worker who handles cash only. d The person who keeps records in a company without legal authority. e The person legally authorized to sign and carry the accounting of a company under their responsibility. 4 Who is obligated to keep accounting and who is not, according to the text? a Not obligated: everyone; Obligated: only large corporations. b Not obligated: individuals with incomes > $100,000; Obligated: individuals with capital ≤ $60,000. c Not obligated: individuals with incomes ≤ $100,000 and expenses ≤ $80,000. Obligated: individuals with incomes > $100,000 and capital > $60,000. d Not obligated: individuals with incomes ≤ $50,000 and expenses ≤ $40,000; Obligated: everyone else. 5 What is the concept of legal entities (personas jurídicas)? a They are international corporations only. b They are non-profit organizations only. c They are the societies and include all institutions of the public sector. d They are individuals running businesses. e They are only private companies. 6 Give examples of types of accounting and what they do. a Commercial accounting: only records purchases; Industrial accounting: only tracks salaries; Governmental accounting: only audits grants; Banking accounting: only tallies cash withdrawals. b Commercial accounting: records buying and selling activities to obtain profit (Examples: Pycca, Mi comisariato). Industrial accounting: controls costs and movements of transforming raw material into finished products (Example: Pronaca). Governmental accounting: administers and controls funds and res 7 What is the period of accounting (periodo contable)? a The date when the annual report is published. b The time span during which accounting operations are carried out, from initial balance to final balance. c The period between tax filings only. d The month with the highest revenue. e The time between audits. 8 What is a transaction (la transaccion) and its key features? a The transfer of assets within the same company only, with no value change. b A transaction that does not affect the company’s balance. c The exchange of goods or services between two people or companies for money, to meet needs by a change of value. Features: the transaction is conducted by the company, for the benefit of the company, and it has value. d A non-monetary gift between individuals. e An internal reclassification of accounts with no external exchange. 9 What elements intervene in a transaction? a Year, Customer, Vendor, Receipt, Item, Cost, Currency. b Date, Buyer, Seller, Sales receipt, Good or service, Monetary value, Form of payment. c Time, Purchaser, Vendor, Purchase order, Item, Value, Payment terms. d Date, Buyer, Seller, Invoice, Goods, Amount, Method of delivery.

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Accounting Basics Quiz

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Accounting Basics QuizVersión en línea

por Brithany Fiorella Perez Cajape

What are the concept and steps of accounting?

What is the objective of accounting?

What is the concept of a accountant (contable)?

Who is obligated to keep accounting and who is not, according to the text?

What is the concept of legal entities (personas jurídicas)?

Give examples of types of accounting and what they do.

What is the period of accounting (periodo contable)?

What is a transaction (la transaccion) and its key features?

What elements intervene in a transaction?