Financial Accounting Quiz and Test

For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions press or click on the blank space provided.

If you have difficulty answering the following questions, learn more about this topic by reading our Financial Accounting (Explanation).

1.
Financial accounting is focused on the __________ financial statements of a company.

External
Right!

Internal
Wrong.
2.
Financial statements report the fair market value of a company.

True
Wrong.

False
Right!
3. Large corporations must follow the
__________
accrual
basis of accounting.
4. Corporations whose stock is publicly traded must have their financial statements
__________
audited
by independent certified public accountants.
5.
The U.S. government agency with authority over the financial reporting requirements of publicly traded corporations is the __________.

AICPA
Wrong.

The AICPA is not a government agency.

FASB
Wrong.

The FASB is not a government agency.

IRS
Wrong.

This government agency is associated with income tax reporting.

SEC
Right!
6.
The non-government organization that researches and develops new accounting standards is the __________.

AICPA
Wrong.

FASB
Right!

IRS
Wrong.

This is a government agency.

SEC
Wrong.

This is a government agency.
7. The acronym for the common rules and standards that companies must follow when preparing its external financial statements is
__________
GAAP
.
8. SEC is the acronym for
__________
Securities and Exchange Commission
.
9. FASB is the acronym for
__________
Financial Accounting Standards Board
.
10. GAAP is the acronym for
__________
generally accepted accounting principles
.
11.
__________
Double
entry bookkeeping will result in at least two accounts being involved in every transaction.
12. Every transaction will have one account being credited and one account being
__________
debited
.
13. The accounting equation is Assets =
__________
Liabilities
+ Stockholders' (or Owner's) Equity.
14. Matching, cost, and full disclosure are examples of the fundamental or basic accounting
__________
principles
.
15. The profitability of a company for a specified period of time is reported on the
__________
income
statement.
16. The main components or elements of the income statement are
__________
revenues
, expenses, gains, and losses.
17. Prepaid insurance is reported as an
__________
asset
on a company's balance sheet.
18. The word "
__________
payable
" is often in the title of liability accounts.
19. The statement of cash flows explains the changes in cash and cash
__________
equivalents
during the specified time interval.
20. The first section of the statement of cash flows is the
__________
operating
activities.

Want more practice questions?
Receive instant access to our graded Quick Tests (more than 1,800 unique test questions) when you join AccountingCoach PRO.

Mark the Practice Quiz as Complete

Join PRO to Track Your Progress
One-time fee, lifetime access