Course Outline
Join PRO

Financial Accounting (Practice Quiz)

Download PDF

Author:
Harold Averkamp, CPA, MBA

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 pertains to __________ operating activities.
Access 1,800+ Premium Test Questions

Access 1,800+ Premium Test Questions

Receive instant access to our entire collection of premium materials, including our 1,800+ test questions.

View All PRO Features
Mark the Quiz as Complete

Financial Accounting Outline

Progress
0%
Join PRO to Track Progress

Advance Your Accounting and Bookkeeping Career

Must Watch image
  • Perform better at your job
  • Get hired for a new position
  • Understand your small business
  • Pass your accounting class
Watch the Video
Certificates of Achievement

Earn Our Certificates of Achievement

Certificates of Achievement
  • Debits and Credits
  • Adjusting Entries
  • Financial Statements
  • Balance Sheet
  • Income Statement
  • Cash Flow Statement
  • Working Capital and Liquidity
  • Financial Ratios
  • Bank Reconciliation
  • Accounts Receivable and Bad Debts Expense
  • Inventory and Cost of Goods Sold
  • Depreciation
  • Payroll Accounting
View PRO Plus Features

Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials

Read all 2,866 reviews

Features

PRO

PRO Plus

Features
Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Word Scrambles
Crosswords
Bookkeeping Video Training
Financial Statements Video Training
Flashcards
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Bookkeeping Study Guide
Managerial Study Guide
Business Forms
All PDF Files
Progress Tracking
Earn Badges and Points
Certificate - Debits and Credits
Certificate - Adjusting Entries
Certificate - Financial Statements
Certificate - Balance Sheet
Certificate - Income Statement
Certificate - Cash Flow Statement
Certificate - Working Capital
Certificate - Financial Ratios
Certificate - Bank Reconciliation
Certificate - Accounts Receivable and Bad Debts Expense
Certificate - Inventory and Cost of Goods Sold
Certificate - Depreciation
Certificate - Payroll Accounting
Motivational Badges
Motivational Points
Medal Rankings
Activity Streaks
Custom Public Profile Page of Achievements
Join PRO
Join PRO Plus
Join PRO Plus

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Read 2,866 Testimonials
Accounting Careers Certificates of Achievement
Take the Tour Join Pro Upgrade to Pro Plus