by Cacilia Vanwinkle
Step into the intricate world of accounting and finance, where numbers tell the story of businesses and economies. This quiz is designed to challenge your grasp on the essentials of financial statements, accounting principles, and financial strategies. Ready to put your knowledge to the test? Let’s get started!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Accounting or Finance Quiz Questions Overview
1. What is the primary purpose of financial accounting?
To prepare internal reports for management
To provide financial information to external users
To manage the company’s cash flow
To audit financial statements
2. Which of the following is considered a current asset?
Goodwill
Land
Accounts Receivable
Equipment
3. What does the acronym GAAP stand for?
Generally Accepted Accounting Principles
General Accounting and Auditing Practices
Governmental Accounting and Auditing Procedures
Global Accounting and Auditing Policies
4. Which financial statement shows a company’s financial position at a specific point in time?
Income Statement
Statement of Cash Flows
Balance Sheet
Statement of Retained Earnings
5. What is the formula for calculating net income?
Revenue – Expenses
Assets – Liabilities
Revenue + Expenses
Assets + Liabilities
6. Which of the following is an example of a liability?
Cash
Inventory
Accounts Payable
Retained Earnings
7. What is the main purpose of managerial accounting?
To provide information to external users
To prepare tax returns
To assist management in decision-making
To audit financial statements
8. Which financial statement provides information about a company’s cash receipts and cash payments during an accounting period?
Income Statement
Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
9. What does ROI stand for in finance?
Return on Investment
Rate of Interest
Revenue on Income
Return on Inventory
10. Which accounting principle requires that expenses be matched with revenues?
Revenue Recognition Principle
Matching Principle
Cost Principle
Full Disclosure Principle
11. What is the primary focus of corporate finance?
Managing individual investments
Preparing tax returns
Maximizing shareholder value
Auditing financial statements
12. Which of the following is a non-cash expense?
Interest Expense
Depreciation
Cost of Goods Sold
Wages
13. What is the main objective of financial management?
To prepare financial statements
To maximize the wealth of shareholders
To manage day-to-day operations
To ensure compliance with laws
14. Which ratio measures a company’s ability to meet its short-term obligations with its most liquid assets?
Debt-to-Equity Ratio
Current Ratio
Quick Ratio
Return on Assets
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
