Quiz Details
QZ-20251027-03166
Topics:
financial accounting
Difficulty:
Level 3 - Medium
Questions:
5
Generated:
October 27, 2025 at 06:04 AM
Generated by:
Guest User
Instructions: Select an answer for each question and click "Check Answer" to see if you're correct. Then view the explanation to learn more!
1 What is the primary purpose of financial accounting?
Correct Answer:
A
Explanation: The primary purpose of financial accounting is to provide financial information to external users such as investors, creditors, and regulators.
Explanation: The primary purpose of financial accounting is to provide financial information to external users such as investors, creditors, and regulators.
2 Which financial statement shows a company's revenues and expenses over a specific period?
Correct Answer:
C
Explanation: The Income Statement reflects a company's revenues and expenses over a specific period, ultimately showing the net profit or loss.
Explanation: The Income Statement reflects a company's revenues and expenses over a specific period, ultimately showing the net profit or loss.
3 What does GAAP stand for?
Correct Answer:
A
Explanation: GAAP stands for Generally Accepted Accounting Principles, which are the standard framework of guidelines for financial accounting.
Explanation: GAAP stands for Generally Accepted Accounting Principles, which are the standard framework of guidelines for financial accounting.
4 In financial accounting, what is the accounting equation?
Correct Answer:
A
Explanation: The accounting equation states that Assets = Liabilities + Equity, which is fundamental to the double-entry bookkeeping system.
Explanation: The accounting equation states that Assets = Liabilities + Equity, which is fundamental to the double-entry bookkeeping system.
5 What is the purpose of an audit in financial accounting?
Correct Answer:
B
Explanation: The purpose of an audit is to verify the accuracy of financial records, ensuring that they are presented fairly and in accordance with applicable standards.
Explanation: The purpose of an audit is to verify the accuracy of financial records, ensuring that they are presented fairly and in accordance with applicable standards.