1) What is an entry? a) A record b) A loan c) An asset d) A liability 2) What does equity represent? a) Assets b) Liabilities c) Owner's interest d) Revenue 3) What is an expense? a) Income b) Cost incurred c) Asset d) Liability 4) What is a financial statement? a) A report b) An invoice c) A ledger d) A journal 5) What is a fiscal year? a) 12 months b) 6 months c) 3 months d) 1 month 6) What is a fixed asset? a) Short-term asset b) Long-term asset c) Liability d) Expense 7) What is a general ledger? a) A journal b) A record book c) An invoice d) A receipt 8) What is income? a) Revenue b) Expense c) Liability d) Asset 9) What is an income statement? a) Balance sheet b) Profit report c) Cash flow d) Ledger 10) What is interest? a) Principal b) Cost of borrowing c) Revenue d) Expense 11) What is inventory? a) Stock b) Liability c) Revenue d) Expense 12) What is an invoice? a) A bill b) A receipt c) A ledger d) A journal 13) What is a journal? a) A record b) An invoice c) A receipt d) A ledger 14) What is a liability? a) An asset b) A debt c) Revenue d) Expense 15) What is a loan? a) Borrowed money b) Revenue c) Expense d) Asset 16) What is net profit? a) Total revenue b) Revenue minus expenses c) Total expenses d) Total assets 17) What is overhead? a) Fixed costs b) Variable costs c) Revenue d) Assets 18) What is payable? a) Receivable b) Debt owed c) Revenue d) Asset 19) What is payroll? a) Employee wages b) Company revenue c) Company expenses d) Company assets 20) What is profit? a) Revenue minus costs b) Total revenue c) Total expenses d) Total assets 21) Which document shows goods or services sold and requests payment? a) Receipt b) Invoice c) Voucher d) Purchase order 22) What is a ledger? a) A book of original entries b) A financial statement c) A book that summarizes all accounts d) An invoice 23) What does "accounts payable" represent? a) Money owed by customers b) Money owed to suppliers c) Company profits d) Company assets 24) Which financial statement shows assets, liabilities, and equity? a) Income statement b) Balance sheet c) Cash flow statement d) Audit report 25) What is depreciation? a) Increase in asset value b) Gradual reduction in asset value over time

Basic Accounting Concepts Quiz

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