Introduction to financial accounting

Multiple choice questions (MCQs) quiz

1. The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

2. The branch of accounting that generates reports and information for the use of internal management is known as:

3. Which one of the following is not an external user of accounting information?

4. Which of the following is correct?

5. Who is known as the father of accounting?

6. Which of the following is correct about double entry system of accounting?

7. The format of account that tells the balance after each entry is known as:

8. A T-account format is used in situations where account balance is required:

9. In a T-account, the balance is equal to:

10. A list of account names used in the general ledger of an organization is known as:

11. The type and number of accounts to be listed in a chart of accounts depends on:

12. Which one of the following is not a real account?

13. Which one of the following is not a nominal account?

14. Which one of the following is a personal account?

15. Which one of the following is valuation (or contra) account?

16. Which one of the following is a withdrawal account?

17. Which one of the following is a characteristic of a valid business transaction?

18. Which one of the following is an internal transaction?

19. Which of the following normally has a debit balance?

20. When an asset increases, its account is:

21. When a liability increases, its account is:

22. An account used to determine the carrying or net value of another account is known as:

23. In accounting equation (Assets = Liabilities + Owner’s equity), the liabilities means the claim of external creditors against:

24. Accumulated depreciation account and allowance for doubtful accounts account are two examples of contra asset account. The normal balance of these two accounts would be:

25. According to modern approach, the accounts are classified as: