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Basic Accounting Practice Test Questions
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Accounting is the practice of recording and reporting on business transactions.

Basic accounting concepts used in business cover revenues, expenses, assets, and liabilities. These elements are tracked and recorded in documents including balance sheets, income statements, and cash flow statements.

Basic Accounting Practice Test Questions
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25 Questions

1. What are Drawings?
2. What is Activity Ratio?
3. What is an Income?
4. Assets - Liabilities = ?
5. What is Bank Overdraft?
6. What are Outstanding Expenses?
7. What does improper utilization of resources and over investment in assets indicate?
8. What are Liabilities?
9. An Asset possessed by the business should be shown in which part of balance sheet?
10. What are the long-term assets which do not have any physical existence?
11. What is Current Liability?
12. Who is an external user of financial statements?
13. Revenue - Expenses =?
14. The main Purpose of Financial Accounting is?
15. The expanded accounting equation is used by which statement?
16. What is the supporting evidence in a business transaction called?
17. What is the common characteristic of all the assets owned by a company?
18. Which person owes an amount to a business organisation for buying goods and services on a credit basis?
19. What type of balance do asset accounts have?
20. When does the capital of a company increases?
21. When are Drawing Debited?
22. Recording financial transaction is part of?
23. Cash Account is credited when?
24. What is a Company?
25. Identifying an economic transaction is which phase of accounting cycle?

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