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All textbooks and homework problems cover the same content. All professors have the same expectations about what you should know for each topic. Join the thousands who have learned accounting the easy way.

Statement of Shareholders’ Equity Quiz

Liabilities include resources owned to creditors such as accounts payable, accrued expenses, and notes payable. The balance sheet displays assets, liabilities, and owner’s equity. This multiple choice question (MCQ) test covers the topic of introduction to accounting. You can use these MCQs to help prepare for your exams, interviews, and professional qualifications. Accounts with debit balances such as expenses, withdrawals, and treasury stock decrease equity. The income statement displays all revenues and expenses recorded in a period in a single report.

Create a Free Account and Ask Any Financial Question

For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com. For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online.

Contra asset accounts have a credit balance such as accumulated depreciation. The purpose of financial accounting is to provide useful information for outside investors, creditors, and others. To make this test more realistic, time yourself to make sure that you’re not just getting the correct answers but also answering at the right speed. A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation. The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Factors that should be considered when making decisions include the company’s financial position, Cash Flow, profitability, and business strategy. Accountants use the information to make decisions by analyzing data and trends to make informed decisions to help the company achieve its goals. Why not try one of our accounting quizzes and test your knowledge of bookkeeping and accounting.

Please note that the solution sheet on the next page only shows the solutions and not whether you got each of the questions right or wrong. Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others.

After almost a decade of experience in public accounting, he created MyAccountingCourse.com to help people learn accounting & finance, pass the CPA exam, and start their career. Common accounting decision-making models include the rational decision model, the incremental decision model, and the satisficing decision model. Each of these models has its own set of steps that should be followed when deciding. To begin the quiz, simply quick on the “Start Quiz” button below. If you find any questions difficult, consider reading our introduction to accounting in the explanation section of the website. Double Entry Bookkeeping is here to provide you with free online information to help you learn and understand bookkeeping and introductory accounting.

• The general ledger is a list of accounts for business transactions– not an account format.
• This team of experts helps Finance Strategists maintain the highest level of accuracy and professionalism possible.
• Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise.
• For each item below, write down what is required on a piece of paper.

The problems incorporate the most common things professors know students will not answer correctly. Write out the answers to the problems on paper (like you will do on your test) and then grade your own test to see what you need to work on. Study accounting test answersto all and only the things youneed to know. STUDY the answers to the questions you missed or were unsure about so you do not lose those points on your test. Write out the answers to the problems on paper (like you will do on your test). Practice tests with fully explained step-by-step answers for everything your professor wants you to know.

The practice tests help me see what I would have missed on the test so I can get it right. Each topic listed down the left side of the class homepage will relate the difference between fixed cost and variable cost to a chapter in your textbook. Accounting Play content is for education and information only. Please consult an Attorney or Certified Public Accountant.