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Finance Ledger & Statements Quiz

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Finance Ledger & Statements Quiz

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Test your accounting basics

Created by

Neeraj Markam
Neeraj Markam
India

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Finance Ledger & Statements Quiz
 

Finance Ledger & Statements QuizOnline version

Test your accounting basics

by Neeraj Markam
1

Which journal entry effects both sides of the accounting equation (debit and credit) in double-entry bookkeeping?

2

What is the primary purpose of a Trial Balance?

3

Which financial statement shows a company’s financial position at a specific date?

4

Which account type increases with a debit in a balance sheet?

5

In a journal entry, where does a revenue increase appear in a T-account?

6

What does an income statement primarily measure?

7

Which post-closing trial balance ensures all temporary accounts are reset for the new period?

8

Which item is not part of the basic accounting equation?

9

Which document shows how net income is added to equity?

10

Which ledger is used to summarize all postings by account?

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Double-entry records each transaction with at least one debit and one credit, keeping the equation balanced.

A trial balance checks that total debits equal total credits before financial statements.

The balance sheet presents assets, liabilities, and equity at a date.

Assets typically increase on the debit side.

Revenue accounts are increased by credits.

The income statement summarizes revenues and expenses to show profit or loss.

Post-closing TB verifies permanent accounts balance after closing entries.

The equation is Assets = Liabilities + Equity; cash flow timing doesn’t create separate assets.

Statement of Changes in Equity tracks owner’s equity changes from profits, withdrawals, etc.

The General Ledger aggregates all account balances for financial reporting.

 
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