Froggy Jumps Accounting Quiz ChallengeOnline version Test your knowledge of accounting concepts and principles with this fun quiz! by Ju Dini 1 What is the primary purpose of accounting? a To manage employee payroll. b To record and report financial transactions. c To create marketing strategies. 2 What does GAAP stand for? a General Analysis and Accounting Procedures. b Global Accounting and Audit Practices. c Generally Accepted Accounting Principles. 3 Which financial statement shows a company's profitability? a Balance Sheet. b Income Statement. c Cash Flow Statement. 4 What is double-entry bookkeeping? a A method for tracking cash only. b A single-entry recording system. c A system where every transaction affects two accounts. 5 What is an asset? a An expense incurred by a business. b A resource owned by a company. c A company's debt. 6 What does the term 'liability' refer to? a A company's assets. b A company's revenue. c A company's financial obligations. 7 What is depreciation? a The total cost of an asset. b The increase in asset value. c The allocation of an asset's cost over its useful life. 8 Which accounting method recognizes revenue when earned? a Deferred accounting. b Cash accounting. c Accrual accounting. 9 What is the purpose of an audit? a To prepare tax returns. b To verify the accuracy of financial statements. c To manage company assets. 10 What is a journal in accounting? a A record of all transactions in chronological order. b A list of company assets. c A summary of financial statements.
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