MCQ Quiz
Test Your Knowledge
Theory questions on accounting principles, IAS/IFRS standards, and financial statement classification.
592Questions
3Difficulties
Bookkeeping Basics
129 questions · 11 topics
Debits and Credits
29
- Debit or Credit: Which Side Increases an Asset Account?easy
- Normal Balance of Accounts Payable: Debit or Credit?easy
- What Do Debit and Credit Mean in Accounting?easy
- Debit or Credit: Recording Revenue Earnedeasy
- Normal Balance of the Owner's Drawings Accounteasy
Accounting Equation
20
- Accounting Equation Example: Buying Inventory on Crediteasy
- Accounting Equation Example: Paying a Suppliereasy
- Account Type Quiz: Is Accounts Receivable an Asset or a Liability?easy
- Assets, Liabilities or Equity: Classifying Prepaid Insuranceeasy
- Expanded Accounting Equation: The Formulaeasy
Source Documents
6
- Source Documents in Accounting: What Is a Purchase Order?easy
- Source Documents: What Is a Credit Note Used For?easy
- Source Documents: Which Document Records Cash Paid into the Bank?easy
- Source Documents: Debit Note vs Credit Notemedium
- Source Documents: Statement of Account from a Suppliermedium
Books of Prime Entry
8
- Books of Prime Entry: Where Are Credit Sales Recorded First?easy
- Books of Prime Entry: What Is the General Journal Used For?easy
- Books of Prime Entry: The Sales Returns Journalmedium
- Which of These Is NOT a Book of Prime Entry?medium
- Special Journals: Posting the Sales Journal Totalmedium
Cash Book
7
- Cash Book Quiz: Is It a Receipt or a Payment?easy
- What Is a Cash Book in Accounting?easy
- Three-Column Cash Book: What Are the Three Columns?medium
- Contra Entry in the Cash Book: Cash Paid into the Bankmedium
- Cash Book: Discount Allowed vs Discount Receivedmedium
Journal and Ledger
9
- Journal vs Ledger: What Is the Difference?easy
- What Is Posting in Accounting?easy
- Journal Entry Format: What Is the Narration?easy
- Posting to the Ledger: Calculating the Accounts Receivable Balancemedium
- Sales Ledger and Purchases Ledger: What Do They Contain?medium
Accounting Cycle and Trial Balance
15
- Current vs Non-Current Assetseasy
- Trial Balance — Purposeeasy
- Creditors Classificationeasy
- Normal Balances — Unearned Revenueeasy
- The Accounting Equation — Solving for Equityeasy
Correction of Errors
12
- Suspense Account: When Is It Opened?medium
- Types of Accounting Errors: Error of Principlemedium
- Types of Accounting Errors: Compensating Errorsmedium
- Correcting an Error Through the Suspense Accounthard
- Effect of Correcting Errors on Draft Net Profithard
Accounting Principles
16
- Accounting Principles: The Materiality Concepteasy
- Accounting Principles: Prudence (Conservatism)easy
- Accounting Principles: The Money Measurement Concepteasy
- Accounting Principles: The Time Period Assumptioneasy
- Accounting Principles: Substance Over Formmedium
Adjustments and Year-End
28 questions · 2 topics
Adjusting Entries
17
- Supplies Adjusting Entryeasy
- Accrued Revenue — The Adjusting Entryeasy
- What Are Adjusting Entries in Accounting?easy
- Types of Adjusting Entries: Which One Is Not an Adjustment?easy
- Adjusting Entry for Accrued Wageseasy
Accruals and Prepayments
11
- Accrual vs Prepayment: Which Is Which?easy
- Accrued Income on the Balance Sheeteasy
- Cash Basis of Accounting: When Is an Expense Recorded?easy
- Accrued Revenue vs Unearned Revenueeasy
- Prepaid Rent Adjusting Entry: Calculating the Rent Expensemedium
Financial Statements
82 questions · 7 topics
Financial Statements
11
- Balance Sheet or Income Statement: Where Does Accounts Payable Go?easy
- Balance Sheet or Income Statement: Which Item Is on the Income Statement?easy
- Order in Which the Financial Statements Are Preparedeasy
- Users of Financial Statements: Who Is an External User?easy
- Balance Sheet or Income Statement: Where Do the Owner's Drawings Appear?medium
Income Statement
10
- Income Statement Quiz: The Formula for Net Incomeeasy
- Income Statement: What Comes After Operating Profit?medium
- Cost of Goods Sold with Purchases Returns and Carriage Inwardsmedium
- Income Statement: Which Item Is NOT an Expense?medium
- Discount Received and Discount Allowed in the Income Statementmedium
Trading and Profit and Loss Account
8
- Trading Account: What Does It Calculate?easy
- Profit and Loss Account: What Does It Calculate?easy
- Trading and Profit and Loss Account: Where Does Carriage Outwards Go?medium
- Trading Account: Calculating Gross Profit with Sales Returnsmedium
- Trading and Profit and Loss Account: Which Item Goes in the Trading Section?medium
Balance Sheet
9
- Current vs Non-Current Classificationeasy
- US GAAP: Balance Sheet Orderingeasy
- IAS 1 — Components of Financial Statementsmedium
- Going Concernmedium
- Computing Working Capitalmedium
Capital and Revenue Expenditure
6
- Capital or Revenue Expenditure: Repairing a Delivery Vaneasy
- What Is Revenue Expenditure?easy
- Capital or Revenue Expenditure: Extending a Building vs Repainting Itmedium
- Effect of Treating Capital Expenditure as Revenue Expendituremedium
- Capital Receipt or Revenue Receipt?medium
Cash Flow Statement
20
- Statement of Cash Flows: The Three Activitieseasy
- Cash Flow Statement: What Is Its Purpose?easy
- Cash Flow Statement: Reconciling Opening and Closing Casheasy
- Why Is Depreciation Added Back in the Cash Flow Statement?medium
- Profit vs Cash: Why a Profitable Business Can Run Out of Cashmedium
Cash Flow: Indirect and Direct Method
18
- What Counts as a Cash Equivalent?easy
- Direct Method — What the Operating Section Showseasy
- US GAAP: Where Dividends Paid Appear in the Cash Flow Statementeasy
- IAS 7 — Cash Flow Classificationmedium
- IAS 7 — Indirect Methodmedium
Cash, Receivables and Payables
50 questions · 6 topics
Bank Reconciliation
12
- Bank Reconciliation — Outstanding Checkseasy
- Why Your Bank "Credits" Your Depositeasy
- Bank Reconciliation: Why Is It Prepared?easy
- Bank Reconciliation: What Is a Deposit in Transit?easy
- Bank Reconciliation — Adjusted Book Balancemedium
Accounts Receivable and Bad Debts
16
- Writing Off a Bad Debt — Allowance Methodeasy
- Computing Interest on a Noteeasy
- Accounts Receivable: Trade Discount vs Cash Discounteasy
- Aging Method — Computing the Adjustmentmedium
- Percentage-of-Credit-Sales Method — Existing Allowancemedium
Accounts Payable and Notes Payable
8
- Accounts Payable: What Does It Represent?easy
- Accrued Interest on a Note Payablemedium
- A Non-Interest-Bearing Note Payablemedium
- Accounts Payable: Recording a Purchase Returnmedium
- Supplier Statement Reconciliation: Finding the Correct Balance Owedmedium
Payroll Accounting
7
- Payroll Accounting: Gross Pay vs Net Payeasy
- Payroll: Computing Gross Pay with Overtimemedium
- Payroll: Computing Net Pay from Gross Pay and Deductionsmedium
- Payroll Journal Entry: Recording Salaries and Tax Withheldmedium
- Payroll: Are Amounts Withheld from Employees an Expense of the Employer?medium
Inventory
46 questions · 3 topics
Inventory Valuation
27
- FIFO — Basic Concepteasy
- US GAAP: Reversing an Inventory Write-Downeasy
- FIFO Ending Inventorymedium
- Weighted-Average Costmedium
- Lower of Cost or Net Realizable Valuemedium
Periodic and Perpetual Inventory
12
- FIFO in a Period of Rising Priceseasy
- What a Perpetual System Trackseasy
- US GAAP: LIFO as an Inventory Cost Formulaeasy
- Periodic vs Perpetual Inventory: When Is Cost of Goods Sold Found?easy
- Periodic Inventory System: Which Account Records Purchases of Goods?easy
Non-Current Assets
77 questions · 4 topics
Depreciation
36
- Depreciation — Purposeeasy
- IAS 16 — Depreciation Methodseasy
- Capital vs Revenue Expenditureeasy
- Depreciation That Varies with Usageeasy
- Residual Value in Depreciationeasy
Property, Plant and Equipment
21
- Costs Capitalized to PPEeasy
- Recognition: What Qualifies as PPEeasy
- Recognition Criteria: Probable Benefit & Reliable Costeasy
- Recognition: Component Replacementeasy
- Presentation: Where PPE Appearseasy
Liabilities and Equity
42 questions · 5 topics
Bonds and Long-Term Debt
6
- Bond Issued at a Discountmedium
- Amortizing a Bond Premiummedium
- US GAAP: Amortizing a Bond Discountmedium
- Bonds Issued at a Discount — Effective Interesthard
- Effective Interest Methodhard
Provisions and Contingencies
7
- IAS 37 — When Is a Provision Recognized?medium
- IAS 37 — Contingent Assetsmedium
- Warranty Provision — Year-End Balancemedium
- A Possible (Not Probable) Contingencymedium
- US GAAP: A Loss Contingency Range With No Best Estimatemedium
Leases
8
- A Lessee's Basic Recognition Under IFRS 16easy
- US GAAP: A Lessee's Two Lease Typeseasy
- US GAAP: Operating Lease Expense Patternmedium
- IFRS 16 — Lessee's Initial Lease Liabilityhard
- IFRS 16 — Recognition Exemptionshard
Partnerships and Other Entities
14 questions · 3 topics
Partnership Accounts
7
- Partnership Accounts: The Appropriation Accounteasy
- Partnership: How Is Profit Shared When There Is No Agreement?easy
- Partnership: Is a Partner's Salary an Expense?medium
- Partnership: Capital Account vs Current Accountmedium
- Partnership: Interest on Drawings in the Appropriation Accountmedium
Cost and Management Accounting
45 questions · 5 topics
Cost Classification
9
- Product Costs vs Period Costs: What Is the Difference?easy
- Product or Period Cost: Factory Renteasy
- Product or Period Cost: Sales Commissioneasy
- Direct Materials: Identifying Them for a Furniture Makereasy
- Fixed Cost vs Variable Cost: Behaviour as Output Changeseasy
Manufacturing Accounts and Overheads
12
- Three Types of Inventory in a Manufacturing Businesseasy
- Work in Process Inventory: What Is It?easy
- Raw Materials Used: Computing Direct Materials Consumedmedium
- Cost of Goods Manufactured: The Calculationmedium
- Manufacturing Overhead: Which Cost Belongs?medium
Cost-Volume-Profit and Break-Even Analysis
11
- Contribution Margin: The Formulaeasy
- Break-Even Point: What Does It Mean?easy
- Break-Even Point in Units: The Calculationmedium
- Break-Even Point in Sales Dollars: Using the Contribution Margin Ratiomedium
- Margin of Safety: The Calculationmedium
Standard Costing and Variances
7
- What Is a Standard Cost?easy
- Direct Materials Price Variance: The Calculationmedium
- Direct Materials Quantity Variance: The Calculationmedium
- Direct Labour Rate Variance: The Calculationmedium
- Direct Labour Efficiency Variance: The Calculationmedium
Financial Analysis
32 questions · 2 topics
IFRS and Advanced Topics
47 questions · 9 topics
Revenue Recognition
10
- Revenue Recognition — Basiceasy
- Accrual Accounting — When Is Revenue Recognized?easy
- Services Performed on Account — Effecteasy
- Deferred Revenuemedium
- Gift Card Breakage — IFRS 15medium
Income Tax and Deferred Tax
7
- Deferred Tax on a Retrospective Policy Changehard
- IAS 12 — Deferred Tax on Accelerated Depreciationhard
- IAS 12 — Deferred Tax Asset from Tax Losseshard
- IAS 7 — Classifying Income Taxes Paidhard
- Deferred Tax Liability from Accelerated Depreciationhard
Accounting Policies, Estimates and Errors
7
- Consistency and Changing Policiesmedium
- Change in Accounting Policy vs Estimate — Inventory Formulamedium
- Theory: Estimate Change vs Accounting Policymedium
- Spot the Error: Useful-Life Change Restatedmedium
- Estimate, Policy, or Error?medium
Related Party Transactions
8
- IAS 24 - Nature of the standardeasy
- IAS 24 - Parent relationship with no transactionseasy
- IAS 24 - Transactions with no price chargedeasy
- IAS 24 - Common directorshipmedium
- IAS 24 - Economic dependencemedium