Financial Accounting

Accounting Job Test Questions and Answers Part 2

Accounting Job Test Questions Questions Part 2

Following are the important questions that are usually asked in a job test for accounting and finance posts jobs. Hopefully, this will be very helpful for you in the preparation for your job tests and interviews.

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When are Drawing Debited?

Correct! Wrong!

Drawings Account is debited when cash is withdrawn for personal use.

What is the common characteristic of all the assets owned by a company?

Correct! Wrong!

Future economic benefits are the most important characteristic that all assets of a business have.

Owner's claim on total assets is?

Correct! Wrong!

Owner's claim on total assets is called equity.

When are balance sheets prepared?

Correct! Wrong!

Balance Sheets are prepared yearly as it displays the liabilities and assets of a company.

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Purchases are Debited when?

Correct! Wrong!

Purchases are debited when an organisation purchases goods on credit.

What are Drawings?

Correct! Wrong!

Drawing in accounts is the record kept by a business owner or accountant that shows how much money has been withdrawn by business owners.

What is a Company?

Correct! Wrong!

A company is a legal entity formed by a group of individuals to engage in and operate a business, commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Capital + Liabilities = ?

Correct! Wrong!

This is the fundamental accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a person or business.

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In what order data is entered into Journal?

Correct! Wrong!

Journal entries are typically entered in chronological order.

What are Liabilities?

Correct! Wrong!

Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations.

What is Bank Overdraft?

Correct! Wrong!

An overdraft facility linked to your everyday transaction account is an unsecured line of credit designed to cover short-term cash flow shortfalls.

The account which increases equity is known as?

Correct! Wrong!

Revenue, Owner Investments and retained earnings increase the equity of a company.

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The main Purpose of Financial Accounting is?

Correct! Wrong!

The purpose of financial accounting is to provide financial information to shareholders.

What is an Income?

Correct! Wrong!

Income is the revenue a business earns by selling its goods or by providing services.

What is a nominal account?

Correct! Wrong!

Nominal accounts are used to collect accounting transaction information for revenue, expense, gain, and loss transactions, all of which appear in the income statement.

What occurs when expenses are greater than income?

Correct! Wrong!

Net loss occurs when Expenses are greater than income. A net loss, sometimes referred to as a net operating loss (NOL), occurs when expenses exceed the income or total revenue produced for a given period of time.

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What is the book of original entries?

Correct! Wrong!

General Journal is the first place where a transaction is entered into the books.

Assets - Liabilities = ?

Correct! Wrong!

Assets - Liabilities = Capital is correct.

How many accounts are affected by a business transaction?

Correct! Wrong!

Two accounts are affected whenever a transaction takes place in a business organization.

What does improper utilization of resources and over investment in assets indicate?

Correct! Wrong!

Improper Utilization of resources and over investment in assets indicate a Low Return on Investment.

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