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BASICS CONCEPTS OF ACCOUNTING & COMMERCE

Quiz by Commerce Dept St.PiousX College

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20 questions
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  • Q1
    What does the term 'ROI' Stand for in Accounting and Commerce?
    Revenue on Income
    Return on Investment
    Rate of Interest
    Risk of Investment
    30s
  • Q2
    What is a 'Balance Sheet' in Accounting .
    A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.
    A report on employee salaries
    A summary of market trends
    A document that tracks daily expenses
    30s
  • Q3
    What is the difference between 'Gross Profit' and 'Net Profit'?
    There is no difference between gross profit and net profit.
    Gross profit is the revenue minus the cost of goods sold, while net profit is the revenue minus all expenses.
    Net profit is the revenue minus the cost of goods sold, while gross profit is the revenue minus expenses.
    Gross profit includes all expenses, while net profit only includes revenue.
    30s
  • Q4

    The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as

    Intangible Asset

    Tangible Asset

    Current Asset

    Fixed Asset

    30s
  • Q5

    If  Goods are taken for own purposes by the Proprietor 

    it should be

    Debit Drawings Account, Credit Purchases Account

    Debit Purchases Account: Credit Drawings Account

    Debit Sales Account: Credit Stock Account

    Debit Drawings Account: Credit Stock Account

    30s
  • Q6

    If a trial balance totals do not agree, the difference must be entered in

    The Profit and Loss Account

    A Suspense Account

    A Nominal Account

    The Capital Account

    30s
  • Q7
    What is the difference between 'Debit' and 'Credit' in Accounting?
    Debits increase liabilities, while credits increase assets and expenses.
    Debits decrease equity, while credits decrease revenues.
    Debits increase assets and expenses, while credits increase liabilities, revenues, and equity.
    Debits and credits have the same effect on financial accounts.
    30s
  • Q8

    Which of the following is not a business transaction?

    Paid son’s fees from the business Rs. 2,000

    Bought furniture of Rs. 10,000 for business

    Paid son’s fees from her personal bank account Rs. 20,000

    Paid for salaries of employees Rs. 5,000

    30s
  • Q9
    What is the formula for calculating Gross Profit?
    Gross Profit = Revenue - Cost of Goods Sold
    Gross Profit = Revenue + Cost of Goods Sold
    Gross Profit = Revenue / Cost of Goods Sold
    Gross Profit = Revenue * Cost of Goods Sold
    30s
  • Q10

    Which of the following is correct?

    Closing Stock shown in Trial Balance is recorded in Balance Sheet

    Income tax is a trade expense

    Prepaid Expenses Account is Nominal Account

    More than one of the above

    30s
  • Q11
    What does the abbreviation 'GAAP' stand for in accounting?
    General Accounting Assessment Procedures
    Generally Accepted Accounting Principles
    Global Accounting Practices
    Government Accounting Policies
    30s
  • Q12
    What is the difference between Cash Accounting and Accrual Accounting?
    Cash accounting only records expenses, while accrual accounting only records revenues
    Cash accounting records revenues when they are earned and expenses when they are incurred, while accrual accounting doesn't consider timing
    Cash accounting records revenues and expenses when they are actually received or paid, while accrual accounting records revenues and expenses when they are earned or incurred, regardless of when the money is actually received or paid.
    Cash accounting and accrual accounting are the same in terms of recording transactions
    30s
  • Q13
    What is the definition of a Liability in Accounting?
    An obligation or debt that a company owes to outside parties
    The physical assets owned by a company
    The amount of money invested by shareholders in a business
    The total revenue generated by a company
    30s
  • Q14
    What does the term 'Accounts Receivable' refer to in Accounting?
    Money owed to a company by its customers for goods or services provided on credit
    Money that a company owes to its suppliers
    The amount of cash on hand in a company's bank account
    The total revenue generated by a company in a year
    30s
  • Q15

    The time gap between the payment for raw material purchases and collection of cash from sales is referred as the

     

    Both A & B

    None of the above 

    Ccash Cycle 

    Accounting   Cycle 

    30s

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