Basic Accounting Questions:
Quizzes, Multiple-Choice and More

Practicing basic accounting questions is super important, it really helps one understand all the basic concepts in the subject. For this reason I've created this page listing quizzes and practice questions on fundamental accounting topics.

One thing I would recommend is to practice these accounting questions according to a set time frame. This can really help you get used to exam settings and ensure you're not taking too long to complete each question.

For your convenience, difficulty levels and time limits are stated at the beginning of each of these exercises.

Basic Accounting Test - Multiple Choice Quiz

First up is a basic multiple choice accounting test or quiz, taken directly from the Accounting Basics books. This short test (9 questions) covers the first theory section of this site, Basic Accounting Concepts. 

It'll test your understanding of the accounting equation and its main elements - assets, liabilities and owner's equity. It also covers the financial position of a business.

Accounting Equation Questions and Answers

As we all know, the basic accounting equation is the foundation of accounting, so you better know this well. 

Our first and main accounting equation exercise is composed of 5 questions that build one on top of the other, testing you on the balances of assets, liabilities and owner's equity and even a little bit on the effect of profit.

Click here for the Accounting Equation Questions and Answers.

More Accounting Equation Exercises

Here are some more questions on the accounting equation and owner's equity to make sure you know their components really well: 

1. Basic Accounting Equation Question
2. Accounting Equation Exercise: Fill in the Blank
3. Owner's Equity Question: Fill in the Blank

Name the Accounts Exercise (Plus Journals)

This is a great exercise for testing your understanding of the different accounts that are affected by some basic transactions. Note that this is a beginner exercise and does not cover a trading business (purchase and sale of goods). The first part of the solution contains just the names of the accounts, while the optional second part shows the journal entries.

Click here to try the Name the Accounts Exercise.

Double Entry Exercise:
Which Accounts Are Affected?

This is a great exercise and similar to the one just above, but covers many more types of transactions and includes a grid for you to complete (as shown here). Note that this exercise includes transactions for a trading business (purchase and sale of goods). The first part of the solution contains the accounts affected (in the grid), while the second part shows the full journal entries.

Click here for the Double Entry Exercise.

Basic Accounting Quiz:
Asset and Liability Balance Sheet Categories

This is a quick test of your ability to classify different items correctly on a balance sheet, not just the general categories of assets and liabilities, but also whether they should be non-current or current.

Click here for the Basic Accounting Quiz: Asset and Liability Balance Sheet Categories.

Basic Accounting Quiz:
Capital Expenditure vs Revenue in Nature

In this quiz you need to name whether certain items are capital expenditure or revenue in nature. These are good concepts to understand (I'll explain them in the solution) and the exercise is a good test of your understanding of some of the basic elements of accounting.

Click here for the Basic Accounting Quiz: Capital Expenditure vs Revenue in Nature.

Fixed Assets Question: Sale and Purchase

This is a nice little question on the sale and purchase of fixed (or non-current) assets.

Depreciation is part of this question but you actually don't need to know depreciation well at all to work this out. Full calculation provided as part of the solution.

Click here for the Fixed Assets Sale and Purchase Question.

Income Statement Multiple-Choice Quiz

Test yourself on the income statement with this 15-minute timed multiple-choice test.

Beginner to intermediate level, with 10 multiple-choice questions that will test you on some theory on the income statement and its components as well as calculations of incomes, expenses, gross and net profit.

Click here to take the income statement quiz now.

Basic Journal Entries Question:
Capital + Fixed Asset Purchase

This short and simple exercise will test you on the journal entries for two transactions: the owner's investment in the business (capital) as well as the purchase of some assets. Time limit: 5 minutes. Beginner level.

Click here for the Capital + Fixed Asset Purchase Journal Entries Question.

More Basic Questions

• Name the Accounts Question: Bills and Receipts

Questions and Answers on Journal Entries

Here are some questions from visitors around the world asking what the journal entry is for specific transactions (answers included of course):

• What is the Journal Entry for a Complex Capital Investment by the Owner?
• What is the Journal Entry for Shares Issued?
• What is the Journal Entry for Shares Issued for Multiple Assets?
• What is the Journal Entry for a Cheque Received?
• What are the Journal Entries for a Returned Check?
• What is the Journal Entry for Purchasing Furniture?
• What is the Journal Entry for Purchasing Goods?
• What is the Journal Entry for Purchase Returns?
• What is the Journal Entry for Carriage Inward?
• Basic Journal Entry Question: Capital + Purchase Returns
• Cash Sales Journal Entry Example
  
• Credit Sales Journal Entry Example
• Sales Journal Entry Example: Credit Card Transactions (Perpetual Inventory System)
  
• Rent Expense Journal Entry Example
• What is the Journal Entry for Accrued Rent?
  
• Accrued Expenses Journal Entry: Debit or Credit?
  
• What is the Journal Entry for a Payment on Account?
  
• Journal Entry Question: Settlement of Debtors Account - Bad Debts or Discount Allowed
• How do you record Interest Charged by a Creditor on an Overdue Account?

More Basic Accounting Questions

Here are some more basic accounting questions and answers:

• What is the best way to study accounting?
• As a student, how is accounting useful to me?
  
• Why is accounting so important? And why is it so confusing?
• Is Equity and Capital the Same?
  
• Is my Building an Asset or Liability?
• Drawings Example: Non-Cash Assets (Office Supplies)
  
• What is an Outstanding Salary?
  
• Accounts Receivable vs Accounts Payable
• What do Balance c/f & Balance b/f stand for?
  
• What is the difference between the Income Statement and the Profit and Loss Account?
• Balance Sheet, Owner's Equity Statement and Income Statement: Temporary vs Permanent Accounts?
  
• Accrued Expenses and Revenue: Closed or Not?

Still Didn't Find What You're Looking For?

There are hundreds of questions posted all around this website. If you're looking for a question on a specific accounting topic and didn't find it above, use this site search bar. It'll help you find the question you're looking for, or at least something close.

Just enter your search term below, click "search," and all pages on this site containing that term will show up.

Full Accounting Questions and Exercises

If you want to practice more questions, then you should get the Accounting Basics: Workbook.

With 88 questions and exercises, this workbook will test you on all the accounting basics - from the basic accounting equation and journal entries to T-accounts, inventory and financial statements. 

The book also includes exercises on more advanced topics: depreciation, bad debts, provisions, closing entries, bank reconciliations, prepaid income and expenses, and more.

All of these questions and exercises will help you prepare very well for your tests and exams.

Stay up to date with ABfS!
Follow us on Facebook:

Return from Basic Accounting Questions to the Home Page 

© Copyright 2009-2021 Michael Celender. All Rights Reserved. 
Click here for Privacy Policy.