Basic Accounting Questions
and Answers

Knowing the basics of accounting is crucial for accounting students. And practicing questions is probably just as important. For this reason I've created a section on this website specifically dedicated to basic accounting questions.

Basic Accounting Test - Multiple Choice

basic accounting mcqs

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

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

Accounting Equation Exercises

accounting equation

The basic accounting equation is the foundation of accounting, so you should know this well. 

These accounting equation exercises will give you some good practice with understanding how the balances of assets, liabilities and owner's equity fit together, as well as a bit of a test of income and profit.

And for even more practice, check out our page on The Basic Accounting Equation and Changes to Owners Equity Question (Fill in the Blank).

More Basic Accounting Questions - Asked by Visitors from around the World

Here are more basic accounting questions and answers asked by fellow students from around the world (more to come soon):

Note that most of these questions have accompanying solutions but some do not. Please understand that I (Michael Celender) run this site on my own, and because there are hundreds of questions that have been submitted, I have not been able to answer every single one. Because of this I have also stopped accepting new submissions.

For questions that haven't yet been solved - you are welcome to try solve them yourself and post the answer for future visitors. They will very much appreciate your work.  ;-)

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

Accounting Basics: Workbook (click to view on Amazon)

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.

Amazon rating: 4.8 out of 5

Accounting Basics: Workbook is available in softcover on Amazon for $19.95

Click here to get the book on Amazon now.

Return from Basic Accounting Questions to the Home Page 

Questions Relating to This Lesson

Click below to see questions and exercises on this same topic from other visitors to this page... (if there is no published solution to the question/exercise, then try and solve it yourself)

Journal Entry: Cash Purchase of Goods 
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Calculating the Liquidity Ratio 
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Journal Entry Question:
Basic Expense
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Manufacturing Costs Question
(The cost of raw materials purchased during the year)
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Accounting Prerequisites 
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Examples of Liabilities 
Give an example of a liability.

Bad debts in Cash Flow Statement? 
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Questions - Accounting for Donations 
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Debtors Control - Credit Balance? 
Q: Is it possible for a debtor to have a credit balance?

Debits and Credits:
Why Liabilities on Credit Side?
Q: Hi, can you please explain to me WHY it is a general rule that increased liabilities would be on the credit side of a double entry equation??? Can't …

Groff Profit Percentage Question 
Q: The following information relates to 20.6/20.7 financial year of ABC: Sales 150,000 Purchases …

Contingent Liability 
Q: What do you mean by contingent liability?

Trading account (Cost of Goods Sold Formula) 
Q: What is the formula for Cost of goods sold in terms of sales?

How to Calculate VAT 
Q: How do I calculate the VAT included in the debtor and creditor control accounts? A: Control accounts for debtors and creditors are the full amounts …

Settlement Discount Granted and VAT 
Q: How will the VAT input and output be treated when settlement discount is granted? A: For those who aren't familiar with this term, VAT is short …


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