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.
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.
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.
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. ;-)
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.
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
Return from Basic Accounting Questions to the Home Page
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
Bought goods for cash $23000, how will i post it?
Trial Balance Should Always Balance?
Should the debit and credit totals of a trial balance always agree? If so, why ?
The Best Accounting System
"The best accounting system provides managers with all the information they would like to have." Do you agree with this statement? Why or why not?
T-Accounts, Adjusting & Closing Entries, Trial Balance and Financial Statements Exercise
ASSIGNMENT
Οn October 1, 20xx, Jason Dauphinais opened Dauphinais Appliance Serνice. During the month, he completed the following transactions for …
Calculating the Liquidity Ratio
Q: How do you calculate the liquidity ratio?
Accounting for Debit and Credit Card Transactions
How do you account for purchases made by debit or credit card?
Journal Entry Question:
Basic Expense
Prepare the journal entry for the following transaction:
Paid rent 200
Manufacturing Costs Question
(The cost of raw materials purchased during the year)
Please help me with the following manufacturing costs question:
Inventories
Beginning …
Accounting Prerequisites
Q: What are the things I need first to begin studying accounting?
A: Not sure exactly what you mean here Juana. If you mean subjects you need to have …
Examples of Liabilities
Give an example of a liability.
Bad debts in Cash Flow Statement?
Q: Where is the writing off of bad debts entered on the cash flow statement?
Thanks,
Katrien
A: It's not in the cash flow statement as it's …
Questions - Accounting for Donations
Q: An organization recently got a donation of a Motor Vehicle purchased for $40,000. How does the receiving organization account for it?
A: I would …
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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