Accounting Exam Questions and Answers

Preparing for an accounting exam can be a daunting task, as it requires a thorough understanding of various concepts and principles. One effective way to enhance your preparation is to practice with accounting exam questions and answers. By doing so, you will not only solidify your knowledge but also become familiar with the format and structure of the exam. In this article, we have compiled a comprehensive list of accounting exam questions and answers to help you in your preparation journey.

Whether you are a student studying accounting or a professional looking to enhance your skills, these accounting exam questions and answers will provide you with valuable practice and insights. The questions cover a wide range of topics, including financial accounting, managerial accounting, auditing, and taxation. By attempting these questions, you will be able to assess your understanding and identify areas that require further study.

Remember, practice makes perfect, and by regularly practicing with accounting exam questions and answers, you will not only boost your confidence but also increase your chances of acing the exam. So let’s dive into the list of accounting exam questions and answers below.

See these accounting exam questions and answers

• What is the basic accounting equation?
• Define accrual accounting.
• What is the difference between financial accounting and managerial accounting?
• Explain the concept of depreciation.
• What is a trial balance?
• How do you calculate the net income?
• What are the four basic financial statements?
• Define the term “liquidity.”
• What is the purpose of a bank reconciliation statement?
• Explain the concept of double-entry accounting.
• What is the difference between a debit and a credit?
• How do you calculate the present value of future cash flows?
• Define the term “inventory turnover.”
• What is the purpose of a cash flow statement?
• Explain the concept of absorption costing.
• What is the difference between a liability and an expense?
• How do you calculate the return on investment (ROI)?
• Define the term “working capital.”
• What is the purpose of an income statement?
• Explain the concept of variable costing.
• What is the difference between a balance sheet and an income statement?
• How do you calculate the debt-to-equity ratio?
• Define the term “fixed cost.”
• What is the purpose of a statement of cash flows?
• Explain the concept of marginal costing.
• What is the difference between a general ledger and a subsidiary ledger?
• How do you calculate the return on assets (ROA)?
• Define the term “variable cost.”
• What is the purpose of a statement of retained earnings?
• Explain the concept of activity-based costing (ABC).
• What is the difference between a journal and a ledger?
• How do you calculate the gross profit margin?
• Define the term “contribution margin.”
• What is the purpose of a budget?
• Explain the concept of standard costing.
• What is the difference between an asset and a liability?
• How do you calculate the break-even point?
• Define the term “marginal cost.”
• What is the purpose of a cost of goods sold (COGS) statement?
• Explain the concept of cash basis accounting.
• What is the difference between a revenue and an expense?
• How do you calculate the current ratio?
• Define the term “opportunity cost.”

These accounting exam questions and answers are just a sample of the wide range of questions you may encounter in your accounting exam. It is crucial to practice with as many questions as possible to ensure thorough preparation. Remember to review your answers and understand the rationale behind each solution. Good luck with your accounting exam!