79 Accounting Trivia Questions with Answers
79 public questions with answers, drawn from the well. How many can you answer?
Accounting trivia covers the rules, concepts, people, and reports used to record and interpret financial activity. Questions range from core bookkeeping ideas—such as accumulated depreciation being a contra-asset account—to technical standards, including the IFRS guidance for property, plant, and equipment.
This hub also tests knowledge of valuation and analysis. You may need to identify the quick ratio, recognize a deferred tax asset, name Luca Pacioli as the “Father of Accounting,” or distinguish an unqualified audit opinion from other opinions. It suits accounting students, finance professionals, classroom review sessions, and pub quizzes that favor precise business knowledge.
Under US GAAP, what inventory valuation rule requires inventory to be reported at the lower of its cost or its market value?
Answer
Lower of cost or market
Accumulated depreciation is an example of what type of account?
Answer
Contra asset account
What type of audit opinion states that financial statements are fairly presented in accordance with GAAP?
Answer
Unqualified opinion
What is the term for the reduction in the value of goodwill due to a decline in fair value?
Answer
Goodwill impairment
What is the term for the system where every transaction has equal debits and credits?
Answer
Double-entry bookkeeping
What accounting method, used by Enron, records revenue from long-term contracts immediately?
Answer
Mark-to-market accounting
What US law, enacted in 2002, created the Public Company Accounting Oversight Board?
Answer
Sarbanes-Oxley Act
What accounting method records revenue when earned and expenses when incurred?
Answer
Accrual basis
Which private-sector organization sets accounting standards in the United States?
Answer
Financial Accounting Standards Board
What does FIFO stand for in inventory costing?
Answer
First In, First Out
What is the term for the excess of current assets over current liabilities?
Answer
Working capital
What is the name of the IFRS statement that includes both net income and other comprehensive income?
Answer
Statement of comprehensive income
What is the name of the financial statement that shows the sources and uses of cash?
Answer
Cash flow statement
What is the accounting term for profits distributed to shareholders?
Answer
Dividends
Which financial statement summarizes revenues and expenses over a period?
Answer
Income statement
What is the term for money a business owes to its suppliers for purchases on credit?
Answer
Accounts payable
What does GAAP stand for in accounting?
Answer
Generally Accepted Accounting Principles
What IFRS standard governs accounting for leases?
Answer
IFRS 16
Under IFRS 15, what is the third step of the revenue recognition model?
Answer
Determine the transaction price
What is the term for expenses paid in advance for future periods?
Answer
Prepaid expenses
Which inventory costing method calculates cost based on the average cost of all units available?
Answer
Weighted average cost
What financial statement reports changes in retained earnings over a period?
Answer
Statement of retained earnings
What is the accounting term for money owed to a company by its customers on credit?
Answer
Accounts receivable
In accounting, what is the name of the complete list of accounts used by a business?
Answer
Chart of accounts
Accounting trivia — quick answers
What are good accounting trivia questions?
Good accounting trivia questions cover financial statements, bookkeeping, auditing, tax concepts, accounting standards, ratios, and notable figures. Examples include identifying the quick ratio, naming the standard for property, plant, and equipment under IFRS, and recognizing Luca Pacioli’s role in describing double-entry bookkeeping.
How hard is accounting trivia?
Accounting trivia can range from introductory to advanced. Basic questions may ask about account types or common financial ratios, while harder questions involve GAAP, IFRS, temporary differences, inventory valuation, audit opinions, and detailed reporting rules. This collection mixes foundational knowledge with professional-level terminology.
What is the quick ratio?
The quick ratio, also called the acid-test ratio, measures whether a company can cover its current liabilities with its most liquid current assets. It generally excludes inventory from current assets before dividing by current liabilities. Because inventory may take time to sell, the ratio provides a stricter liquidity test than the current ratio.
Who is known as the Father of Accounting?
Luca Pacioli, a 15th-century Italian mathematician and Franciscan friar, is widely known as the Father of Accounting. His 1494 work, Summa de Arithmetica, described the double-entry bookkeeping methods used by Venetian merchants. Pacioli did not invent every bookkeeping practice, but his published explanation helped preserve and spread the system.
What is an unqualified audit opinion?
An unqualified audit opinion, often called a clean opinion, states that an auditor believes the financial statements are presented fairly, in all material respects, according to the applicable accounting framework. It does not mean the company is free from every error or risk; it means no material issue required a modified opinion.