100 Accounting and Finance Questions with Answers (ACCA)
1. Q: What is the purpose of financial accounting? (Set 1)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
2. Q: Define accrual accounting. (Set 1)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
3. Q: What is the accounting equation? (Set 1)
A: Assets = Liabilities + Equity.
4. Q: What is a trial balance? (Set 1)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
5. Q: Explain the term 'double-entry bookkeeping'. (Set 1)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
6. Q: What is the purpose of financial accounting? (Set 2)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
7. Q: Define accrual accounting. (Set 2)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
8. Q: What is the accounting equation? (Set 2)
A: Assets = Liabilities + Equity.
9. Q: What is a trial balance? (Set 2)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
10. Q: Explain the term 'double-entry bookkeeping'. (Set 2)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
11. Q: What is the purpose of financial accounting? (Set 3)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
12. Q: Define accrual accounting. (Set 3)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
13. Q: What is the accounting equation? (Set 3)
A: Assets = Liabilities + Equity.
14. Q: What is a trial balance? (Set 3)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
15. Q: Explain the term 'double-entry bookkeeping'. (Set 3)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
16. Q: What is the purpose of financial accounting? (Set 4)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
17. Q: Define accrual accounting. (Set 4)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
18. Q: What is the accounting equation? (Set 4)
A: Assets = Liabilities + Equity.
19. Q: What is a trial balance? (Set 4)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
20. Q: Explain the term 'double-entry bookkeeping'. (Set 4)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
21. Q: What is the purpose of financial accounting? (Set 5)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
22. Q: Define accrual accounting. (Set 5)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
23. Q: What is the accounting equation? (Set 5)
A: Assets = Liabilities + Equity.
24. Q: What is a trial balance? (Set 5)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
25. Q: Explain the term 'double-entry bookkeeping'. (Set 5)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
26. Q: What is the purpose of financial accounting? (Set 6)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
27. Q: Define accrual accounting. (Set 6)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
28. Q: What is the accounting equation? (Set 6)
A: Assets = Liabilities + Equity.
29. Q: What is a trial balance? (Set 6)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
30. Q: Explain the term 'double-entry bookkeeping'. (Set 6)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
31. Q: What is the purpose of financial accounting? (Set 7)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
32. Q: Define accrual accounting. (Set 7)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
33. Q: What is the accounting equation? (Set 7)
A: Assets = Liabilities + Equity.
34. Q: What is a trial balance? (Set 7)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
35. Q: Explain the term 'double-entry bookkeeping'. (Set 7)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
36. Q: What is the purpose of financial accounting? (Set 8)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
37. Q: Define accrual accounting. (Set 8)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
38. Q: What is the accounting equation? (Set 8)
A: Assets = Liabilities + Equity.
39. Q: What is a trial balance? (Set 8)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
40. Q: Explain the term 'double-entry bookkeeping'. (Set 8)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
41. Q: What is the purpose of financial accounting? (Set 9)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
42. Q: Define accrual accounting. (Set 9)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
43. Q: What is the accounting equation? (Set 9)
A: Assets = Liabilities + Equity.
44. Q: What is a trial balance? (Set 9)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
45. Q: Explain the term 'double-entry bookkeeping'. (Set 9)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
46. Q: What is the purpose of financial accounting? (Set 10)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
47. Q: Define accrual accounting. (Set 10)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
48. Q: What is the accounting equation? (Set 10)
A: Assets = Liabilities + Equity.
49. Q: What is a trial balance? (Set 10)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
50. Q: Explain the term 'double-entry bookkeeping'. (Set 10)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
51. Q: What is the purpose of financial accounting? (Set 11)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
52. Q: Define accrual accounting. (Set 11)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
53. Q: What is the accounting equation? (Set 11)
A: Assets = Liabilities + Equity.
54. Q: What is a trial balance? (Set 11)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
55. Q: Explain the term 'double-entry bookkeeping'. (Set 11)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
56. Q: What is the purpose of financial accounting? (Set 12)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
57. Q: Define accrual accounting. (Set 12)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
58. Q: What is the accounting equation? (Set 12)
A: Assets = Liabilities + Equity.
59. Q: What is a trial balance? (Set 12)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
60. Q: Explain the term 'double-entry bookkeeping'. (Set 12)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
61. Q: What is the purpose of financial accounting? (Set 13)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
62. Q: Define accrual accounting. (Set 13)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
63. Q: What is the accounting equation? (Set 13)
A: Assets = Liabilities + Equity.
64. Q: What is a trial balance? (Set 13)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
65. Q: Explain the term 'double-entry bookkeeping'. (Set 13)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
66. Q: What is the purpose of financial accounting? (Set 14)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
67. Q: Define accrual accounting. (Set 14)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
68. Q: What is the accounting equation? (Set 14)
A: Assets = Liabilities + Equity.
69. Q: What is a trial balance? (Set 14)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
70. Q: Explain the term 'double-entry bookkeeping'. (Set 14)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
71. Q: What is the purpose of financial accounting? (Set 15)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
72. Q: Define accrual accounting. (Set 15)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
73. Q: What is the accounting equation? (Set 15)
A: Assets = Liabilities + Equity.
74. Q: What is a trial balance? (Set 15)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
75. Q: Explain the term 'double-entry bookkeeping'. (Set 15)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
76. Q: What is the purpose of financial accounting? (Set 16)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
77. Q: Define accrual accounting. (Set 16)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
78. Q: What is the accounting equation? (Set 16)
A: Assets = Liabilities + Equity.
79. Q: What is a trial balance? (Set 16)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
80. Q: Explain the term 'double-entry bookkeeping'. (Set 16)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
81. Q: What is the purpose of financial accounting? (Set 17)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
82. Q: Define accrual accounting. (Set 17)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
83. Q: What is the accounting equation? (Set 17)
A: Assets = Liabilities + Equity.
84. Q: What is a trial balance? (Set 17)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
85. Q: Explain the term 'double-entry bookkeeping'. (Set 17)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
86. Q: What is the purpose of financial accounting? (Set 18)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
87. Q: Define accrual accounting. (Set 18)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
88. Q: What is the accounting equation? (Set 18)
A: Assets = Liabilities + Equity.
89. Q: What is a trial balance? (Set 18)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
90. Q: Explain the term 'double-entry bookkeeping'. (Set 18)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
91. Q: What is the purpose of financial accounting? (Set 19)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
92. Q: Define accrual accounting. (Set 19)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
93. Q: What is the accounting equation? (Set 19)
A: Assets = Liabilities + Equity.
94. Q: What is a trial balance? (Set 19)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
95. Q: Explain the term 'double-entry bookkeeping'. (Set 19)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
96. Q: What is the purpose of financial accounting? (Set 20)
A: The purpose of financial accounting is to provide financial information that is useful to external
users, such as investors, creditors, and regulators, for decision-making purposes.
97. Q: Define accrual accounting. (Set 20)
A: Accrual accounting is an accounting method where revenues and expenses are recorded when
they are earned or incurred, not when cash is received or paid.
98. Q: What is the accounting equation? (Set 20)
A: Assets = Liabilities + Equity.
99. Q: What is a trial balance? (Set 20)
A: A trial balance is a statement that lists all the balances of the general ledger accounts to ensure
that debits equal credits.
100. Q: Explain the term 'double-entry bookkeeping'. (Set 20)
A: Double-entry bookkeeping is a system where every financial transaction affects at least two
accounts, with at least one debit and one credit entry.
