Quiz 50: Income Statement Quiz

Test your knowledge of double entry bookkeeping with our income statement quiz.

If you need a refresher course on this topic take a look at our basics of bookkeeping tutorials, and our income statement tutorial.

Start the Income Statement Quiz

Do the following transactions result in an increase in net income for the business. Answer Yes or No to each question. Click on your answer to reveal whether its Right! or Wrong.

1. The business provides services and offers credit terms to a customer?
Right!
Wrong
2. A check is received from a customer is respect of an accounts receivable balance?
Wrong
Right!

 

3. The business obtains a loan from a bank?
Wrong
Right!
4. Fixed assets are disposed of for a profit and the proceeds received by the business?
Wrong
Right!
5. Equipment is purchased by the business for cash?
Wrong
Right!
6. Rents are received by the business from the renting of premises it owns?
Right!
Wrong
7. New capital is received into the bank account of the business?
Wrong
Right!

 

 

 

 

8. Interest is received on bank deposits held?
Right!
Wrong
9. Goods are sold to a customer for cash?
Right!
Wrong
10. A cash deposit is received from a customer?
Wrong
Right!

Try Another Double Entry Bookkeeping Quiz

The income statement quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below.

Last modified July 16th, 2019 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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