Quiz Financial Accounting

Quiz Financial Accounting
Principles of Accounting (KETE201)
1.Which of the following are not users of accounting information about a business organization?
Owners
Suppliers
Government
Employees
None of the above
2.The accounting information system comprises four main procedures: analysis, recording, reporting
and identification. The order in which they occur is:
Reporting, analysis, recording, identification
Identification, analysis, recording, reporting
Analysis, identification, recording, reporting
Identification, recording, analysis, reporting
Analysis, recording, reporting, identification.
3.The Accounting Equation is expressed as:
Assets + Liabilities = Owners Equity
Liabilities - Assets = Owners Equity
Assets = Liabilities + Owners Equity
Assets = Liabilities - Owners Equity
All of the above
4.If you wish to establish the level of payments received from customers during a particular period,
the financial report that you would peruse would be:
The Balance Sheet
The Cash Flow Statement
The Income Statement
All of the above.
5.The balance sheet shows the financial status of a company:
at a particular point in time.
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for a period of a month, quarter, or year.
from the beginning of a period to the end of the period.
only at the end of the year.
6.The statement of cash flows shows the financial status of a company:
at a particular point in time.
for a period of a time not including quarters.
from the beginning of a period to the end of the period.
only at the end of the year.
7.The Statement of Cash Flows includes which activities?
revenue.
sales.
operating.
purchases.
8. The Statement of Financial Position (balance sheet) of a business showed the following balances:
Accounts Receivable $15,000, Inventory $10,000, Cash at Bank $25,000 Vehicles $20,000, Short-term
Loan $25,000. The value of the Owner's Investment would be:
$ 50,000
$ 45,000
$ 70,000
$ 85,000
none of the above
9.The Wages Payable account is an example of:
an expense.
an asset.
* a liability.
an owners' equity item.
10.Owner's equity is increased by:
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Withdrawal
Net income
Withdrawal of cash
Net loss
11. Supplies is classified as which type of account?
Liability
Owner's equity
Asset
Expense
12. The vendor, Ashe Builder's Supply Company, is classified as which type of account?
Expense
Liability
Owner’s equity
Asset
13.A decrease in owner's equity resulting from costs of operating a business is a/an:
aExpense
Asset
Liability
Revenue
14.An increase in owner's equity resulting from the operation of a business is called a/an:
Withdrawal
Asset
Revenue
Expense
15.A one-owner business is known as a:
Proprietorship
Partnership
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Cooperative
Corporation
16. The segment of a corporation’s annual report that describes the corporation’s accounting methods
is the:
Management discussion and analysis.
Auditor’s report.
Notes to the financial statements.
Income statement.
17.Which statement about users of accounting information is incorrect?
Management is considered an internal user. - Đ
Taxing authorities are considered external users. - Đ
Regulatory authorities are considered internal users.
Present creditors are considered external users.
18.Stockholder’ equity represents:Trình đọc Chân thực
Claims of creditors.
Claims of employees.
Claims of owners.
The difference between revenues and expenses.
QUIZ 2
1.In a classified balance sheet, assets are usually classified as:
Current assets, long-term investments; tangible assets; and intangible assets.
current assets; long-term investments; property, plant, and equipment; and intangible assets.
current assets; long-term investments; property, plant, and equipment; and common stock.
current assets; long-term assets; property, plant, and equipment; and intangible assets.
2.The balance in retained earnings is not affected by:
net income.
net loss.
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issuance of common stock.
dividends.
3.Current assets are listed:
by importance.
by longevity.
alphabetically.
by order of expected conversion to cash
4.The correct order of presentation in a classified balance sheet for the following current assets is:
accounts receivable, cash, prepaid insurance, inventory.
cash, inventory, accounts receivable, prepaid insurance.
cash, accounts receivable, inventory, prepaid insurance.
inventory, cash, accounts receivable, prepaid insurance.
5.A company has purchased a tract of land. It expects to build a production plant on the land in
approximately 5 years. During 5 years before construction, the land will be idle. The land should be
reported as:
property, plant, and equipment.
land expense
a long-term investment.
an intangible asset.
6.Which is an indicator of profitability?
Free cash flow
Debt to assets ratio
Earnings per share
Current ratio.
7.Which of these measures is an evaluation of a company's ability to pay current liabilities?
Earnings per share
Current ratio.
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Both above options
None of the above.
8.The following ratios are available for Reilly Inc. and O'Hare Inc.
Current Ratio. Debt to Assets Ratio
Reilly Inc. 2:1 75%
O'Hare Inc. 1.5:1. 40%
Compared to O'Hare Inc., Reilly Inc. has:
higher liquidity, higher solvency, and higher profitability
lower liquidity, higher solvency, and higher profitability
higher liquidity, lower solvency, and higher profitability
higher liquidity and lower solvency, but profitability can not be compared based on information
provided.
9.For 2022, Spanos Corporation reported net income $26,000, net sales $400,000, and weighted-average
common shares outstanding 4,000. There were preferred dividends of $2,000. What was the 2022
earnings per share?
$6.00
$6.50
$99.50
$100.00.
10.Companies can use free cash flow to:Trình đọc Chân thực
pay additional dividends.
pay off debts
acquire property, plant, and equipment.
all of the above
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Quiz Financial Accounting

Principles of Accounting (KETE201)

None of the above

Reporting, analysis, recording, identification

Identification, analysis, recording, reporting

Analysis, identification, recording, reporting

Identification, recording, analysis, reporting

Analysis, recording, reporting, identification.

3.The Accounting Equation is expressed as:

Assets + Liabilities = Owners Equity

Liabilities - Assets = Owners Equity

Assets = Liabilities + Owners Equity

Assets = Liabilities - Owners Equity

All of the above

The Balance Sheet

The Cash Flow Statement

The Income Statement

All of the above.

5.The balance sheet shows the financial status of a company:

at a particular point in time.

from the beginning of a period to the end of the period.

only at the end of the year.

6.The statement of cash flows shows the financial status of a company:

at a particular point in time.

for a period of a time not including quarters.

from the beginning of a period to the end of the period.

only at the end of the year.

7.The Statement of Cash Flows includes which activities?

none of the above

9.The Wages Payable account is an example of:

an owners' equity item.

10.Owner's equity is increased by:

11. Supplies is classified as which type of account?

15.A one-owner business is known as a:

Management discussion and analysis.

Notes to the financial statements.

17.Which statement about users of accounting information is incorrect?

Management is considered an internal user. - Đ

Taxing authorities are considered external users. - Đ

Regulatory authorities are considered internal users.

Present creditors are considered external users.

18.Stockholder’ equity represents:Trình đọc Chân thực

The difference between revenues and expenses.

1.In a classified balance sheet, assets are usually classified as:

Current assets, long-term investments; tangible assets; and intangible assets.

2.The balance in retained earnings is not affected by:

3.Current assets are listed:

by order of expected conversion to cash

accounts receivable, cash, prepaid insurance, inventory.

cash, inventory, accounts receivable, prepaid insurance.

cash, accounts receivable, inventory, prepaid insurance.

inventory, cash, accounts receivable, prepaid insurance.

property, plant, and equipment.

6.Which is an indicator of profitability?

Free cash flow

Debt to assets ratio

Earnings per share

7.Which of these measures is an evaluation of a company's ability to pay current liabilities?

Earnings per share

None of the above.