Fin621 Online Quiz
Tuesday, May 04, 2010 Posted In Fin Edit ThisQuestion # 1 of 15 ( Start time: 03:27:58 PM ) Total Marks: 1
All of the following accounts would be closed in Income Summery Account EXCEPT:
Select correct option:
Commission earned account
Prepaid insurance
Salaries Expense account
Wages account
Question # 2 of 15 ( Start time: 03:28:56 PM ) Total Marks: 1
Which of the following is NOT one of the four basic financial statements?
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Balance sheet
Audit report
Income statement
Statement of cash flows
Question # 3 of 15 ( Start time: 03:29:40 PM ) Total Marks: 1
Which of the following account would be classified as a current asset on the balance sheet?
Select correct option:
Accumulated depreciation
Accounts receivable
Office equipment
Land
Question # 4 of 15 ( Start time: 03:30:23 PM ) Total Marks: 1
Which of the following may include the “analyzing the transaction” the first step of the accounting cycle?
Select correct option:
Determining the transaction amount
Determining the effected accounts
Identifying the event as a transaction
All of the given options
Question # 5 of 15 ( Start time: 03:30:54 PM ) Total Marks: 1
Financial statements are a subset of which of the following?
Select correct option:
Financial reporting
Financial statement analysis
Accounting information
Accounting system
Question # 6 of 15 ( Start time: 03:31:32 PM ) Total Marks: 1
Which of the following account would NOT be closed to the income summary account at the end of a period?
Select correct option:
Rent expense
Revenue earned
Wages expense
Accumulated depreciation
Question # 7 of 15 ( Start time: 03:32:13 PM ) Total Marks: 1
A business has purchased a building on cash, how it would be recorded in the journal?
Select correct option:
Building - Debit; Cash - Credit
Cash - Debit; Building - Credit
Building - Debit; Owner’s equity - Credit
Building - Debit; Accounts Payable - Credit
Question # 8 of 15 ( Start time: 03:33:03 PM ) Total Marks: 1
Pre-paid expense is a(n) _________ type of account.
Select correct option:
Liability
Asset
Revenue
Expense
Question # 9 of 15 ( Start time: 03:33:56 PM ) Total Marks: 1
An entry that effects more than one accounts is knows as _____________.
Select correct option:
Journal entry
Compound entry
Adjusting entry
Reversing entry
Question # 10 of 15 ( Start time: 03:34:29 PM ) Total Marks: 1
Which of the following would be affected by the difference between revenues and expenses?
Select correct option:
Assets
Owner’s equity
Liabilities
Capital
Question # 11 of 15 ( Start time: 03:35:51 PM ) Total Marks: 1
According to _______ the personal expenses paid by Mr. A from his own pocket would not be recorded in business books of account.
Select correct option:
Realization principle
Separate entity principle
Matching principle
Materiality principle
Question # 12 of 15 ( Start time: 03:37:01 PM ) Total Marks: 1
Which of the following is true about the “Profit” earned by the business?
Select correct option:
It shows the amount that is received from the customer in cash only
It always results in increase in closing cash balance of a period
It affects the owner’s equity and liabilities in balance sheet
It may improves the liquidity position of a business
Question # 13 of 15 ( Start time: 03:38:29 PM ) Total Marks: 1
Which of the following term refers to each element of the Balance Sheet?
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Ledger
Journal General
T- Account
Account
Question # 14 of 15 ( Start time: 03:39:37 PM ) Total Marks: 1
Which of the following is TRUE about both sides of the trial balance?
Select correct option:
Both sides are always positive
Both sides are negative
Both sides are equal
Both sides are not linked which each other
Question # 15 of 15 ( Start time: 03:40:19 PM ) Total Marks: 1
Which of the following represents the negative future cash flows for an enterprise?
Select correct option:
Assets
Owner’s equity
Liabilities
Capital
Another Quiz # 1
Question # 1 of 15 ( Start time: 03:09:37 PM ) Total Marks: 1
Financial statements are a subset of which of the following?
Select correct option:
Financial reporting
Financial statement analysis
Accounting information
Accounting system
Question # 2 of 15 ( Start time: 03:12:19 PM ) Total Marks: 1
Which of the following is an example of an accrual?
Select correct option:
Equipment purchased for use in the business
Book-keeping fees collected but not yet earned
Six months’ rent paid in advance
Interest earned but not yet received
Question # 3 of 15 ( Start time: 03:13:46 PM ) Total Marks: 1
Which of the following is true about "After closing trial balance"?
Select correct option:
It may consist of balances of only Real and Personal accounts
It may consist of balances of only Nominal and Real accounts
It may consist of balances of Nominal, Real and Personal accounts
It may consist of balances of only Nominal and Personal accounts
Question # 4 of 15 ( Start time: 03:15:06 PM ) Total Marks: 1
Which of the following may include the “analyzing the transaction” the first step of the accounting cycle?
Select correct option:
Determining the transaction amount
Determining the effected accounts
Identifying the event as a transaction
All of the given options
Question # 5 of 15 ( Start time: 03:16:17 PM ) Total Marks: 1
The basic purpose of financial statements is to assist users in evaluating the________
Select correct option:
Financial position
Profitability of an organization
Future prospects
All of the given options
Question # 6 of 15 ( Start time: 03:16:56 PM ) Total Marks: 1
Which one of the following would lead to the decrease in the owner’s equity?
Select correct option:
Purchasing a piece of land
Paying dividends to shareholders
Purchasing equipment on account
Paying back the principal of a loan
Question # 7 of 15 ( Start time: 03:18:14 PM ) Total Marks: 1
Which of the following type of reports is most frequently used by external users, such as investors?
Select correct option:
Financial Statements
Tax Forms
Management Reports
Audit reports
Question # 8 of 15 ( Start time: 03:18:48 PM ) Total Marks: 1
How many parts does each account have?
Select correct option:
Two
Four
Three
Five
Question # 9 of 15 ( Start time: 03:19:19 PM ) Total Marks: 1
Identify the statement that is NOT true about the Incomes Account and Expenses Account:
Select correct option:
These are the temporary accounts
These are closed in Income summery account
These may included in closing trial balance
These are also known as Nominal Accounts
Question # 10 of 15 ( Start time: 03:20:47 PM ) Total Marks: 1
If the estimated amount of depreciation on equipment for a period is Rs.2000, the adjusting entry to record depreciation would be:
Select correct option:
Depreciation expense - Debit; Equipment - Credit
Depreciation expense - Debit; Accumulated depreciation - Credit
Equipment - Debit; Depreciation expense - Credit
Accumulated depreciation - Debit; Depreciation expense - Credit
Question # 11 of 15 ( Start time: 03:22:02 PM ) Total Marks: 1
Which of the following terms present a cause and effect relationship with each other?
Select correct option:
Income statement and balance sheet
Revenue and assets
Assets and liabilities
Revenues and expenses
Question # 12 of 15 ( Start time: 03:23:06 PM ) Total Marks: 1
Accounting is called the “language of business” because____________:
Select correct option:
It communicates the financial information to the Management only
In order to run a business one must have knowledge about accounting
Different business accounts are involved in financial statements
It helps to organize and communicate financial information to end users
Question # 13 of 15 ( Start time: 03:23:55 PM ) Total Marks: 1
Which one of the following statement shows the effects of cash inflows and outflows?
Select correct option:
Balance Sheet
Statement of Owner’s Equity
Income Statement
Statement of Cash Flows
Question # 14 of 15 ( Start time: 03:24:28 PM ) Total Marks: 1
Which of the following would represent a non-cash expense for the business?
Select correct option:
Cost of building
Cost of inventory
Cost of office equipment
Depreciation of building
Question # 15 of 15 ( Start time: 03:25:12 PM ) Total Marks: 1
In which of the following account, a credit balance would be an evidence for a mistake or an error?
Select correct option:
Mr. A Capital Account
Cash account
Notes payable account
Drawings account
