FIN621 Quiz

Question # 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?

 Select correct option:

            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?

 Select correct option:

            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