1. The Statement of Profit and Loss is also called the
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Financial Position
2. Which of the following is not a type of cash flows shown in the
Cash
...
1. The Statement of Profit and Loss is also called the
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Financial Position
2. Which of the following is not a type of cash flows shown in the
Cash Flow Statement?
Operating cash flow
Investing cash flow
Accounting cash flow
Financing cash flow
3. Which of the following is not a current asset?
Cash
Accounts payable
Inventory
Property, plant, and equipment
4. What are the effects on the balance sheet when a company
borrows a two-year bank loan of $1,000?
$1,000 credit in current liabilities; $1,000 debit in current assets
$1,000 credit in current liabilities; $1,000 debit in non-current
assets
$1,000 credit in non-current liabilities; $1,000 debit in current
assets
$1,000 credit in non-current liabilities; $1,000 debit in non-current
assets
5. What happens to the balance sheet when a company makes sales
of $500, of which $300 is paid in cash and $200 is sold on credit?
$300 debit in cash; $200 debit in accounts receivable; $500 credit in
retained earnings
$300 credit in cash; $200 credit in accounts receivable; $500 debit
in retained earnings
$300 debit in cash; $200 debit in accounts payable; $500 credit in
retained earnings
\
3/7
$300 credit in cash; $200 credit in accounts payable; $500 debit in
retained earnings
6. What happens to the balance sheet when a company pays
salaries of $5,000?
$5,000 credit in cash; $5,000 debit in accounts payable
$5,000 credit in cash; $5,000 debit in retained earnings
$5,000 debit in cash; $5,000 credit in retained earnings
$5,000 credit in cash; $5,000 debit in accounts receivable
7. Which of the following is the correct formula to calculate
operating income?
Operating income = Revenue - Direct operating cost
Operating income = Revenue - Indirect operating cost
Operating income = Gross profit - Direct operating cost
Operating income = Gross profit - Indirect operating cost
8. Given the following Balance Sheet extract, calculate the net profit
on the Income Statement. (Assuming tax rate = 10% of operating
profit)
37
25
21
33
9. Company A used $3,000 worth of office supplies this year but the
costs were not paid for until next year. Which of the following is not
a result of this transaction?
An expense of $3,000 is recorded on this year's income statement
There is a $3,000 credit in cash on the balance sheet
An accrued expense of $3,000 is recorded as current liabilities on
the balance sheet
There is a $3,000 credit in office supplies on the balance sheet
10. Company B purchased an equipment for $600. The equipment
has a useful life of 4 years and a scrap value of $50 at the end of
year 4. What is the depreciation expense for year 1 (using straight
line method)?
$137.5
$150.0
4/7
$122.5
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