accounting test.pdf

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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 [Show More]

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