Fin621 Online 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?

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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?

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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?

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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?

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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?

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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.

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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 _____________.

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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?

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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?

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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?

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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"?

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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________

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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?

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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?

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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?

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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____________:

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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?

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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