Choose the correct answer A, B, C or D (only one).
1. A list of a company’s accounts and their account numbers is called
A Chart of accounts
B Journal
C Ledger
D Trial balance
A
2. In bookkeeping all business transactions include the idea of sources and uses of funds.
This type of an accounting system is called
A Accrual basis system of accounting
B Cash basis system of accounting
C Double-entry system of accounting
D Single-entry system of accounting
C
3. A chronological record of transactions is called
A Chart of accounts
B Journal
C Ledger
D Trial balance
B
4. In bookkeeping a book or document listing all accounts and their balances is called
A Chart of accounts
B Journal
C Ledger
D Trial balance
D
5. The financial statement to review the revenues and expenses of a business is called
A Income statement
B Balance sheet
C Capital statement
D Cash flow statement
A
6. The financial statement that describes the financial position of a company at a specific
point in time is called
A Income statement
B Balance sheet
C Capital statement
D Cash flow statement
B
7. Accounts payable, notes payable, rent payable, salaries and wages payable and taxes
payable are called
A Balance sheet
B Assets
C Capital
D Liabilities
D
8. Accounts receivable, notes receivable, rent receivable and interest receivable are called
A Balance sheet
B Assets
C Capital
D Liabilities
B
9. The financial statement to review the cash inflows and outflows of a business is called
A Income statement
B Balance sheet
C Capital statement
D Cash flow statement
D
10. Sales revenue is reported on the income statement. Cash payment from customers is
reported on the statement of cash flows and the activity would be described
A Financing
B Investing
C Operating
D Selling
C
11. The term used to describe the total of net income amounts less the dividends is
A Assets
B Gross profit
C Net profit
D Retained earnings
D
12. Assets that are expected to last for more than one year are classified as
A Current
B Long-term
C Intangible
D Tangible
B
13. The statement of cash flows shows every cash collection and every cash disbursement
for the accounting period. Each transaction is further broken down into one of three
categories of activity: operating, investing, or financing. In what order should the cash
activities be listed in the statement?
A operating, investing, financing, and net increase (or decrease) in cash
B operating, financing, investing, and net increase (or decrease) in cash
C financing, operating, investing, and net increase (or decrease) in cash
D Net increase (or decrease) in cash, operating, investing and financing
A
14. Companies publish financial accounts
A in a specified format designed for PR purposes
B in a format that is suitable for their own purposes
C in a format needed for taxation purposes of the company
D in a specified format defined by acts and decrees
D
15. Auditing means
A posting business transactions in the bookkeeping
B controlling that books are properly taken care of
C examining the solvency of a business
D examining the profitability of a business
B