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- 1. Multiple Choice
An accounting report that is used to show revenue and expenses is the
Loss and Profit Statement
Reveune and Expenses Statement
The Profit or Loss Statement
The Income Statement
- 2. Multiple Choice
The Qualitative characteristics that need to be considered when preparing an Income Statement are...
comparability and understandability
relevance and reliability
relevance and understandability
comparability and relevance
- 3. Multiple Choice
The main purpose of an Income statement is to...
calculate profit or loss
provide information in an informative manner
- 4. Multiple Choice
Profitability is....
Revenue less expenses
When a business makes a profit
a comparison of profit earned with an investment made
when revenue is higher than expenses
- 5. Multiple Choice
Return on Assets is ....
profit greater than assets
assets greater than profit
a comparison of total profit to total assets
a measure of the owner's investment
- 6. Multiple Choice
ROI stands for
Return on Interest
Return on other than investment
Return on Owner's Investment
Return on Owner's Interest
- 7. Multiple Choice
COGS stands for
cost of goods sales
cost of goods serviced
cost of goods sold
- 8. Multiple Choice
The difference between sales and Gross profit is
cost of sales
cost of goods sold
adjusted gross profit
gross profit
- 9. Multiple Choice
After Gross profit you have...
less Other Expenses
add other Revenue
Adjusted Gross Profit
- 10. Multiple Choice
Cartage Outwards is part of COGS
True
False
- 11. Multiple Choice
Cartage Inwards is not part of COGS
True
False
- 12. Multiple Choice
A cost of delivering inventory to customers is
cartage inwards
cartage outwards
- 13. Multiple Choice
A cost incurred in bringing inventory into the business is
cartage outwards
cartage inwards
- 14. Multiple Choice
A reduction in the outflow payable to libilities is a
discount expense
discount revenue
- 15. Multiple Choice
A reduction in the inflow from accounts receivable is a
discount expense
discount revenue
- 16. Multiple Choice
Sales $88 000 Cost of sales $42 000 means GP is
44 000
48 000
46 000
- 17. Multiple Choice
What does the term 'Net Profit' refer to?
Total revenue minus total expenses
Total assets minus total liabilities
Total revenue minus cost of goods sold
Total profit minus owner's investment
- 18. Multiple Choice
What is the primary purpose of a Balance Sheet?
To show the profitability of a business
To provide information about the financial position of a business
To calculate the net income
To list all the expenses of a business
- 19. Multiple Choice
Which financial statement provides a summary of a company's revenues and expenses over a specific period?
Balance Sheet
Income Statement
Cash Flow Statement
Statement of Owner's Equity
- 20. Multiple Choice
What does the term 'Liquidity' refer to in accounting?
The ability to meet short-term obligations
The profitability of a business
The total assets of a business
The owner's investment in the business
- 21. Multiple Choice
Which of the following is considered a current asset?
Land
Accounts Receivable
Building
Equipment
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