Financial Statements and Accounting Transactions MCQs

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The financial position of the business on a given date is reported on the






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The net profit or loss for a particular period of time is reported on the






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The investment of cash into the business results in a/an






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The purchase of supplies for cash will result in a/an






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Services rendered for cash will result in a/an






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Cash is received from a client for office rental space.






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Keeping the records of the business separate from the personal records of the owner of the business is said to be adherence to which accounting princi...






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Which of the following is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date?






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Peter Atli decided to pay himself a salary of $3,000 per month for the work he performs for his business, a single proprietorship. Each time a cheque ...






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The personal telephone bill of Junior Sample was paid by issuing a cheque from the business chequing account. No business calls had been made from Jun...






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Which of the following accounts is NOT a liability?






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Assets total $50,000 and Liabilities total $10,000. The equity of the business must total






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The resulting amount when total liabilities are subtracted from total assets is known as






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A broad rule adopted by the accounting profession as a guide in measuring, recording, and reporting the financial affairs and activities of a business...






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Using a sales invoice as the basis for recording a sale of merchandise is an example of using which accounting principle or concept for recording tran...






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Which of the following statements is true?






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Keith Manich deposited $5,000 in a bank account he established for a pet store that he is going to own and operate as KM’s Pets. Recording the ...






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Better-Cars Selection, a used car dealer, has total assets and liabilities of $50,000 and $18,000, respectively. The firm constructed a shelter for it...






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The owner of a computer services business was able to acquire a new computer, valued at $5,000, by establishing an account with the computer vendor, C...






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A sole proprietor recorded the payment of an account payable to an office supplies store. Recording the transaction will






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If during the accounting period the assets increased by $7,000, and the owner’s equity decreased by $3,000, then the liabilities must have






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One of the local fast-food outlets hired a first-year accounting student to oversee the cash-collection procedures. When the firm pays the student her...






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Which is NOT true of common-size comparative statements?






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Net sales were $450,000, and the accounts receivable turnover was 5.5 times. What is the average accounts receivable?






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The cost of goods sold was $240,000. Beginning and ending merchandising inventory balances were $20,000 and $30,000, respectively. The merchandise inv...






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The days’ sales in inventory is 73. The cost of goods sold is $720,000. The net sales are $1,020,000. The beginning inventory was $82,000. What...






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Total asset turnover is a component of:






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Which change in the following ratios would be regarded as generally favorable by creditors but generally unfavorable by shareholders?






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Which of the following formulas and its results is not correct?






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Which of the following ratios would not be considered a measurement of short-term liquidity?






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Which of the following ratios would be of the least interest to the short-term creditor of the business?






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Net income is not used as a numerator or a denominator in which of the following financial ratios?






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Net sales were $360,000. The cost of goods sold was $180,000. Operating expenses were $120,000. The ending balance of the Accounts Receivable account ...






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The denominator in the formula to calculate the return on common shareholders’ equity is:






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Which of the following formulas is used to calculate a price-earnings ratio?






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The balance of the Common Shares account was $400,000 for the entire fiscal year. Net income for the year was $40,000, of which 25% was distributed to...






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The market price per share is $32. The price earnings ratio is 5.0. The earnings per share are:






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Which line is NOT correct?






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Details of each class of stock must be reported: