Financial Account

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Financial Accounting

1. Obligation of business that represents the claims of these against the assets of the less cash is called?

A. Asset
B. An expense (WA)
C. Revenue
D. An equity
E. Liability

2. Net income results when

A. Assets > liability
B. Revenue = expenses
C. Revenue > expenses
D. Revenue < expenses
E. None

3. Resources owned by a business are referred to as

A. Stockholders equity
B. Liability
C. Assets
D. Revenue (WA)
E. None

4. Expenses are incurred

A. Only one rare occasion (WA)
B. To produce asset (WA)
C. To produce liability (WA)
D. To generate revenue
E. None.

5. Which is NOT an accounting assumption

A. Integrity
B. Going concern
C. Time period
D. Economic entitle
E. None.

6. Susana metro invested $ 7,009.87 now, and will receive $20,000 at the end of 11 years. What annual arte of investment will she be earning on her investments?

Fixed cost of $ 11Factor
7% 11 years2.105
8% 11 years2.332
9% 11 years2.580
10% 11 years2.853

A. 8 % (WA)
B. 7 %
C. 9 %
D. 10 %
E. None

7. Under the accurate basis of accounting?
A. Cash must be received before revenue us recognized
B. Net income is calculated by matching cash outflows against cash flow C. Events that change a company’s financial statements are recognized in the periods they occur rather than in the period in which cash flow is paid or received. D. The ledge account must be adjusted to reflect a cash basis of accounting before final statements are prepared under general accepted accounting principle. E. None

8. 550
B. (WA)

9. What type of activity is the following “sold $ 120,000 worth of product?

A. Operating activities
B. Financial activities
C. Investing activities
D. Non cash transaction (WA)
E. None

10. If the single amount of $1,400 is to be received in 2 years and discount at 12% its present value? Present value $1 0.797
Future value $1 1,254
Present value annuity 1.690
Future value annuity 2,120

A. $502
B. 312
C. 676
D. 331 (WA)
E. None
11. What is amount of working capital?
Account payable 31,000
Accounts Receivable 57,000
Intangible asset50,000
Long-Term Investment80,000
Long Liabilities 100,000
Market Scarcity 40,000
Notes payable (Short-term) 28,000
Land build and equipment670,000
Prepaid expenses 1,000

A. 123,000 (WA)
B. 151,000
C. 203,000
D. 53,000
E. None

12. Company A current liability equal 500,000, working capital 120,000. Company B same amount of working capital, but total current liability of 30,000. The company with the better working capital position is? A. They both has exact the same working capital

B. Company B
C. Company A
D. Don’t determined with the information given
E. None

13. Company used Strait-Line depreciation for an item that cost 12,000 had a salvage value of 2,000 and a 5 year useful life After depreciating the assets for 3 complete years, the salvage value was reduced to 1,200 and its total useful life was increased from 5 years to 6 years. Determine the amount of depreciation to be changed against the machine during each of the remaining years of its useful life.

A 1,000
B. 1,800
C. 1,467 (WA)
D. 1,600 E. 2,160

16. Obsolescence
A. Occurs when as asset is at the end of its useful life
B. Refers to a condition where plant asset is no longer useful in producing and services. C. Refers to a condition where the capacity of a company’s plant assets is too small to meet the company’s productive demand. (WA) D. Occurs when as assets salvage value is...
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