Accountancy Test Questions

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  • Published : April 18, 2013
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1.
The accounting statements that a firm is required to file include all but one of these. A) Balance Sheet
B) Statement of Accounts Receivable
C) Income Statement
D) Statement of Cash Flows
Points Earned:| 1.0/1.0| |
Correct Answer(s):| B|

2.
The _______________ shows the firm's operating results over a period of time. A) Income Statement
B) Statement of Cash Flows
C) Balance Sheet
D) None of the above
Points Earned:| 1.0/1.0| |
Correct Answer(s):| A|

3.
All of the following except one are tax-deductible expenses. A) interest expense
B) depreciation
C) common stock dividends
D) income taxes
Points Earned:| 0.0/1.0| |
Correct Answer(s):| C|

4.
All of the following are non-operating expenses except _____________. A) interest expense
B) cost of goods sold
C) preferred stock dividends
D) taxes
Points Earned:| 0.0/1.0| |
Correct Answer(s):| B|

5.
Bondholders receive _____________ from the business firm.
A) preferred dividend payments
B) common stock payments
C) interest payments
D) royalties
Points Earned:| 0.0/1.0| |
Correct Answer(s):| C|

6.
The ratio of net income to common shares outstanding is called ______________. A) price/earnings ratio
B) earnings per share
C) dividends per share
D) none of the above
Points Earned:| 0.0/1.0| |
Correct Answer(s):| B|

7.
Usually, firms with high price/earnings ratios are ____________ firms. A) growth
B) declining
C) mature
D) none of the above
Points Earned:| 1.0/1.0| |
Correct Answer(s):| A|

8.
One of the limitations of the ____________ is that it is based on historical costs. A) income statement
B) statement of cash flows
C) balance sheet
D) none of the above
Points Earned:| 0.0/1.0| |
Correct Answer(s):| C|

9.
A source of funds is a:
A) decrease in a current asset
B) decrease in a current liability
C) increase in a current liability
D) a and c above
Points Earned:| 0.0/1.0| |
Correct Answer(s):| D|

10.
Short-term financing for a business firm includes:
A) bonds
B) accounts payable
C) stockholder's equity
D) mortgages
Points Earned:| 1.0/1.0| |
Correct Answer(s):| B|

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Submitted by DROUILLARD, RODNEY (Rodney.Drouillard001) on 1/14/2013 8:05:25 PM

Points Awarded| 40.00|
Points Missed| 60.00|
Percentage| 40.0%|

1.
How many of the following items decrease cash flow in the Statement of Cash flows? • Increase in accounts receivable
• Increase in notes payable
• Depreciation expense
• Increase in investments
• Decrease in accounts payable
• Decrease in prepaid expenses
• Dividend payment
• Increase in accrued expenses
A) 2 of these items decrease cash flow
B) 3 of these items decrease cash flow
Feedback:
incorrect

C) 4 of these items decrease cash flow
D) 5 of these items decrease cash flow
Points Earned:| 0.0/10.0| |
Correct Answer(s):| C|

2.
Which of the following is not one of the three basic financial statements? A) Income Statement
B) Statement of Retained Earnings
C) Statement of Cash Flows
Feedback:
incorrect

D) Balance Sheet
Points Earned:| 0.0/10.0| |
Correct Answer(s):| B|

3.
Which factor(s) can cause an increase in the firm's P/E ratio? A) Falling earnings per share
B) When the economy is entering recession
C) Increasing risk
Feedback:
incorrect

D) Increasing assets
Points Earned:| 0.0/10.0| |
Correct Answer(s):| A|

4.
Increasing interest expense will have what effect on EBIT?
A) Increase it
B) Decrease it
C) No effect
Feedback:
correct

D) Not enough information to tell
Points Earned:| 10.0/10.0| |
Correct Answer(s):| C|

5.
Preferred stock dividends are paid out before income taxes.
A) True
B) False

Feedback:
Correct Feedback:
correct
Incorrect Feedback:
incorrect
Points Earned:| 10.0/10.0| |
Correct Answer(s):| False|

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