Accounting Quiz

Assets are usually reported on the balance sheet at which amount?

• Current Market Value

• Expected Selling Price

• Cost

The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?

• Separate Economic Entity

• Monetary Unit

• Cost Concept

Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?

• Conservatism

• Economic Entity

• Full Disclosure

A ratio that compares investors’ and creditors’ stake in a company.

• Debt Equity Ratio

• Dept Ratio

• Equity Ratio

Which of the following will appear as a negative amount on a statement of cash flows that was prepared using the indirect method?

• A Decrease In Inventory

• An Increase In Accounts Payable

• An Increase In Accounts Receivable