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Understanding Financial Statements

Authored by Edmund Ong

Business

Professional Development

Used 13+ times

Understanding Financial Statements
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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is most likely to be a non-current asset?

Tax refundable

Plant and Equipment

Cash and Cash Equivalents

Share Capital

Answer explanation

Plant and Equipment (e.g. machines, office furniture) typically last more than a year.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the correct balance sheet formula?

Assets = Liabilities x Equity

Assets = Liabilities - Equity

Assets + Liabilities = Equity

Assets = Liabilities + Equity

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is not one of the key financial statements?

Balance Sheet

Income Statement

Director's Statement

Cash Flow Statement

4.

MULTIPLE CHOICE QUESTION

20 sec • 1 pt

Which of the following is NOT an asset?

Trade Payables

Trade Receivables

Plant and Equipment

Cash and Cash Equivalents

Answer explanation

Trade Payables are obligations of a company to pay suppliers of goods and services. It is a LIABILITY.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a liability?

Accrued Revenue

Retained Earnings

Bank Borrowings

Investment in Subsidiaries

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In which example below would the income NOT be considered revenue?

A delivery company sells a van from its fleet for S$30,000

A second-hand car dealer sells a van for S$50,000

A petrol company sells 40 litres of petrol for S$80

An electronics store sells a laptop for $2,000

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of these transactions would generate operating cash flows?

A delivery company sells one of its delivery vehicles

A construction company obtains a bank loan

A car dealer sells its office car

A furniture store sells a table

Answer explanation

The furniture store sold a table, which would what we expect is part of its primary operations, hence it generates operating cash flows.

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