Quiz 1-SCI

What kind of financial statement presents the results of operations of the business for one accounting period?

• Statement of Financial Position

• Statement of Comprehensive Income

• Statement of Cash Flows

• Statement of Changes in Equity

Which format of Statement of Comprehensive Income is used in service business?

• Report Form

• Account Form

• Single-Step

• Multiple-Step

Which among the following is not an element of the Statement of Comprehensive Income?

• sales

• Income

• revenue

• expense

Which element of the SCI increases the assets or decreases the liabilities leading to increase in equity resulting from the operations of the business?

• Gross Profit

• Income

• Expense

• Sales

What is the main source of income of a service business?

• sale of goods

• sale of obsolete equipments

• interest on deposits

• rendering of service

When do we recognize income?

• When goods have been received

• When cash has been received

• When services has been rendered

• When services has been paid

What principle supports the recognition of expenses?

• Matching Principle

• Accrual Principle

• Principle of Conservatism

• Cost Principle

Which among the following is an example of sales revenue?

• Rental Income

• Office Supplies Sales

• Delivery Income

• Cost of Sales

Which among the following contra-asset accounts are deducted from sales due to customers' prompt payment?

• Sales Returns and Allowances

• Purchase Returns and Allowances

• Purchase Discounts

• Sales Discount

What do we call the cost of bringing the purchased goods to the premises of the company, the buyer/purchaser being the one who pays the cost of freight?

• Freight-in

• Freight-out

• Delivery Income

• none of the above