GBP - Accounting quiz 1

Which is not one of the three primary business activities?

• Financing

• Operating

• Advertising

• Investing

Internal users of financial report include all of the following except the

• CEO of Sony

• Human Resource Department at Huyndai

• Marketing Department at Braun

• Shareholders of Airbus

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

• Income Statement

• Statement of Financial Position

• Auditor report

• Statement of Cash Flows

Liabilities of a company are owed to

• Debtors

• Creditors

• Shareholders

• Underwriters

Equity can be described as

• creditor claim on total assets

• owner claim on total assets

• debtor claim on total assets

• none of the above

The primary purpose of the Statement of Cash Flows is to report

• a company's investing transactions

• a company's financing transactions

• information about cash receipts and cash payments of a company

• the net increase or decrease in cash

Which of the following is an example of a financing

activity?

• Issuing shares of common stock

• Selling goods on account

• Buying delivery equipment

• Buying inventory

7. Net income will result during a time period when

• 7. assets exceed liabilities

• 7. assets exceed revenues
     

• 7. expenses exceed revenues

• 0. revenues exceed expenses

he element of a corporation’s annual report that de- scribes the corporation’s accounting methods is/are the

• notes to the financial statements

• management discussion and analysis

• auditor’s report

• income statement

The element of the annual report that presents an opin-

ion regarding the fairness of the presentation of the financial position and results of operations is/are the

• income statement
  

• auditor report

• management discussion and analysis

• balance sheet