finance

1. Which of the following questions properly represents a derivation of the fundamental equation?

• Assets= Liabilities + owner’s equity

• • Long Term Assets= owner’s equity

• • Cash = Current assets

• • Assets – liabilities = Cash

0. Which of the following would not be included on a balance sheet?

• • Accounts payable

• •  Machinery

• Net Income

• Cash
  

On a statement of cash flows, which of the following types of activities would be disclosed in a separate section?

• • Operating activities

• • Financing activities

• • Investing activities

• All of the above

Which of the following is likely to have the reported amounts on the balance sheet being closer to their current value?

• A building owned by the company

• Cash

• • Equity

• • All of the above

he changes in property, plant and equipment will be reported in which section of the statement of cash flows?

• • Cash provided/used in Financial acitivities

• • Cash provided/used in Operating activities

• • Cash provided/used in Investing activities

• None of the above

Which item woulb be inclueded in the calcularion of Gross profit:

• Amounts charged by raw material supplier

• • salaries of the board of directors

• • Rent and council tax on the office buildings

• • Interest charges on a long term loan

0. Operating expenses would not included wich one of ..

• Dividents

• • Depreciation & amortization

• • Research and development

• • Administrative expenses

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

• Cost

• • Current mkt value

• • Expected selling price

• • It dependes how you wake up that morning

0. Which one of the following statements is wrong?

• • The return of assets provides a measure of the porfitability of the ...

• • The retun on assets can be calcualted as the product between..

• • The Net profit Margin of the company...

• The Net Profit Margin of the company tells you how much money is generated

  using the amount of available asseets. It is a way of knoweing the volume of sales the company has.

Which one of the following statements is wrong?

• • balance Sheet is the same as the financial statement

• • The income statements is the same as the profit & loss statement

• • The Cash flow statement is the same as the assets liquidity statement

• The statement of equity is the same as the statement of retained earnings.