Accounting Quizz

Which of the following activities would not be classified under cash flow from operating activities?

• Cash Received from customers

• Cash paid for Inventory

• Purchase of Equipment

• Payment of wages to employees

Which of the following is not a component of the P & L Statement.

• Revenue

• Liabilities

• COGS

• Net Profit

An increase in Account Receivables indicates

• Inflow of cash

• Outflow of cash

• No impact on cash

• None of the above

Depreciation will be categorized under which type of activity.

• Operating

• Investing

• Financing

• None of the above

An increase in which of the following items will not impact the equity section of the balance sheet?

• Retained earnings

• Capital Stock

• Accumulated Depreciation

• Additional paid in capital

Which of the following would cause a trial balance to be out of balance?

• A transaction recorded with incorrect dates

• A transaction posted to the wrong account but in the correct

• An entry that has only been recorded in the debit column

• A journal entry that is recorded twice

Under which matching principle, which of the following expenses would be recognized in January?

• An invoice for services rendered in January, paid in February

• A payment for supplies purchased in December but used in January

• Prepaid insurance for the next 12 months

• None of the above

Which of the following transactions would decrease cash flows from financing activities?

• Repayment of long term debt

• Sale of equipment

• Payment of interest on debt

• None of the above

If sales are 200,000, the cost of goods sold is 80,000, & operating expenses are 50,000, what is the net income?

• 70,000

• 120,000

• 150,000

• 200,000

Which of the following is an example of a current liability?

• Mortgage payable

• Account Payable

• Equipment

• Accumulated Depreciation