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WorksheetsAccounting Principles and Financial Statements
Total questions: 14
Worksheet time: 12mins
Name
Class
Date
1.
Jeff's Construction, LLC bought a piece of equipment in 2001 for P 10,000. Today this piece of equipment is only worth P 2,000. Jeff would still report the equipment at its purchase price of P 10,000, less depreciation, even though its current fair market value is only P 2,000.
a)
Historical Principle
b)
Business Entity
c)
Accrual Principle
d)
Adequate Disclosure Principle
2.
A firm sells goods for P 55, 000 on 25th March 2005 and the payment is not received until 10th April 2005, the amount is due and payable to the firm on the date of sale i.e. 25th March 2005.
a)
Periodicity Principle
b)
Consistency
c)
Accrual Principle
d)
Adequate Disclosure Principle
3.
Which principle/guideline requires the company's financial statements to have footnotes containing information that is important to users of the financial statements?
a)
Historical Principle
b)
Business Entity
c)
Accrual Principle
d)
Adequate disclosure Principle
4.
The personal assets of the owner of a company will not appear on the company's balance sheet because of which principle/guideline?
a)
Historical Principle
b)
Business Entity
c)
Accrual Principle
d)
Adequate disclosure Principle
5.
All properties and services acquired by the business must be recorded at their original acquisition cost. This principle pertains to..
a)
Historical Principle
b)
Business Entity
c)
Accrual Principle
d)
Objectivity principle
6.
All business transactions that will be entered in the accounting records must be duly supported by verifiable documents. This principle pertains to..
a)
Historical Principle
b)
Business Entity
c)
Periodicity Principle
d)
Objectivity principle
7.
Providing financial accounting information about economic activities for specified time/accounting periods.. This principle pertains to..
a)
Accrual Principle
b)
Business Entity
c)
Periodicity Principle
d)
Objectivity principle
8.
It is a measurement of financial position of the company.
a)
Income Statement
b)
Balance Sheet
c)
Cash Flow Statement
d)
Adequate disclosure Principle
9.
It is a measurement of performance (shows the profit or loss) of the company.
a)
Income Statement
b)
Balance Sheet
c)
Cash Flow Statement
d)
Statement of Owner's Equity
10.
It is a measurement of changes in financial position of the company.
a)
Income Statement
b)
Balance Sheet
c)
Cash Flow Statement
d)
Statement of Owner's Equity
11.
You want to know if you have enough cash to pay the salaries of your employees. What is the financial statement that you need to check?
a)
Income Statement
b)
Balance Sheet
c)
Cash Flow Statement
d)
Statement of Owner's Equity
12.
You want to know the cost of goods sold by the business in a particular period. What is the financial statement that you need to check?
a)
Income Statement
b)
Balance Sheet
c)
Cash Flow Statement
d)
Statement of Owner's Equity
13.
You want to know the total amount of capital or owner’s equity. What is the financial statement that you need to check?
a)
Income Statement
b)
Balance Sheet
c)
Cash Flow Statement
d)
Statement of Owner's Equity
14.
You want to know how much cash came out from the business to the suppliers. What is the financial statement that you need to check?
a)
Income Statement
b)
Balance Sheet
c)
Cash Flow Statement
d)
Statement of Owner's Equity
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