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3.4 Final Accounts

Total questions: 15

Worksheet time: 11mins

Name
Class
Date
1.

Governments are interested in financial statements to determine taxes.

a)

True

b)

False

2.

Which of these is NOT an Internal stakeholder.

a)

Management

b)

Employees

c)

Shareholders and owners

d)

Financiers

3.

Which accountants' code of ethical practice is breached when an accountant shows conflict of interest in their work?

a)

Profits

b)

Objectivity

c)

Professional competence and due care

d)

Confidentiality

4.

Which accounting standard is breached when an accountant tells his close friend the company profits?

a)

Confidentiality

b)

Integrity

c)

Professional competence and due care

d)

ACCA

5.

What is the main purpose of the profit and loss account?

a)

To calculate the company's assets.

b)

To calculate the net profit or loss of the company.

c)

To show how much has been invested in the company.

d)

To show the company's liabilities.

6.

Which of the following are part of the Profit and Loss Account.

a)

Balance Sheet

b)

The trading account

c)

Profit and loss account

d)

Appropriation account

7.

Which of the following are ways to increase gross profit.

a)

Raise the price of its products

b)

Negotiate lower prices from suppliers

c)

Give Leonardo DiCaprio 500 000$.

d)

Increase promotion

8.

The appropriation account represents:

a)

The difference between sales revenue and the cost of goods sold.

b)

The total value of the company to the shareholders.

c)

The profit before interest and taxes.

d)

The distribution of profit between shareholders and retained profit.

9.

The balance sheet shows:

a)

How to balance the accounts of the company.

b)

The financial position of a company at a specific point in time.

c)

The profit generated for the year.

d)

The total expenses of the company.

10.

Which of the following are intangible assets?

a)

A patent

b)

The Apple logo

c)

A new computer

d)

A mortgage loan

11.

Which of the following best describes a capital expenditure?

a)

money spent to acquire items in a business that will last more than a year and may be used over and over again. (Fixed Assets)

b)

money spent on the day-to-day running of the business (ex. raw materials)

c)

when a business sells off its unwanted or unused assets

12.

Which of the following are effective methods of increasing net profit.

a)

Negotiating for lower rent or relocating to a cheaper location

b)

Streamlining operations and reducing the number of clerks.

c)

Reduce office expenses like legal fees, stationary and telephone useage.

d)

Increase Gross profit

13.

Dividends are:

a)

A part of the firm's profits paid to shareholders.

b)

Payments that appear in the trading account

c)

A part of the firm's profits paid to the CEO

d)

A part of the firm's profits paid to the government

14.

Fixed assets do not include:

a)

Land

b)

Machinery

c)

Cash

d)

Buildings

15.

What is the formula for The Cost of Goods Sold (COGS)?

a)

Opening stock + Purchases – closing stock

b)

Opening stock - Purchases + closing stock

c)

(Opening stock + closing stock) / 2

d)

(Purchases x opening stock) - closing stock