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WorksheetsUnit 30
Total questions: 60
Worksheet time: 2hrs 0mins
The process of providing financial information to external decision makers is referred to as: (Unit 30- klo1-2b)
Public accounting.
Government accounting.
Financial accounting.
Managerial accounting.
The primary objective of financial reporting is to provide information: (Unit 30- klo1-2b)
About a firm's financing and investing activities.
About a firm's economic resources and obligations.
About a firm's product lines.
Useful in predicting cash flows.
The documents that set forth fundamental concepts on which financial accounting and reporting standards will be based are: (Unit 30- klo1-2b)
Statements of Financial Accounting Standards.
Statements of Financial Accounting Concepts.
Accounting Principles Board Opinions.
All of the above.
In general, revenue is recognized when the earnings process is virtually complete and: (Unit 30- klo1-2b)
Collection of the sales price is reasonably assured.
A purchase order is received.
Cash is collected.
Production is completed.
__________ of the profitability of the firm over a period of time such as a year. (Unit 30- klo1-2b)
The balance sheet is a summary
The income statement is a summary
The statement of cash flows is a summary
The audit report is a summary
A measure of profitability is the (Unit 30- klo1-2b)
current ratio.
debt to total assets ratio.
return on assets ratio.
working capital.
Which of the following is NOT a benefit of excellent customer service? (Unit 30- klo2-1)
Work is less fulfilling.
Businesses with truly exceptional customer service can achieve a unique competitive edge.
Customer service providers feel positive about their roles in creating positive exchanges with customers.
Companies earn a more positive reputation.
Why is customer service mandatory? (Unit 30- klo2-1)
Customer service is mandatory as required by federal law.
Customer service is mandatory because without it a company will lose customers.
Customer service is mandatory because state law requires it.
Customer service is mandatory because CEOs like to spend money on it.
An internal control system is designed to do all but which of the following? (Unit 30- klo2-4)
Promote operational efficiency.
Safeguard assets.
Encourage adherence to company policies.
Assure the promotion of the most qualified employees.
Trial Balance refers to_(KLO1-2.b)
List of all debit and credit balances
Total of debit and credit balances prepared as on specific date
List of All Losses and Gains items
List of All assets and Liabilities
Rules to be followed by every employee like attendance, dress code………(KLO1-1)
Competition Law
Code of practice
Trade-related legislation
Consumer protection legislation
Cash Sales transaction is an example of (KLO1-2.a)
Cash receipts journal
Cash payments journal
Purchases Journal
Sales journal
Journal entry of goods sold on credit to Rahim will be(KLO1-2.a)
Debit sales a/c, Credit Purchase a/c
Debit Rahim a/c, Credit Sales a/c/
Debit Rahim a/c, Credit Sales return a/c
Debit Sales a/c, Credit Rahim a/c
Journal entry of goods purchased on credit for 500 SAR from Javed is(KLO 1-2.a)
Debit Javed a/c, credit Purchase a/c
Debit cash a/c, Credit Purchase a/c
Debit Purchase a/c, Credit Javed a/c
Debit Sales a/c, credit Javed a/c
Petty expenses incurred 50 SAR for postage, is journalized as : (KLO1-2.c)
Petty expenses a/c debited, cash a/c credited
Cash a/c debited, Postage a/c credited
Cash a/c debited, Petty expenses a/c credited.
Petty expenses a/c, postage a/c credited
Documentation for banking means(KLO1- 3)
Account opening
Issue of cheque book
Loan
Keeping all records of customers along with their signatures
Cash Journal is prepared for(KLO 1-2.a)
Cash receipts
Cash Payments
Cash Voucher
Recording for All entries of Cash
Cash is part of(KLO1-2.a)
Asset
Liability
Expense
Income
Trial Balance is arithmetical accuracy of (KLO1-2.b)
Financial Statement
Books of Accounts
Ledger
Journal
In trial Balance total of debit should be equal to _(KLO1-2.b)
Credit
Asset
Liability
Revenue
Balance Sheet is statement prepared(KLO1-2.b)
As on specific date/month/year
For the year ending
Quarterly
Annually
A small amount of money used to pay small expenses is called: (KLO 1-2.c)
Bank reconciliation
Cash balance
Petty Cash
Trial Balance
Any company operates, must follow Customer protection legislation which (KLO2-1a)
Protects customers from any fraud
Ensures to provide customers with the best product of best price
Ensures not to cause pollution in the environment
Both A&B
Cash Flow states (KLO1-2.a)
Cash Flow from Operating Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities
All of these
Which of the following belongs to codes of practice? (KLO1-1)
Guidelines for fair dealing between you and your customers
Rules for preventing monopoly in the market
Rules for facilitating import and export in business
Attendance, dress code and respecting colleagues
Which of the following statements is to be prepared after trial balance is made? (KLO2-2)
Balance sheet
Income statement
Cash flow statement
Owner’s Equity Statement
These processes involve ensuring that customers are satisfied with the company’s (KLO2-1) products
Accounting processes
Customer service processes
Financial control processes
Debt control processes
These processes start with receiving money from customers and end with depositing money in bank (KLO2-2)
Accounting processes
Customer service processes
Financial control processes
Debt control processes
These processes involve auditing the records after being prepared by accountants. (KLO2-2)
Accounting processes
Customer service processes
Financial control processes
Debt control processes
These processes start with reminding the customer to pay his debt and finish by writing off the debt if it’s impossible to be collected. (KLO2-2)
Accounting processes
Customer service processes
Financial control processes
Debt control processes
Working Capital means _ (KLO1-2.b)
Startup expenses for a business
Current Asset minus Current Liabilities
Important Capital for business
Current Liabilities minus Current Assets
Purchase Book is collection of_ (KLO1-2.b)
Debtors
Creditors
Company clients
Partners
Journal entry of goods sold on credit to Fatima will be (KLO1-2.a)
Debit sales a/c, Credit Purchase a/c
Debit Fatima a/c, Credit Sales a/c/
Debit Fatima a/c, Credit Sales return a/c
Debit Sales a/c, Credit Fatima a/c
Journal entry of goods purchased on credit for 500 SAR from Javed is (KLO1-2.a)
Debit Javed a/c, credit Purchase a/c
Debit cash a/c, Credit Purchase a/c
Debit Purchase a/c, Credit Javed a/c
Debit Sales a/c, credit Javed a/c
Principle of double entry system is (KLO1-2.a)
One account is debited, same account is credited
One account is debited with a particular amount, another account is credited with different amount.
One account is debited, and two accounts are credited with different amount.
One or more account(s) is/are debited , and another account or more than one account isare credited with same amount.
Petty expenses incurred 50 SAR for postage, its journal entry is (KLO1-2.c)
Petty expenses a/c debited, cash a/c credited
Cash a/c debited, Postage a/c credited
Cash a/c debited, Petty expenses a/c credited.
Petty expenses a/c, postage a/c credited
Which of the following statements is true about Debt? (Unit 30 Klo2-5)
Debt is the amount of money you have in your checking account.
Debt is the amount of money you have borrowed from a person or a business.
Debt is the ability to borrow money.
Debt is the amount of money you have in a savings account.
Even if an expense, has not been paid yet, we must record it when we incur it, this concept is named as
Prudence
Accruals
Consistency
cash accounting
What is the formula to calculate the Owners’ Equity using the accounting equation?
Assets + Liabilities = Owners Equity
Assets – Liabilities = Owners Equity
Liabilities + Assets = Owners Equity
Liabilities – Assets = Owners Equity
What account balance will appear in profit/loss statement?
Payable Balance
Salaries, electricity and rent expenses
Receivable balance
Withdraw balance
Money which is owed to a company by a customer for products and services provided on credit, is called:
Accounts Payable
Accounts Receivable
Special Journal is used to record sales of merchandise for cash, is called?
Purchase journal
Cash receipt journal
Sales Journal
Cash Disbursement Journal
Net profit =?
Cost of goods – Net profit
Sales revenue – Cost of goods
Gross Profit – expenses
Payment may include those made by:
Cash
Credit
Credit / Debit cards
All of the above
What is the ledger?
Postings from Profit & Loss Account
Postings from Balance Sheet
Postings from Journal Entries
Postings from Trial Balance
What is an investment activity?
Sales of goods
Purchase of land
Selling of land
Bank loan
ROI means:
Refund of Investment
Return on Investment
Return on Information
Rerun of Innovation
What is 50% expressed as a decimal?
0.5
0.05
5
50
The payment of rent for this month causes a decrease in cash and which of the following?
A credit to Rent Expense
A decrease in Rent Expense
Both (b) and (c)
An increase in Rent Expense
Accounts Receivable & Inventory are the examples of:
Liquid assets
Current assets
Fixed assets
Capital assets
Cash is a:
Current liability
Long-term liability
Current asset
Fixed asset
Which one is not an example of fixed asset?
Furniture
Bank
Building
Equipment
The business uses this financial statement to measure the performance of the business
Balance sheet
Income statement
Cash statement
Cash flow statement
Which account increases equity?
Expenses
Withdrawals
Treasury stock
Revenues
A creditor is someone who:
You owe money to
Owes you money
Paid you cash for purchases
You paid cash to for purchases
The chart of accounts is a
List of checks and check numbers
List of Customers and customer numbers
List of inventory items and item numbers
List of accounts and account numbers
Which of the following is an advantage of a computerized accounting system over a manual accounting systems?
Processes inputs faster
Reduces errors
Saves time and frees employees from repetitive bookkeeping
All of the above
Which of the following is not an advantage of introducing computerised accounting systems?
Increased accuracy of entries
Time saved through speed of inputs
Costs involved in training staff to use system
Increased job satisfaction
Which one of the following is a liability?
An overdrawn balance on the firm’s bank account
Money owned by the firm by its debtors
Cash in the firm’s safe
A factory owned by the firm
Which of the following is correct?
When assets increase, are credited
When assets increase, are debited and credited
When assets increase, are not entered into the books
When assets increase, are debited
