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ACC 110_First Assessment Quiz

Total questions: 40

Worksheet time: 21mins

Name
Class
Date
1.

The primary responsibility for the preparation and presentation of the financial statements of an entity is reposed in the

a)

Management of the entity

b)

Internal auditor

c)

External auditor

d)

Controller

2.
What is the objetive of Financial Statement?
4 lines
3.

What is the purpose of preparing the Statement of Financial Performance?

a)

inform stakeholders the profitability of business

b)

inform stakeholders the income and expenses of business

c)

inform stakeholders the nature of business

d)

inform stakeholders the size of business

4.

What is the purpose of the Statement of Financial Position?

a)

inform stakeholders the assets and liabilities of business

b)

provides information on how resources are obtained and used and the claim by the owner on the net assets of the business at a point in time.

c)

provides information on how resources are obtained and used in the business at a point in time.

d)

inform stakeholders the owner's equity of business

5.

Which of the following are Financial Statements for business?

a)

Trial Balance Account

b)

Ledger

c)

Income Statement

d)

Balance Sheet

6.

The users of accounting information are...

a)

Internal users

b)

External users

c)

Internal & External users

7.

Which one is the internal user?

a)

Potential investor

b)

Management of a company

c)

Creditor

8.

Also called as Balance Sheet.

a)

Statement of Financial Position

b)

Financial Statements

c)

Statement of Balance

d)

Statement of Income

9.

Also known as the "Long-term Assets"

a)

Non-current Assets

b)

Current Assets

c)

Non-current liabilities

d)

Current Liabilities

10.

Following are accounts under _________________.

•Cash and cash equivalents

•Trade and other receivables

•Inventories

•Biological assets

•Investments

•Financial assets

•Investment property

•Property, plant, and equipment

a)

Assets

b)

Liabilities

c)

Owner's Equity

11.

Retained Earning can be found under _____________.

a)

Assets

b)

Liabilities

c)

Owner's Equity

12.

Cash in Bank is classified as

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

13.

Account Receivable is classified as

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

14.

Accumulated Depreciation

a)

Current Assets

b)

Non-Current Assets

c)

Contra Asset Account

15.

Allowance for Bad Debts

a)

Current Assets

b)

Non-Current Assets

c)

Contra Asset Accounts

16.

Furniture and Fixtures

a)

Current Assets

b)

Non-Current Assets

17.

Select three examples of an asset?

a)
b)
c)
d)
18.

Current liabilities are short-term debts. The money owed must be paid back within one year.

a)

True

b)

False

19.

Long-term liabilities are debts paid back over a long period of time.

a)

True

b)

False

20.

is the ability of the entity to meet currently maturing obligations.

(a)  

21.

short-term highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of changes in value

(a)  

22.

an investment normally qualifies as a cash equivalent only when it has a short maturity of __________ from the date of acquisition

a)

three months or less

b)

three months

c)

three months or more

d)

one year

23.

Equity securities cannot qualify as cash equivalent because shares do not have a date of maturity

a)

TRUE

b)

FALSE

c)

I DON'T KNOW

24.

When the normal operating cycle is not clearly identifiable, the duration is assumed to be (a)   .

25.

is an identifiable nonmonetary asset without physical substance

a)

intangible assets

b)

tangible assets

c)

PPE

d)

Investment

26.

They are probable future sacrifices of economic benefits which arise as the result of past transactions or events.

a)

Accounting

b)

Assets

c)

Liabilities

d)

Owner's Equity

27.

It refers to something that a business owe.

a)

Accounting

b)

Assets

c)

Liabilities

d)

Owner's Equity

28.

It refers to the owner’s claim to the assets of the business

a)

Accounting

b)

Assets

c)

Liabilities

d)

Owner's Equity

29.

working capital is the excess of assets over current liabilities

a)

TRUE

b)

FALSE

30.

Bank Overdraft

a)

Asset

b)

Liabilities

c)

Owner's Equity

d)

Income

e)

Expense

31.

Prepaid Expense

a)

Asset

b)

Liabilities

c)

Owner's Equity

d)

Income

e)

Expense

32.

Accrued Expense

a)

Asset

b)

Liabilities

c)

Owner's Equity

d)

Income

e)

Expense

33.

Retained Earnings

a)

Asset

b)

Liabilities

c)

Owner's Equity

d)

Income

e)

Expense

34.

Which should be classified as a noncurrent asset?

a)

Plant expansion fund

b)

Prepaid rent

c)

Supplies

d)

Goods in process

35.

Claim against shipper of goods lost in transit

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

36.

Cash Dividend Payable

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

37.

Short-term borrowings

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

38.

Income tax payable

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

39.

Financial Assets at FV through P and L

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability

40.

Financial Assets at FV through P and L

a)

Current Asset

b)

Current Liability

c)

Noncurrent Asset

d)

Noncurrent Liability