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BUS245 Task Sheet 5 & 6 Assignment

Total questions: 40

Worksheet time: 28mins

Name
Class
Date
1.

The Trading and Profit/Loss Account lists a business':

a)
Assets and Expenses
b)
Owner's Equity and Revenue
c)

Revenue, cost of goods, expenses, and Profit

d)
Expenses and Net Assets
2.
Examples may include salaries, utilities, rent, insurance, and office supplies.
a)
Revenue
b)
Expense
c)
Net Income
d)
Net Loss
3.
A Net Profit occurs if:
a)
Gross Profit is greater than expenses
b)
Expenses greater than Gross Profit
c)
None of the listed choices
4.
Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.
a)
liquidity ratios
b)
efficiency ratios
c)
leverage ratios
d)
profitability ratios
5.
Financial ratios that tell how much of each dollar of sales, assets, and owner's investments resulted in net profit.
a)
liquidity ratios
b)
efficiency ratios
c)
profitability ratios
d)
leverage ratios
6.
Quick ratio=
a)
current assets - current liabilities
b)

current assets ÷ quick liabilities

c)
quick assets ÷ current liabilities
7.

What does a current ratio tell us?

a)

A higher current ratio indicates better liquidity.

b)

A lower current ratio indicates better liquidity

c)

A higher current ratio indicates what portion of assets are tied up in slow moving inventory

d)

A lowercurrent ratio indicates what portion of assets are tied up in slow moving inventory

8.

Which is not a liquid asset?

a)

Cash equivalents

b)

Notes receivable

c)

Inventories

d)

Cash substitutes

e)

NOT IN THE CHOICES

9.

Cost of goods sold divided by average inventory

a)

Inventory turnover

b)

Cost of goods sold margin

c)

Inventory margin

d)

Days sales in receivables

e)

NOT IN THE CHOICES

10.

What is balance sheet?

a)

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure.

b)

A Balance sheet is one of a company's core financial sheet that shows their profit and lossProfit and Loss

11.

Debts and financial obligations (responsibilities).

a)

Liabilities

b)

Assets

c)

Negative Net Worth

d)

Property

12.
Which of the following is considered a liability?
a)
Savings Account
b)
Mortgage
c)
Savings bond
d)
Coin Collection
13.

Which one is right?

a)

Asset = Owner's equity + Liability

b)

Asset = Owner's equity - Liability

c)

Asset + Owner's equity = Liability

d)

Asset + Owner's equity = expense

14.

The payroll responsibility of the Accounting Department included:

[select all that are CORRECT]

a)

Paying salaries and wages

b)

Completing statutory deduction forms

c)

Withholding statutory contributions from employee's Gross Pay

d)

Remitting statutory contributions to the relevant entities

e)

Issuing employees their Net Pay and Pay Slips

15.

If the company is late in submitting Statutory contributions and ABST payments, penalties will be applied

a)

True

b)

False

c)

Not sure

16.

The ABST which is due and payable was originally __________ to customer invoices in previous transactions

a)
subtracted
b)
added
c)
multiplied
d)
divided
17.

Why are accurate accounting records important to a business?

a)

They prevent any financial losses.

b)

They show the business how it is doing.

c)

They increase the return on investments.

d)

They give the business an image of success.

18.

For an accounting system to be useful to the business, the accounting information it contains must be

a)

accurate and up to date.

b)

approved by the chief executive officer.

c)

posted by an accountant.

d)

recorded using the accrual method.

19.

Cheques, receipts, invoices, and purchase orders are examples of

a)

financial statements.

b)

department ledgers.

c)

source documents.

d)

accounting standards.

20.

When entering a journal entry, what happens if the debits don't equal the credits?

a)

QuickBooks sends the difference to an adjustment account.

b)

QuickBooks will not allow you to record the transaction.

c)

QuickBooks asks you what to do with the "unequal" amount.

d)

Nothing. QuickBooks records the transaction as is.

21.

What is the purpose of the Chart of Accounts?

a)

It allows accountants to view accounting records remotely.

b)

It is how you categorize financial transactions.

c)

To see a graphical chart of income and expenses.

d)

To categorize items.

22.

Which best defines a vendor?

a)

Any company to which one pays money

b)

Any entity from which one purchases goods

c)

Any entity to which one pays money

d)

Any individual to which one pays money

23.

What does Accounts Receivable keep track of?

a)

What you owe vendors

b)

How much is in your bank accounts

c)

What customers owe you

d)

Your purchase orders

24.

Which report shows how much you owe for sales tax?

a)

Sales Tax Revenue Summary

b)

1099 Detail

c)

Sales Tax Liability

d)

AP Aging

25.

What can you do in the report center?

a)

Start the client data review.

b)

Add reports to QuickBooks

c)

Run most reports in QuickBooks

d)

Delete reports in QuickBooks Multiple Reports

26.

............................ provides coverage against damage caused by fire, lightning and explosion that occur at the business premises.

a)

Life Insurance

b)

Fire insurance

c)

Medical Insurance

d)

Motor insurance

27.

What is the deadline for payment of the Statutory contributions Golden Enterprises calculated for February 2022?

a)

March 14th 2022

b)

February 14th 2022

c)

April 14th 2022

d)

There is no deadline

28.

You must back up your QuickBooks company to your flash drive file every session

a)

Yes

b)

No

29.

What part of a cover letter contains Golden Enterprises' contact information?

a)

Header

b)

Introduction

c)

Body

d)

Closing

30.

Dear Mrs. Collins, (comma)

is a proper Salutation for an open punctuation, business letter.

a)

TRUE

b)

FALSE

31.
Sincerely, 
is an example of a...
a)
Closing Line
b)
Signature Line
c)
Complimentary Closing
d)
Complimentary Line
32.

Why are there 4 spaces after a letter's complimentary closing?

a)
To make room for the letterhead
b)
To make room for the body
c)
To make room for your signature 
d)
To maker room for your address
33.

4/5/2022 is an appropriate date to use in a business letter.

a)
TRUE
b)
FALSE
34.
If you send something with the letter, you should include a(n):
a)
salutation
b)
reference initials
c)
enclosure
35.
In block format, all lines begin at the left margin.
a)
True
b)
False
36.
The date of a block format letter is always centered.
a)
True
b)
False
37.

How can Golden Enterprises increase its Net Profit % without increasing sales?

(a)  

38.

All of Golden Enterprises' debtors have paid their outstanding amounts

a)

Yes

b)

No

39.

Golden Enterprises still has outstanding payments due to at least one creditor.

a)

Yes

b)

No

40.

The company's Statutory contribution cheques include:

[select all that apply]

a)

Amounts deducted from employee gross pay

b)

Amounts contributed from Golden Enterprises' funds

c)

ABST

d)

Contributions from Mr and Mrs Gold, because they are the employers