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introduction to financial reporting

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

______ is concerned with the production of financial statements for external users.

a)

Management reporting

b)

Environmental reporting

c)

Financial accounting

2.

Companies have --------?

a)

Unlimited liability

b)

Limited liability

3.

A present obligation of an entity to transfer an economic resource as a result of past events is ______

a)

Asset

b)

Liability

c)

Income

d)

Equity

4.

Pick the Non-current asset.

a)

Cash

b)

Inventory

c)

Receivable

d)

Building

5.

Equity = ?

a)

Asset - Liability

b)

Liability - Asset

c)

Income - Expense

d)

Expense + Income

6.

which statement contains both income and expenses?

a)

statement of financial position

b)

statement of profit or loss

c)

statement of cash flow

d)

statement of changes in equity

7.

A present economic resource controlled by the entity as a result of past events is _______

a)

Asset

b)

Liability

c)

Equity

d)

Expense

8.

Which one is not a current liability?

a)

Trade payables

b)

Overdraft

c)

Long term loan

d)

Short term loan

9.

Which statement contains all of the following - asset, liability, and equity?

a)

statement of financial position

b)

statement of profit or loss

c)

statement of cash flow

d)

statement of changes in equity

10.

How to record credit purchase?

a)

Dr Purchase

Cr Cash

b)

Dr Cash

Cr purchase

c)

Dr Purchase

Cr payables

d)

Dr Payables

Cr purchase