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Worksheets

Financial Statements

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

What is the equation to calculate Gross profit?

a)

Sales revenue + Income - Expenses

b)

(Sales revenue - Sales returns) - Cost of sales

c)

(Sales revenue + Cost of sales) - Sales returns

d)

(Sales revenue + Sales returns) - Cost of sales

2.

What is the meaning of Gross profit?

a)

profit from providing services to customers

b)

profit from providing money to customers

c)

profit from providing goods to customers

d)

profit from providing loans to customers

3.

What is the difference between non-current assets and current assets?

a)

NCA provide benefits that are used within one financial period but CA provide benefits that last beyond one financial period

b)

NCA provide benefits that last beyond one financial period but CA provide benefits that are used within one financial period

c)

NCA are easily converted to cash but CA are not easily converted to cash easily

d)

NCA are not loans but CA are loans

4.

Operating Activities in the Income Statement consist of the following:

a)

revenue

b)

cost of good sold

c)

operating expenses

d)

interest expense

e)

income taxes

5.

Operating Income is also known as

a)

EBT

b)

EAT

c)

EBIT

d)

Revenue

6.

Which of the following are Equity

a)

Preferred stock

b)

Mortgages

c)

Paid-in-Capital

d)

Retained earnings

e)

Short-term notes

7.

You have assets totaling $10,000 and all of your debts total $13,000. What is your net worth

a)

$3

b)

$23,000

c)

$3000

d)

$-3000

8.

Depreciation expense

a)

Operating

b)

Investing

c)

Financing

d)

Supplemental

9.

A decrease in the balance of Accounts Receivable.

a)

Operating

b)

Investing

c)

Financing

d)

Supplemental

10.
Complete this statement with the best option: ‘The longer the cash-flow cycle… .’
a)
the less cash the business will need
b)
the lower will be the firm’s working capital needs
c)
the less chance there is for the business to run out of cash
d)
the more working capital and cash the business will need
11.
Cash from operating activities consist of ____
a)
Operational Net Profit
b)
Decrease in CA
c)
Increase in CL
d)
All
12.
Purchase of goodwill will appear in ____ activity?
a)
Operating
b)
Investing
c)
Both
d)
None
13.
Cash deposited into bank will result in ____ of cash
a)
Inflow
b)
Outflow
c)
No flow
d)
All
14.

Which of the following transaction is NOT a revenue?

a)

Performed a services worth RM3,000 on credit for Aliff and further services worth RM5,500 cash

b)

Purchased RM6,000 worth of drying fuel and RM3,000 worth of machinery lubricants

c)

Received subsidy of RM7,000 and interest of RM4,000

d)

Sold RM9,000 worth of grain crops for cash and a small tractor costing RM12,000 for RM20,000

15.

The owner's equity will increase when ........

i - a business obtained net profit

ii - a business incurred net loss

iii - the owner withdrew cash from the company

iv- the owner brought in machinery to use in the business

a)

i and iv

b)

ii and iii

c)

i and iii

d)

ii and iv

16.

Sun Farm bought seed and fertilizer on credit from One Nursery Sdn Bdh. What is the effect of this transaction?

a)

Increase in both asset and liability

b)

Increase in asset and decrease in liability

c)

Increase liability and decrease in asset

d)

Decrease in both asset and liability

17.

Define “Don’t put all your financial eggs into one basket”.

a)

To make fried rice

b)

Put your money in different types of investment

c)

High risk, high return

d)

Put all your money into one type of investment

18.

Which of the following may NOT provide cash inflow to the company?

a)

Payment of liabilities

b)

Collection from customers

c)

Sale of company car

d)

Payment by employee of his loan

19.

Cash= 1000, Bank = 2000, Accounts payable = 1500 and loans = 1000. What is the value of assets?

a)

3000

b)

2500

c)

1550

d)

4500

20.

Which of the following includes ONLY Current Liabilities include

a)

trademark, creditors, mortgage

b)

bank overdraft, mortgage, bank loan

c)

Short-term loan, creditors, bank overdraft.

d)

cash in hand, bank balance, short term loan