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Third Round | Brain of Accountants 3.0

Total questions: 25

Worksheet time: 22mins

Name
Class
Date
1.

A cost that changes with the number of units produced, but that can never be zero, is what kind of cost?

a)

Mixed Cost

b)

Fixed Cost

c)

Variable Cost

d)

Opportunity Cost

2.

How the current ratio is calculated?

a)

Current Liabilities/ Current Assets

b)

Equity/ Current Assets

c)

Current Assets/ Current Liabilities

d)

Non- current Assets/ Non-current Liabilities

3.

Which of these is a typical dividend yield for any company?

a)

0.00000003%

b)

3%

c)

100%

d)

300%

4.

Monthly fixed costs are $20,000 excluding depreciation of $5,000.

Which figure should be shown in the Receipts section of the cash budget?

a)

$20,000

b)

$25,000

c)

$15,000

d)

none of the above

5.

In May a company buys $100,000 of raw materials and pays for it in the month incurred.

In which month was the payment made?

a)

April

b)

May

c)

June

d)

Cannot tell from information given

6.

What does the abbreviation GAAP stand for?

a)

Generally Accepted Accounting Principles

b)

Generally American Accounting Principles

c)

Great American Accounting Principles

d)

Great Accepted Accounting Principles

7.

If an invoice dated September 9 and received on September 12 Shows terms of 2/10, n/30, what is the last day that a discount may be taken?

a)

September 11

b)

September 19

c)

September 22

d)

October 9

8.

If owners equity is $25,500, and assets are $37,600, liabilities are

a)

$25,500

b)

$37,600

c)

$63,100

d)

$12,100

9.

The process of transferring information from the journal to the individual general ledger accounts is called

a)

Journalizing

b)

Posting

c)

Transferring

d)

Carrying forward

10.

What is the Net Profit margin for Paul's Guitar Shop?

a)

2.15%

b)

46.5%

c)

130%

d)

13.12%

11.

Monthly fixed costs are $100,000 excluding depreciation of $20,000.

Which figure should be shown in the Payments section of the cash budget?

a)

$100,000

b)

$120,000

c)

$80,000

d)

none of the above

12.

Stelter corporation paid cash for advertising and debited Miscellaneous Expense instead of Advertising Expense when entering the transaction. The correcting entry should contain:

a)

Debit: Advertising Expense

Credit: Cash

b)

Debit: Miscellaneous Expense

Credit: Cash

c)

Debit: Cash

Credit: Advertising Expense

d)

Debit: Advertising Expense

Credit: Miscellaneous Expense

13.

Purchases from a supplier on credit is a liability.

a)

True

b)

False

14.

Which of the following is not a liability?

a)

Deposit received from customer

b)

Unearned revenue

c)

Zero interest-bearing note payable

d)

Stock dividend payable

15.

How much is the liability if the asset is worth $200,000 and the owner has $90,000 in equity?

a)

$200,000

b)

$110,000

c)

$290,000

d)

$90,000

16.

'Review of the financial statements of a business and the accounting practices that were used to produce them'

Which of the following suits the above statement?

a)

Audit

b)

Financial Management

c)

Budget

d)

Accounting

17.

Calculate the debt ratio.

a)

81%

b)

72%

c)

103%

d)

43%

18.

State the double entry: Paid cash into bank.

a)

Debit : Cash

Credit : Bank

b)

Debit: Bank

Credit: Drawings

c)

Debit: Bank

Credit: Cash

d)

Debit: Drawings

Credit: Bank

19.

State the effect on the ASSET:

Purchased equipment $3000 from Syarikat Taylornation for credit.

a)

decrease $3000

b)

increase $3000

c)

decrease $6000

d)

no effect

20.

Which document would you give to someone who still owes money?

a)

a receipt

b)

an invoice

c)

a cheque

d)

a credit note

21.

Objectives of tax policies are

a)

to raise revenue for government

b)

to regulate private sector

c)

to encourage or promote specific activities

d)

to regulate equal redistribution of income and wealth

22.

What does it mean if a business has an 'favourable' Net Profit Ratio?

a)

The business Net Profit Ratio is better than the industry average

b)

The business Net Profit Ratio is performing worse than the industry average

23.

The shirt that you bought was $20. The sales tax was 15%, what was the final price?

a)

$20

b)

$22

c)

$23

d)

$17

24.

Sales tax is ___ to the price

a)

subtracted

b)

added

c)

multiplied

d)

divided

25.

What is a COMMISSION?

a)

the money paid by the government to make sure all Australians have enough money for the basic necessities of life

b)

Payment made to those who act as an agent, or go-between, between buyers and sellers

c)

money paid by an employer to an employee on a yearly basis

d)

money paid by an employer to an employee for a period of work