WorksheetsADM Summer 25-Quiz 1
Total questions: 36
Worksheet time: 1hrs 12mins
Name
Class
Date
1.
Which of the following financial statements is NOT typically included in a set of General Purpose Financial Reports
a)
Statement of Cash Flows
b)
Income Statement
c)
Balance Sheet
d)
Statement of Budget Variance
2.
What does "FTSE" stand for in the context of financial markets?
a)
Financial Tracking & Stock Exchange
b)
Firm Trading Securities Exchange
c)
Financial Times Stock Exchange
d)
Foreign Trade and Stock Enterprise
3.
What is the meaning of "stock" in a share market table?
a)
The amount of shares traded during a specific period
b)
The name of the company whose shares are being traded
c)
The price at which a share is traded
d)
The value of the company's assets
4.
What does "turnover" mean in a share market table?
a)
The number of shares traded during a specific period
b)
The total value of shares traded during a specific period
c)
The difference between the opening and closing prices of a share
d)
The total number of shareholders in a company
5.
What does "p/e ratio" mean in a share market table?
a)
The ratio of the company's net income to the number of outstanding shares
b)
The ratio of the company's share price to its earnings
c)
The ratio of the company's debt to equity
d)
The ratio of the company's assets to liabilities
6.
What is the significance of "52 weeks high and low" in a share market table?
a)
It indicates the highest and lowest prices at which a share has traded in the past year
b)
It indicates the highest and lowest number of shares traded in the past year
c)
It indicates the highest and lowest earnings of the company in the past year
d)
It indicates the highest and lowest dividends paid out by the company in the past year
7.
What is the role of a management accountant in a business?
a)
Conducting independent audits of financial statements
b)
Providing tax planning and compliance advice
c)
Developing and implementing financial strategies to achieve business goals
d)
Analyzing and monitoring business costs
8.
What is the purpose of an audit conducted by an auditor?
a)
To provide tax planning and compliance advice
b)
To develop financial strategies for the business
c)
To assess compliance with policies and procedures
d)
To analyze and monitor business costs
9.
What is the main characteristic of a speculative share?
a)
Low potential for high returns
b)
High potential for high returns
c)
Low risk
d)
High liquidity
10.
Which of the following financial alternatives is considered the riskiest?
a)
Speculative shares
b)
Dot.com company shares
c)
Fixed deposits
d)
Blue chip company shares
11.
What is a debenture?
a)
A type of share that is issued by a company to its shareholders
b)
A type of loan that is issued by a company to its creditors
c)
A type of bond that is issued by a company to its investors
d)
A type of investment that is issued by a company to its employees
12.
What is a preference share?
a)
A type of share that has priority over other shares in terms of dividends and liquidation
b)
A type of share that does not have any voting rights
c)
A type of share that has the same rights as other shares in terms of dividends and voting
d)
A type of share that is issued to preferred investors
13.
What is a proprietary company or private company?
a)
A company that is owned by the public
b)
A company that is owned by a government agency
c)
A company that is owned by a small group of people
d)
A company that is owned by a large group of people
14.
What is the primary function of accounting?
a)
To calculate taxes owed by a business
b)
To create marketing strategies for a business
c)
To provide financial information about a business to stakeholders make decision
d)
To track inventory levels
15.
What is the process of accounting?
a)
Analyzing financial statements and making investment decisions
b)
Recording, classifying, and summarizing financial transactions into financial statements
c)
identifying, measuring, recording and communicating the economic transactions and events of a business operation
d)
None of the above
16.
The All Ordinaries index is comprised of the share prices which of the following?
a)
The top 200 companies listed on the ASX
b)
The top 500 companies listed on the ASX
c)
All companies listed on the ASX
d)
None of the above
17.
Which of the following is not a factor that can influence daily share prices?
a)
Economic indicators
b)
News and events related to the company
c)
Political instability
d)
The number of employees in the company
18.
What is a disadvantage of an unlimited liability business structure?
a)
Difficulty in raising capital
b)
Personal assets may be seized to pay business debts
c)
Limited control over business decisions
d)
High cost of incorporation
19.
Which of the following business structures has limited liability?
a)
partnership
b)
Corporation
c)
Sole proprietorship
d)
All of above
20.
A business pays rent for office space. Which accounts are affected?
a)
Asset and liability
b)
Asset and expense
c)
Asset and revenue
d)
Asset and equity
21.
Which of the following is an expense account?
a)
Accounts receivable
b)
Office supplies
c)
Inventory
d)
Retained earnings
22.
Which of the following is a current liability?
a)
Mortgage payable
b)
Accounts payable
c)
Notes payable due in 3 years
d)
Common stock
23.
Which of the following accounts would be classified as a current asset?
a)
depreciation expense
b)
Account receivable
c)
Salaries payable
d)
Retained earnings
24.
Which of the following best describes a liability?
a)
A future payment the company owes
b)
A present obligation the company owes
c)
A resource the company owns or controls
d)
The residual interest in the assets of the company after deducting liabilities
25.
Which of the following best describes an expense?
a)
Something a company owes to others
b)
Something a company owns or controls that has the potential to produce future economic benefits
c)
An increase in owner's equity due to the sale of goods or services
d)
A decrease in owner's equity due to the cost of goods or services consumed in the process of generating revenue
26.
A company receives cash from a customer after the service is provided completely. How does this transaction affect the company's accounts?
a)
Increases assets and equity
b)
Increases assets, decreases liabilities
c)
Increases liabilities, decreases assets
d)
Decreases assets and liabilities
27.
On January 1, a company receives $1,000 in cash for services provided. What is the effect on the company's accounts?
a)
Assets increase by $1,000, liabilities increase by $1,000, equity increases by $1,000
b)
Assets increase by $1,000, liabilities increase by $1,000, equity remains unchanged
c)
Assets increase by $1,000, liabilities remain unchanged, equity increases by $1,000
d)
Assets increase by $1,000, liabilities remain unchanged, equity remains unchanged
28.
A company purchases equipment on credit. How does this transaction affect the company's accounts?
a)
Increases assets, increases liabilities
b)
Increases assets, decreases liabilities
c)
Decreases assets, increases liabilities
d)
Decreases assets, decreases liabilities
29.
Which of the following is true regarding franchise royalties?
a)
Franchise royalties are paid by the franchisor to the franchisee.
b)
Franchise royalties are paid by the franchisee to the franchisor.
c)
Franchise royalties are paid by the franchisee to a third party.
d)
Franchise royalties are not typically part of a franchise agreement.
30.
The accounting Assumption/ principle that requires that a business’s financial statements report enough information for users to make informed decisions is called:
a)
Historical Cost
b)
Full disclosure
c)
Monetary measurement
d)
Going concern
31.
The accounting assumption/ principles that requires that financial information be reported in a currency that is stable over time is called:
a)
Accounting period
b)
Monetary measurement
c)
Going concern
d)
Accounting entity
32.
Which of the following is not an activity that appears in the activities section of the cash flow statement?
a)
Operating activities
b)
Investing activities
c)
Financing activities
d)
Adjusting activities
33.
Which of the following would be classified as an investing activity in the cash flow statement?
a)
Payment of dividends to shareholders
b)
Purchase of inventoryt
c)
Issuance of long-term debt
d)
Sale of a company’s investment in another business
34.
Which of the following would be classified as an operating activity in the cash flow statement?
a)
Sale of a long-term investment
b)
Payment of dividends to shareholders
c)
Purchase of new office furniture and equipment
d)
Collection of cash from customers
35.
On January 1, a business owner withdraws $500 in cash for personal use. What is the effect on the company's accounts?
a)
Assets decrease by $500, liabilities decrease by $500, equity remains unchanged
b)
Assets decrease by $500, liabilities remain unchanged, equity decreases by $500
c)
Assets decrease by $500, liabilities increase by $500, equity remains unchanged
d)
Assets remain unchanged, liabilities decrease by $500, equity decreases by $500
36.
A company purchases a delivery truck for $20,000, partially with $10,000 in cash and the remaining $10,000 on credit. The transaction affects which accounts and what is the effect?
a)
Assets increase by $20,000, liabilities decrease by $10,000, cash decreases by $10,000
b)
Assets increase by $20,000, liabilities increase by $10,000, cash decreases by $10,000
c)
Assets increase by $10,000, liabilities decrease by $10,000, cash decreases by $10,000
d)
Assets increase by $10,000, liabilities increase by $10,000, cash decreases by $20,000
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