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WorksheetsY10 Revision (IS, SFP)
Total questions: 59
Worksheet time: 38mins
An accounting report that is used to show revenue and expenses is the
Loss and Profit Statement
Reveune and Expenses Statement
The Profit or Loss Statement
The Income Statement
The main purpose of an Income statement is to...
calculate profit or loss
provide information in an informative manner
Profitability is....
Revenue less expenses
When a business makes a profit
a comparison of profit earned with an investment made
when revenue is higher than expenses
Profit is the reward for___
workers
banks
costumers
enterprise
The bank manager, business ___ and managers are the main users of the income statement
owners
workers
shops
community
Which one of the following appears on an income statements?
Owner's capital
Expenses
Cash at bank
Value of inventory
Revenue is $5000 and gross profit $1500, the cost of sales is ___
$6500
$5000
$3500
$1500
Gross profit is higher than profit
True
False
Revenue minus expenses equals gross profit
True
False
Depreciation is not included on the income statement
True
False
Retained profit for a company is what is left from profit after tax and dividends have been deducted
True
False
Income statements are often used by managers when making decisions
Yes
True
When expenses are greater than income?
Expense
Net income
Net loss
Net gain
If total expenses exceed total revenue, a net loss is reported.
True
False
Also called as Balance Sheet.
Statement of Financial Position
Financial Statements
Statement of Balance
Statement of Income
This is what the business owns.
Assets
Liablities
Loans
Owner's Equity
This is what the business owes.
Assets
Liabilities
Loans
Owner's Equity
Also known as the "Long-term Assets"
Non-current Assets
Current Assets
Non-current liabilities
Current Liabilities
Following are accounts under _________________.
•Cash and cash equivalents
•Trade and other receivables
•Inventories
•Biological assets
•Investments
•Financial assets
•Investment property
•Property, plant, and equipment
Assets
Liabilities
Owner's Equity
Retained Earning can be found under _____________.
Assets
Liabilities
Owner's Equity
Cash in Bank is classified as
Current Asset
Current Liability
Noncurrent Asset
Noncurrent Liability
Account Receivable is classified as
Current Asset
Current Liability
Noncurrent Asset
Noncurrent Liability
Accumulated Depreciation
Current Assets
Non-Current Assets
Contra Asset Account
Allowance for Bad Debts
Current Assets
Non-Current Assets
Contra Asset Accounts
Select three examples of an asset?
Current liabilities are short-term debts. The money owed must be paid back within one year.
True
False
Long-term liabilities are debts paid back over a long period of time.
True
False
is the ability of the entity to meet currently maturing obligations.
(a)
short-term highly liquid investments that are readily convertible into known amount of cash and which are subject to an insignificant risk of changes in value
(a)
an investment normally qualifies as a cash equivalent only when it has a short maturity of __________ from the date of acquisition
three months or less
three months
three months or more
one year
Equity securities cannot qualify as cash equivalent because shares do not have a date of maturity
TRUE
FALSE
I DON'T KNOW
When the normal operating cycle is not clearly identifiable, the duration is assumed to be (a) .
Which of the following is a non current asset?
Cash
Accounts Receivable
Building
Inventory
Which of the following is a current asset?
Land
Prepaid Asset
Equipment
Accumulated Depreciation
These are the resources owned by the company that can provide future economic benefits.
Assets
Liabilities
Owner's Equity
These are the cost of goods and services that are used or consumed in the operation of the business.
Expenses
Income
Liabilities
It informs the users of the financial condition of the business at a given date.
Statement of Financial Position
Financial Statement
Statement of Income
An increase in economic benefits during the period of time in the form of inflows.
Liabilities
income
expenses
What are the elements of the Statement of Financial Position?
Assets, liabilities and equity
Revenue and expenses
Assets, Liabilities, Equity, Revenue and Expenses
None of these choices
These are resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
Expenses
Liabilities
Assets
Equity
Which of the following is the fundamental accounting equation?
Equity = Assets - Liabilities
Assets = Liabilities + Equity
All of the choices
Value Received = Value Parted With
Which of the following is/are asset account/s?
Cash
Accounts Payable
Accounts Receivable
Rental Income
Prepaid Insurance
What is Equity?
Cash from the business
Owner's claim on total assets
Liability of a business
Owner's claim on total liabilities
What is cash flow?
The Route of Funds
Money that comes and goes
Money that goes from business to business
Why is the cash flow important?
To know the available cash you have
To know if the business/individual is being efficient with its cash
To avoid negative balances
All are correct
What is Income?
Money that goes
Money that flow
Money that you bring in
What is an Asset?
debts you owe
anything you borrow
anything you own that has value
Property owned by a person or company, regarded as having value is an __________
asset
liability
net worth
pizza
What is a Liability ?
anything you own that has value
debts you owe
something you borrow
Bills and Loans are examples of ________?
Assets
Liabilities
Net worth
Pickles
Which are examples of expenses?
Rent/Mortgage
Car Insurance
Credit Card debt
Savings account
A thing for which someone is responsible, especially a debt or financial obligation is a _____.
asset
liability
net worth
bacon
What is another word for Wealth?
Rich
Net Worth
Wealthy
Asset-Liabilities=
Net Worth/Wealth
Cash Flow
Income
Expenses
You can have negative Net Worth.
True
False
What is the main purpose of a balance sheet?
To calculate profit or loss
To provide information about the company's financial position
To track daily expenses
What does the term 'equity' represent in accounting?
The total revenue of a company
The total expenses of a company
The ownership interest in a company
What is the formula to calculate net income?
Net Income = Revenue - Expenses
Net Income = Revenue + Expenses
Net Income = Revenue / Expenses
