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WorksheetsAccounting Quiz
Total questions: 40
Worksheet time: 20mins
Haya is preparing the P & L report, which of the following would be considered an operating expense?
Cost of goods sold
Interest on loans
Sales revenue
Rent for office space
Reaab decides to review her company's financials. What does a balance sheet reveal?
Its total revenue
What a business owns and owes
How much it paid in rent
How much gross profit a business made
Samer is curious about the timeframe of financial reports. How long does a balance sheet cover?
One year
One moment in time
One quarter
One tax year
Wasim is organizing his company’s assets. Identify the liability!
Machinery
Money owed to other businesses (creditors)
Stock
Cash in bank
Feras is studying for his accounting exam. True or False: Current liabilities are long-term.
True
False
Abdulsalam and Muhanned are evaluating his inventory. Spot the asset!
Reduced rent
A satisfied customer
A loan to buy a van
Any stock (Inventory) that you have
Mennah is learning about asset liquidity. Can fixed assets be converted to cash quickly?
False
True
Elham is applying for a bank loan because she is selected for EHL program. A bank loan is typically classified as:
a fixed asset
a current asset
a current liability
long-term liability
Maysa just finished a big slice of cheesecake and is feeling like a math genius. Is this the Accounting Equation? Assets = Capital - Liabilities, or did she mix up her dessert recipe with her accounting notes?
True
False
Mohammed wants to understand cash flow better. What is Working Capital?
None of the above
Current Assets - Current Liabilities
Assets - Liabilities
Fixed Assets - Long-term Liabilities
Numai is reviewing his balance sheet. Which of the following is an element of the balance sheet?
Losses
Gains
Liabilities
Expenses
Qusai is analyzing his accounts. Which of these is an asset account?
Accounts Payable
Unearned Revenue
Prepaid Insurance
Abdulsalam is learning about equity. What’s the normal balance for stockholders' equity and owner's equity accounts?
Credit
Debit
Lujain and AbdulRahman are categorizing the assets. Which of the following is NOT a current asset?
Land
Accounts Receivable
Prepaid Insurance
Supplies
Sadeen is preparing for liabilities. Notes Payable cannot appear under which classification?
Long-term liabilities
Current liabilities
Current assets
Numai is calculating his equity. Calculate owner's equity: Current Assets: $50,000 Total Assets: $150,000 Current Liabilities: $30,000 Total Liabilities: $80,000
$30,000
$120,000
$70,000
$20,000
Obai is curious about what a balance sheet lists. What does the balance sheet list?
revenues, expenses, gains, and losses
assets, liabilities, and owners’ equity
revenues, expenses, gains, and distributions to owners
assets, liabilities, and investments by owners
Raghad is analyzing financial statements. Which of the following decreases owner’s equity?
losses
gains
short-term loans
investments by owners
Which financial statement shows a company's financial position at a specific point in time?
Income statement
Cash flow statement
Balance sheet
Statement of changes in equity
What does the income statement show?
The company’s cash balance
The company’s revenues and expenses over a period
The company’s assets and liabilities
The company’s investments
How does net income from the income statement affect the balance sheet?
It increases cash only
It decreases liabilities
It adds to retained earnings under equity
It has no effect
What is the main purpose of the cash flow statement?
To show profits and losses
To track cash coming in and going out
To list all assets and liabilities
To show how much debt the company has
Which statement explains how cash flows from operating activities are calculated?
By adding all expenses to revenues
By starting with net income and adjusting for non-cash items
By only counting cash received from sales
By subtracting liabilities from assets
What do you find in the "assets" section of the balance sheet?
The company’s profits
What the company owns, like cash and inventory
The company’s debts
The company’s revenue streams
Why is the cash flow statement important for businesses?
It helps understand how much money is being made
It shows how well the company is managing its cash
It lists all the company’s expenses
It provides a summary of sales
What happens to the balance sheet if a company earns a profit?
Assets decrease
Liabilities increase
Retained earnings increase
Cash flow decreases
Which part of the cash flow statement shows money spent on buying new equipment?
Operating activities
Investing activities
Financing activities
Non-cash activities
What does the term "retained earnings" refer to?
Money paid out as dividends
Profits kept in the company for growth
Cash available for immediate use
Total revenue earned
How are expenses shown on the income statement?
As a positive number
As a negative number that reduces profit
Only when they are paid
They are not shown at all
What is the relationship between the income statement and the cash flow statement?
The income statement shows cash only
The cash flow statement adjusts net income for cash movements
They are completely unrelated
The cash flow statement shows only expenses
What are the main components of a balance sheet?
Revenues, expenses, and profits
Assets, liabilities, and equity
Cash flow, income, and expenses
Current assets, long-term liabilities, and dividends
What is an example of the Cost of Goods Sold for a clothing retailer?
Rent for the store
Advertising costs
The cost of fabric, buttons, and zippers used to make the clothes
Salaries of the sales staff
Which accounting method records revenue when a service is performed, regardless of when payment is received?
Cash basis accounting
Accrual basis accounting
Which of the following is an example of a prepaid expense?
Rent paid for the next month that is not yet used
Utilities that have been used but not yet paid
Salaries that have been earned but not yet paid
Interest on loans that has been paid
If a company sells its old equipment for cash, this transaction will result in:
Increased cash
Decreased cash
Increased liabilities
Decreased equity
What is the effect of a company repurchasing its own stock?
Increase in cash
Decrease in cash
Increase in liabilities
Decrease in equity
Which statement is true regarding cash flow from financing activities?
It includes cash received from customers.
It includes cash paid for dividends and loans.
It does not affect net income.
It is calculated before cash flow from operating activities.
Which of the following would be classified as a financing activity?
Buying new machinery
Selling inventory
Issuing new shares of stock
Collecting accounts receivable
Which income statement format combines all revenues and expenses into a single total?
Single-step
Multiple-step
Where are dividends entered but not yet paid ?
Income statement
Balance sheet as a liability
Cash flow statement
Retained earnings statement
