WorksheetsAccountant Exam
Total questions: 13
Worksheet time: 13mins
Which of the following is a current asset on the balance sheet?
A) Goodwill
B) Cash
C) Property, plant, and equipment
D) Bonds payable
Which equation represents the fundamental accounting equation?
A) Assets = Liabilities + Owners' Equity
B) Assets = Revenue + Expenses
C) Liabilities = Assets - Equity
D) Revenue = Expenses + Profit
A company receives BD 12000 in advance for a one-year subscription. If the company prepares monthly financial statements, what should be recognized each month?
A) BD 12000 as revenue each month
B) BD 2000 as revenue each month
C) BD 1000 as revenue each month
D) BD 2000 as expense each month
How is deferred revenue typically recognized on the financial statements?
A) As an asset
B) As an expense
C) As a liability until the service/product is provided
D) As income immediately
Which of the following is an example of "revenue recognition over time"?
A) Sale of a product in a retail store
B) Long-term construction contracts
C) Subscription-based services
D) Both B and C
What is a right-of-use (ROU) asset under IFRS 16?
A) An asset that represents the present value of the lease payments made
B) An asset that represents the lessee’s right to use an underlying leased asset for a specified period of time
C) An asset that represents the cost of lease modifications
D) An asset that represents ownership of the leased asset
How does IFRS 16 affect the income statement for lessees?
A) Lease expenses are recognized as a single expense item
B) Lease expenses are split into depreciation and interest
C) Lease expenses are only recognized when cash is paid
D) Lease expenses are not recorded in the income statement
What is the correct entry when a customer payment is received and deposited into the company's bank account?
A) Debit Accounts Receivable; Credit Bank Account
B) Debit Cash; Credit Accounts Payable
C) Debit Bank Account; Credit Accounts Receivable
D) Debit Sales Revenue; Credit Accounts Receivable
How is depreciation of an asset typically recorded in the General Ledger?
A) Debit Depreciation Expense; Credit bank Account
B) Debit Accumulated Depreciation; Credit Depreciation Expense
C) Debit Depreciation Expense; Credit Accumulated Depreciation
D) Debit Asset Account; Credit Depreciation Expense
What is the purpose of a trial balance?
A) To ensure that the company’s assets equal its liabilities
B) To ensure that the total debits equal the total credits
C) To summarize the company’s income and expenses
D) To determine the company’s net income for the period
What is the main purpose of preparing a cash flow statement?
A) To show the profitability of a company
B) To reconcile the income statement with the balance sheet
C) To provide insights into the company’s liquidity and cash movements
D) To calculate the company’s tax obligations
How is a prepaid expense recorded in the books initially?
A) Debit Expense; Credit Prepaid Expense
B) Debit Prepaid Expense; Credit Account Payable
C) Debit Account payable ; Credit Prepaid Expense
D) Debit Expense; Credit Accounts Payable
What does the "revenue recognition principle" state?
A) Revenue is recognized when cash is received from customers
B) Revenue is recognized when it is earned, regardless of when cash is received
C) Revenue is recognized only after expenses are paid
D) Revenue is recognized at the end of the fiscal year
