WorksheetsBF - 1ST QRTR QUIZ 1
Total questions: 20
Worksheet time: 20mins
A company revalues its building and reports a gain. Where does this appear?
Other comprehensive income
Net sales revenue
Cost of goods sold
Why is the Statement of Comprehensive Income important for investors?
It shows performance including non-operating gains and losses
It lists all cash inflows and outflows from operations
It details the operating revenue and expenses throughout the operation
If the company issues new shares, what happens in the Statement of Changes in Equity?
Share capital increases, total equity rises
Retained earnings increases affecting equity
Net income increases for the sale of shares
Owner withdrawals affect the Statement of Changes in Equity by:
Reducing total equity
Increasing net income
Increasing share capital
Reducing liabilities
Retained earnings appear in the Statement of Financial Position because they:
Represent accumulated profits not distributed to owners
Are the company’s total profit at the end of the year
Show the total value of all income for distribution to owners
Prepaid expenses are reported in the Statement of Financial Position as:
Assets
Liabilities
Revenue
Which of the following best describes the relationship in the Statement of Financial Position?
Assets = Liabilities - Equity
Assets + Liabilities = Equity
Assets - Equity = Liabilities
A company collects cash from customers. In which section of the cash flow statement is it reported?
Operating activities
Investing activities
Financing activities
If a company sells an old machine for cash, where is it reported?
Inflow under investing activities
Inflow under operating activities
Outflow under investing activities
Outflow under operating activities
Why are notes to financial statements important?
They provide explanations/details not shown in the main statements
They show cash inflows and outflows not shown in the main statements
They calculate net income for the period not shown in the main statements
What is the main purpose of horizontal analysis?
To compare financial data over multiple periods to detect trends
To compare a company’s figures with those of other companies
To analyze the percentage of each item in relation to total assets
What is the main purpose of vertical analysis?
To compare financial data over multiple periods to detect trends
To analyze the percentage of each item in relation to total assets
If net sales increased by 10% from last year, this is an example of:
Horizontal analysis of financial statements
Vertical analysis of the income statement
Which ratio measures a company’s ability to pay short-term debts?
Liquidity ratios
Profitability ratios
Leverage ratios
Efficiency ratios
Which ratio shows how much the company relies on debt?
Leverage ratios
Liquidity ratios
Profitability ratios
Efficiency ratios
Some shares have voting rights which gives them a say in how the company is run. We do NOT have this in ___?
Ordinary share
Preferred Share
Which of the following is true about debenture holders?
They are creditors, not owners, and earn interest
They have voting rights in company decisions
They receive dividends before preferred shareholders
Which is an example of equity financing?
Additional capital from owners
Borrowing from a bank as a loan
Issuing treasury shares
What is the main objective of business finance?
To ensure the business has enough funds for operations
To calculate the company’s total profits at year-end to grow
To manage daily cash collections and payments only
To determine the salaries of employees in the company
Mr. Laurence bought laptop worth 30,000 pesos and promised to pay it next month from Mr. Reymark. How will Mr. Reymark books record it?
Dr. Laptop / Cr. Cash
Dr. Accounts Receivables / Cr. Sales
Dr. Laptop / Cr. Accounts Payable
