WorksheetsACC12 Qualifying Exam
Total questions: 20
Worksheet time: 20mins
What is the main purpose of an income statement?
To show the company’s financial position
To report the company’s profitability for a period
To list assets and liabilities
To report the company's profitability at a specific point in time
Which of the following represents an inflow of cash from selling goods or services?
Expense
Liability
Revenue
Asset
What is the formula for computing net income?
Assets − Liabilities
Revenues + Expenses
Revenues − Expenses
Assets - Expenses
Which of the following is considered an expense?
Service Revenue
Accounts Receivable
Utilities
Owner’s Capital
When expenses exceed revenues, the business reports a:
Gross loss
Gross profit
Net loss
Capital increase
Which statement is prepared first among the basic financial statements?
Balance Sheet
Statement of Owner’s Equity
Income Statement
Statement of Cash Flows
Which account does NOT appear on the income statement?
Cost of Goods Sold
Service Revenue
Cash
Purchases
What is the main purpose of the Statement of Changes in Owner’s Equity?
To explain changes in cash inflows and outflows
To explain changes in owner’s capital
To explain changes in company assets
To explain changes in gross profit
Which item decreases owner’s equity?
Additional investment
Net income
Owner’s withdrawals
Service revenue
The Statement of Changes in Owner’s Equity is prepared:
Before the income statement
After the balance sheet
After the income statement
At the same time as the balance sheet
Which is the correct order in computing ending capital?
Beginning capital + withdrawals − net income
Beginning capital + net income − withdrawals
Beginning capital − contributions + income
Beginning capital + expenses − drawings
What does the ending capital represent?
Total capital
Owner’s equity at the end of the period
Total revenues
Owner's equity at the start of the period
Owner’s additional investment will:
Decrease capital
Increase capital
Decrease assets
Increase expenses
What is the purpose of the Balance Sheet?
To show profitability over a period of time
To show changes in equity
To show financial position at a specific point in time
To show financial performance over a period of time
Which accounting equation is shown in the balance sheet?
Revenues − Expenses = Net Income
Assets = Liabilities + Equity
Assets + Liabilities = Equity
Assets + Capital = Liabilities
Which of the following is a current asset?
Equipment
Truck
Cash
Loans Payable
Which account is a liability?
Supplies
Accounts Receivable
Unearned Revenue
Capital
Which item appears under non-current assets?
Cash
Accounts Receivable
Equipment
Supplies
Total Assets equals Total Liabilities plus Owner's Equity. If total assets are P30,060 and total liabilities are P22,800 , owner’s equity is:
P7,260
P52,860
P30,060
P22,800
When total assets equal total liabilities and equity, the balance sheet is:
Incorrect
Unbalanced
Balanced
Overstated
