Quiz Start Time: 09:07 PM Time Left 85
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Question # 1 of 15 ( Start time: 09:07:37 PM ) Total Marks: 1
Which of the following items are included in the financing activities section of the statement of cash flows?
Select correct option:


  • Cash effects of transactions involving making and collecting loans
  • Cash effects of acquiring and disposing of investments and property, plant, and equipment
  • Cash effects of transactions obtaining resources from owners and providing them with a return on their investment
  • Cash effects of transactions that enter into the determination of net income




Quiz Start Time: 09:07 PM Time Left 84
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Question # 2 of 15 ( Start time: 09:08:15 PM ) Total Marks: 1
Which of the following principle is used for recording a revenue?
Select correct option:


  • Matching Principle
  • Cost Principle
  • Realization Principle
  • Objectivity Principle


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Quiz Start Time: 09:07 PM Time Left 88
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Question # 3 of 15 ( Start time: 09:08:48 PM ) Total Marks: 1
Adjusting entries are required for which of the following accounts?
Select correct option:


  • Income Summary accounts
  • Revenue and expense accounts
  • All types of accounts
  • Assets and liabilities accounts


Quiz Start Time: 09:07 PM Time Left 88
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Question # 4 of 15 ( Start time: 09:09:18 PM ) Total Marks: 1
Depreciation is added back to profit when arriving at the cash flow from operating activities because:
Select correct option:


  • Depreciation is only an estimated amount
  • Depreciation does not affect profit
  • Depreciation does not result in a flow of cash
  • Depreciation only affects the balance sheet, not the profit and loss account


Quiz Start Time: 09:07 PM Time Left 88
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Question # 5 of 15 ( Start time: 09:09:56 PM ) Total Marks: 1
Under which cost flow assumption is the ending inventory composed of the most recently purchased merchandise?
Select correct option:


  • FIFO
  • LIFO
  • Average cost
  • Specific identification


Quiz Start Time: 09:07 PM Time Left 89
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Question # 6 of 15 ( Start time: 09:10:40 PM ) Total Marks: 1
There are five main kinds of current assets. Which of the following is NOT among them?
Select correct option:


  • Cash and equivalents
  • Deferred income
  • Accounts receivable
  • Prepaid expenses


Quiz Start Time: 09:07 PM Time Left 88
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Question # 7 of 15 ( Start time: 09:11:00 PM ) Total Marks: 1
______is helpful for the investors and creditors to assess the cash and non cash aspects of investing and financing transactions on an entity’s financial position?
Select correct option:


  • Balance Sheet
  • Income Statement
  • Statement of cash flows
  • Statement of changes in equity


Quiz Start Time: 09:07 PM Time Left 88
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Question # 8 of 15 ( Start time: 09:11:26 PM ) Total Marks: 1
Which of the following must be included in a company's summary of significant accounting policies in the notes to the financial statements?
Select correct option:


  • Description of current year equity transactions
  • Summary of long-term debt outstanding
  • Schedule of fixed assets
  • Revenue recognition policies


Quiz Start Time: 09:07 PM Time Left 89
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Question # 9 of 15 ( Start time: 09:12:08 PM ) Total Marks: 1
Which of the following terms present a cause and effect relationship with each other?
Select correct option:



  • Income statement and balance sheet
  • Revenue and assets
  • Assets and liabilities
  • Revenues and expenses



Quiz Start Time: 09:07 PM Time Left 88
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Question # 10 of 15 ( Start time: 09:12:36 PM ) Total Marks: 1
Audit opinions can NOT be classified as which of the following?
Select correct option:


  • Adverse opinion
  • Unqualified opinion
  • Qualified opinion
  • Disagreement of opinion



Quiz Start Time: 09:07 PM Time Left 88
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Question # 11 of 15 ( Start time: 09:13:12 PM ) Total Marks: 1
Which of the following expenses would normally be classified as Other or Non Operating Expense on a multiple-step income statement?
Select correct option:


  • Interest expense
  • Depreciation expense
  • Insurance expense
  • Salaries expense


Quiz Start Time: 09:07 PM Time Left 89
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Question # 12 of 15 ( Start time: 09:13:51 PM ) Total Marks: 1
Gross profit is:
Select correct option:

  • Excess of sales over cost of goods sold
  • Sales less Purchases
  • Cost of goods sold + Opening stock
  • Net profit less expenses of the period


Quiz Start Time: 09:07 PM Time Left 89
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Question # 13 of 15 ( Start time: 09:14:13 PM ) Total Marks: 1
Which of the following principle states that the assets are purchased for the use and not for resale purpose?
Select correct option:

  • Stable Currency principle
  • Objectivity Principle
  • Going-concern principle
  • Cost Principle


Quiz Start Time: 09:07 PM Time Left 89
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Question # 14 of 15 ( Start time: 09:14:40 PM ) Total Marks: 1
Which of the following would NOT be the characteristics of current assets?
Select correct option:


  • Likely to change before the next accounting period is over
  • Not bought for resale
  • Use as part of the firm's trading operations
  • Liquidity





Quiz Start Time: 09:07 PM Time Left 88
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Question # 15 of 15 ( Start time: 09:15:18 PM ) Total Marks: 1
Which of the following would be affected by the difference between revenues and expenses?
Select correct option:

  • Assets
  • Owner’s equity
  • Liabilities
  • Capital