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1)

Financial statements are prepared mainly for

A)  Internal users of financial informationWRONG ANSWER

B)  External users of financial informaitonRIGHT ANSWER!!!

C)  Creditors of the businessWRONG ANSWER

D)  Managers of the busienssWRONG ANSWER


2)

Net profit is computed in which of the following?

A)  Balance sheetWRONG ANSWER

B)  Income statementRIGHT ANSWER!!!

C)  Cash flow statementWRONG ANSWER

D)  Statement of changes in equityWRONG ANSWER


3)

Which of the following should be the most appropiate order of current asset in a balance sheet?

A)  cash, debor, bank, stockWRONG ANSWER

B)  Bank, cash, stock, debtorWRONG ANSWER

C)  Stock, bank, cash, debtorWRONG ANSWER

D)  Cash, bank, debtor, stockRIGHT ANSWER


4)

In income statement, gross profit is always equal to

A)  Sales-expensesWRONG ANSWER

B)  Incomes-expensesWRONG ANSWER

C)  Sales-cost of goods soldRight ANSWER

D)  Sales-selling costsWRONG ANSWER


5)

Office equipment is a ________ asset for a computer manufacturer and the same office equipment is a _________ asset for a company that deals in these equipments

A)  Current, FixedWRONG ANSWER

B)  Fixed, intangibleWRONG ANSWER

C)  Tangible, intangible WRONG ANSWER

D)  Fixed, currentRIGHT ANSWER!!!


6)

Identify the external user of financial information or financial statements

A)  Management of the businessWRONG ANSWER

B)  CFO of the business WRONG ANSWER

C)  Employees of the businessWRONG ANSWER

D)  Investors of the businessRIGHT ANSWER!!!


7)

A statement or report that records the fluctuation in business's capital is referred as

A)  Balance sheetWRONG ANSWER

B)  Income statementWRONG ANSWER

C)  Cash flow statementWRONG ANSWER

D)  Statement of changes in equityRIGHT ANSWER!!!


8)

Financial statements mainly help in

A)  Assumption of economic eventsWRONG ANSWER

B)  Anticipation of economic eventsWRONG ANSWER

C)  Recording of economic eventsWRONG ANSWER

D)  Communication of economic eventsRIGHT ANSWER


9)

Purchases+opening stock-closing stock=?

A)  Amount of salesWRONG ANSWER

B)  Gross profitWRONG ANSWER

C)  Cost of goods soldRIGHT ANSWER!!!

D)  Net incomeWRONG ANSWER


10)

Which of the following financial statements shows the financial position of a business at a specific date?

A)  Balance sheetRIGHT ANSWER!!!

B)  Income statementWRONG ANSWER

C)  Cash flow statementWRONG ANSWER

D)  Statement of changes in equityWRONG ANSWER







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