Financial statements MCQs

11)

Which of the following financial reports shows the profitable of a business?

A)  Income statement RIGHT ANSWER!!!

B)  Balance sheetWRONG ANSWER

C)  Cash flow statementWRONG ANSWER

D)  Statement of changes in equityWRONG ANSWER


12)

Assets minus liabilities equal to

A)  GoodwillWRONG ANSWER

B)  Working capitalWRONG ANSWER

C)  Net incomeWRONG ANSWER

D)  CapitalRIGHT ANSWER!!!


13)

Which of the following financial statements shows the movement of cash and cash equivalents in during an accounting period?

A)  Income statement WRONG ANSWER

B)  Balance sheetWRONG ANSWER

C)  Cash flow statementRIGHT ANSWER!!!

D)  Statement of changes in equityWRONG ANSWER


14)

Goodwill is classified as which one of the following assets?

A)  Fixed WRONG ANSWER

B)  Long termWRONG ANSWER

C)  CurrentWRONG ANSWER

D)  IntangibleRIGHT ANSWER!!!


15)

Which of the following does not appear in Balance sheet?

A)  BuildingWRONG ANSWER

B)  CashWRONG ANSWER

C)  GoodwillWRONG ANSWER

D)  Rent expensesRIGHT ANSWER!!!


16)

Which of the following lists down the balances to asset accounts, liability accounts and capital account balances?

A)  Income statement WRONG ANSWER

B)  Balance sheetRIGHT ANSWER!!!

C)  Cash flow statementWRONG ANSWER

D)  Statement of changes in equityWRONG ANSWER



17)

Current assets are also known as

A)  Working capitalRIGHT ANSWER!!!

B)  Invested capitalWRONG ANSWER

C)  AssetsWRONG ANSWER

D)  CashWRONG ANSWER


18)

The expenses related to the main operations of business are referred as

A)  Administration expense WRONG ANSWER

B)  Non-administration expenseWRONG ANSWER

C)  Selling expensesWRONG ANSWER

D)  Operating expensesRIGHT ANSWER!!!


19)

Cash receipt from the sales fixed assets is recorded under the heading of

A)  Operating activitiesWRONG ANSWER

B)  Financing activitiesWRONG ANSWER

C)  Investing activitiesRIGHT ANSWER!!!

D)  Other activitiesWRONG ANSWER


20)

A current asset that is convertible to cash within 3 months can be referred to as

A)  Cash assetWRONG ANSWER

B)  Operating assetWRONG ANSWER

C)  Intangible assetWRONG ANSWER

D)  Cash equivalentRIGHT ANSWER!!!