Quiz #1

• All of the ff. are external users of accounting information except-

  1. Regulatory Agencies
  2. Management
  3. Trade associations
  4. Suppliers
• Characteristic in which financial statements are relatively free from bias and error

  1. Relevance
  2. Understandability
  3. Reliability
  4. Comparability
• The owner's claims on the business assets

  1. Accounts Payable
  2. Liabilities
  3. Outsider Claims
  4. Capital
• The income statement reports

  1. financial position on a specific date
  2. financial position for a specific period
  3. results of operations on a specific date
  4. results of operations for a specific period
• The primary function of accounting is

  1. to provide quantitative information about economic entities that is useful in making economic decisions
  2. to provide information that the creditors of an entity can use in deciding whether to make additional loans to the entity
  3. to measure resources owned by the economic entities and the financial obligations of the entities
  4. to provide the information that managers of an entity need to control its operations
• Accountants who are engaged in public accounting generally work in one or more of the following fields

  1. internal auditing, tax services and management advisory services
  2. tax services, management advisory services and auditing
  3. government accounting, private accounting and auditing
  4. tax services, cost accounting and budgeting
• The statement which presents the financial picture of a company as of a specific date is the

  1. Balance Sheet
  2. Statement of Changes in Owner's Equity
  3. Statement of Cash flows
  4. Income Statement
• Schools

  1. Service
  2. Merchandising
  3. Manufacturing
• Grocery Store

  1. Service
  2. Merchandising
  3. Manufacturing
• Shoe Factory

  1. Service
  2. Merchandising
  3. Manufacturing
• Hardware Store

  1. Service
  2. Merchandising
  3. Manufacturing
• Textile Mill

  1. Service
  2. Merchandising
  3. Manufacturing
• Automobile

  1. Asset
  2. Liability
  3. Capital
• B. Sonyeondan , Drawing

  1. Asset
  2. Liability
  3. Capital
• Prepaid Insurance

  1. Asset
  2. Liability
  3. Capital
• Taylor Swift sold four of her new album ($ 30 each) today October 25. Of the albums sold, two will be paid on October 27, one on October 29 and one on November 2.

  Using Accrual Basis, when will the first two albums be recorded as sold.

  1. October 25
  2. October 27
  3. October 29
  4. November 2
• Taylor Swift sold four of her new album ($ 30 each) today October 25. Of the albums sold, two will be paid on October 27, one on October 29 and one on November 2.

  Using Accrual Basis, how much is the total sales as of October 29

  1. $ 30
  2. $ 60
  3. $ 90
  4. $ 120
• Taylor Swift sold four of her new album ($ 30 each) today October 25. Of the albums sold, two will be paid on October 27, one on October 29 and one on November 2.Using Cash Basis, when will the first two albums be recorded as sold.

  1. October 25
  2. October 27
  3. October 29
  4. November 2
• Taylor Swift sold four of her new album ($ 30 each) today October 25. Of the albums sold, two will be paid on October 27, one on October 29 and one on November 2.

  Using Cash basis, how much is the total sales as of October 29

  1. $ 30
  2. $ 60
  3. $ 90
  4. $ 120
• Taylor Swift sold four of her new album ($ 30 each) today October 25. Of the albums sold, two will be paid on October 27, one on October 29 and one on November 2.

  Using Cash basis, how much is the total sales as of October 25

  1. $ 30
  2. $ 60
  3. $ 90
  4. $ 0