vu fin621 Final Term - Quiz No.2
vu fin621 Financial Statement Analysis Quiz
This quiz belongs to book/course code vu fin621 Financial Statement Analysis of vu organization. We have 6 quizzes available related to the book/course Financial Statement Analysis. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: Accounting is called the language of business because __________ :
It communicates the financial information to the Management only
In order to run a business one must have knowledge about accounting
Different business accounts are involved in financial statements
It helps to organize and communicate financial information to end users
Question 2: Identify the statement that is NOT true about the Incomes Account and Expenses Account:
These are the temporary accounts
These are closed in Income summery account
These may included in closing trial balance
These are also known as Nominal Accounts
Question 3: How many parts does each account have?
Two
Four
Three
Five
Question 4: Closing entries result in net income being calculated in the income summary account and then transferred to which of the following account?
Revenue account
Common Stock account
Dividends account
Retained Earnings account
Question 5: Pre-paid expense is a(n) __________ type of account.
Liability
Asset
Revenue
Expense
Question 6: While preparing the cash flows statement, transactions involving production and delivering goods or providing services must be classified as:
Business activities
Operating activities
Financing activities
Investing activities
Question 7: Which of the following term refers to each element of the Balance Sheet?
Ledger
Journal General
T- Account
Account
Question 8: An entry that effects more than one accounts is knows as __________.
Journal entry
Compound entry
Adjusting entry
Reversing entry
Question 9: Which of the following is an example of an accrual?
Equipment purchased for use in the business
Book-keeping fees collected but not yet earned
Six months rent paid in advance
Interest earned but not yet received
Question 10: Which of the following items are included in the financing activities section of the statement of cash flows?
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
