vu fin621 Final Term - Quiz No.3
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: Which of the following items are NOT added back to the net income figure (which is found on the Income Statement) to arrive at cash flows from operations?
Depreciation
Deferred tax
Amortization
Investments
Question 2: A business has purchased a building on cash, how it would be recorded in the journal?
Building - Debit; Cash - Credit
Cash - Debit; Building - Credit
Building - Debit; Owner's equity - Credit
Building - Debit; Accounts Payable - Credit
Question 3: Which of the following is true about the Profit earned by the business?
It shows the amount that is received from the customer in cash only
It always results in increase in closing cash balance of a period
It affects the owner's equity and liabilities in balance sheet
It may improves the liquidity position of a business
Question 4: Net current assets are equivalent to:
Stock plus debtors plus cash
Current liabilities less current assets
Working capital
Fixed assets plus current assets less current liabilities
Question 5: Which of the following may include the analyzing the transaction the first step of the accounting cycle?
Determining the transaction amount
Determining the effected accounts
Identifying the event as a transaction
All of the given options
Question 6: Mr. A purchases a piece of land for cash and debit made to machinery account. What would be the effect of this error on the trial balance?
Debit side would be decrease with the same amount
Credit side would be increase with the same amount
Total of the trial balance would be agree in all aspect
None of the given options
Question 7: Which one of the following would lead to the decrease in the owner's equity?
Purchasing a piece of land
Paying dividends to shareholders
Purchasing equipment on account
Paying back the principal of a loan
Question 9: Which of the following account would be classified as a current asset on the balance sheet?
Accumulated depreciation
Accounts receivable
Office equipment
Land
Question 10: Depreciation is added back to profit when arriving at the cash flow from operating activities because:
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
