vu fin621 Final Term - Quiz No.5
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: If the estimated amount of depreciation on equipment for a period is Rs.2000, the adjusting entry to record depreciation would be:
Depreciation expense - Debit; Equipment - Credit
Depreciation expense - Debit; Accumulated depreciation - Credit
Equipment - Debit; Depreciation expense - Credit
Accumulated depreciation - Debit; Depreciation expense - Credit
Question 2: Which of the following truly represents expenses?
Future benefits
Past results
Cost of doing business
Past receipts
Question 3: Which of the following principle is used for recording revenue?
Matching Principle
Cost Principle
Realization Principle
Objectivity Principle
Question 4: The basic purpose of financial statements is to assist users in evaluating the __________
Financial position
Profitability of an organization
Future prospects
All of the given options
Question 5: Statement of cash flows helps the investors and other stake holders to assess:
The ability to generate future cash flows
The liquidity of the business
Ability to pay cash dividends in the future
All of the given options
Question 6: According to __________ the personal expenses paid by Mr. A from his own pocket would not be recorded in business books of account.
Realization principle
Separate entity principle
Matching principle
Materiality principle
Question 7: Which of the following terms present a cause and effect relationship with each other?
Income statement and balance sheet
Revenue and assets
Assets and liabilities
Revenues and expenses
Question 8: Which of the following is true about After closing trial balance?
It may consist of balances of only Real and Personal accounts
It may consist of balances of only Real and Commercial accounts
It may consist of balances of only Fake and Personal accounts
It may consist of balances of only Fake and Commercial accounts
Question 9: Which one of the following statement shows the effects of cash inflows and outflows?
Balance Sheet
Statement of Owners Equity
Income Statement
Statement of Cash Flow
Question 10: Cash has been described as:
The lifebuoy of the business
The lifeboat of the business
The lifeline of the business
The lifeblood of the business
