FIN621 Online Quiz June 2010

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Quiz Start Time: 09:07 PM Time Left 85
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Question # 1 of 15 ( Start time: 09:07:37 PM ) Total Marks: 1
Which of the following items are included in the financing activities section of the statement of cash flows?
Select correct option:

• 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
  

Quiz Start Time: 09:07 PM Time Left 84
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Question # 2 of 15 ( Start time: 09:08:15 PM ) Total Marks: 1
Which of the following principle is used for recording a revenue?
Select correct option:

• Matching Principle
  
• Cost Principle
  
• Realization Principle
  
• Objectivity Principle
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 3 of 15 ( Start time: 09:08:48 PM ) Total Marks: 1
Adjusting entries are required for which of the following accounts?
Select correct option:

• Income Summary accounts
  
• Revenue and expense accounts
  
• All types of accounts
  
• Assets and liabilities accounts
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 4 of 15 ( Start time: 09:09:18 PM ) Total Marks: 1
Depreciation is added back to profit when arriving at the cash flow from operating activities because:
Select correct option:

• 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
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 5 of 15 ( Start time: 09:09:56 PM ) Total Marks: 1
Under which cost flow assumption is the ending inventory composed of the most recently purchased merchandise?
Select correct option:

• FIFO
  
• LIFO
  
• Average cost
  
• Specific identification
  

Quiz Start Time: 09:07 PM Time Left 89
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Question # 6 of 15 ( Start time: 09:10:40 PM ) Total Marks: 1
There are five main kinds of current assets. Which of the following is NOT among them?
Select correct option:

• Cash and equivalents
  
• Deferred income
  
• Accounts receivable
  
• Prepaid expenses
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 7 of 15 ( Start time: 09:11:00 PM ) Total Marks: 1
______is helpful for the investors and creditors to assess the cash and non cash aspects of investing and financing transactions on an entity’s financial position?
Select correct option:

• Balance Sheet
  
• Income Statement
  
• Statement of cash flows
  
• Statement of changes in equity
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 8 of 15 ( Start time: 09:11:26 PM ) Total Marks: 1
Which of the following must be included in a company's summary of significant accounting policies in the notes to the financial statements?
Select correct option:

• Description of current year equity transactions
  
• Summary of long-term debt outstanding
  
• Schedule of fixed assets
  
• Revenue recognition policies
  

Quiz Start Time: 09:07 PM Time Left 89
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Question # 9 of 15 ( Start time: 09:12:08 PM ) Total Marks: 1
Which of the following terms present a cause and effect relationship with each other?
Select correct option:

• Income statement and balance sheet
  
• Revenue and assets
  
• Assets and liabilities
  
• Revenues and expenses
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 10 of 15 ( Start time: 09:12:36 PM ) Total Marks: 1
Audit opinions can NOT be classified as which of the following?
Select correct option:

• Adverse opinion
  
• Unqualified opinion
  
• Qualified opinion
  
• Disagreement of opinion
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 11 of 15 ( Start time: 09:13:12 PM ) Total Marks: 1
Which of the following expenses would normally be classified as Other or Non Operating Expense on a multiple-step income statement?
Select correct option:

• Interest expense
  
• Depreciation expense
  
• Insurance expense
  
• Salaries expense
  

Quiz Start Time: 09:07 PM Time Left 89
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Question # 12 of 15 ( Start time: 09:13:51 PM ) Total Marks: 1
Gross profit is:
Select correct option:

• Excess of sales over cost of goods sold
  
• Sales less Purchases
  
• Cost of goods sold + Opening stock
  
• Net profit less expenses of the period
  

Quiz Start Time: 09:07 PM Time Left 89
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Question # 13 of 15 ( Start time: 09:14:13 PM ) Total Marks: 1
Which of the following principle states that the assets are purchased for the use and not for resale purpose?
Select correct option:

• Stable Currency principle
  
• Objectivity Principle
  
• Going-concern principle
  
• Cost Principle
  

Quiz Start Time: 09:07 PM Time Left 89
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Question # 14 of 15 ( Start time: 09:14:40 PM ) Total Marks: 1
Which of the following would NOT be the characteristics of current assets?
Select correct option:

• Likely to change before the next accounting period is over
  
• Not bought for resale
  
• Use as part of the firm's trading operations
  
• Liquidity
  

Quiz Start Time: 09:07 PM Time Left 88
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Question # 15 of 15 ( Start time: 09:15:18 PM ) Total Marks: 1
Which of the following would be affected by the difference between revenues and expenses?
Select correct option:

• Assets
  
• Owner’s equity
  
• Liabilities
  
• Capital