Category : Databases and related files
Archive   : FINEVAL.ZIP
Filename : QQ1.TST

1. The net income for an entity for a period of time is shown in
the __________ statement.

a. balance
b. retained earnings
c. income
d. changes in working capital
[
2. Net income is equal to the difference between __________ and
__________.

a. assets, liabilities
b. revenue, expenses
c. dividends, interest
d. assets, capital
[
3. An increase in capital arising from the sale of merchandise is
called a(n):

a. expense
b. revenue
c. asset
d. liability
[
4. A decrease in capital due to performing a function necessary for
obtaining revenue is called a(n):

a. income
b. liability
c. payable
d. expense
[
5. Income statement accounts are of a(n) __________ nature since
they are eventually closed out to the __________ account.

a. fixed, liability
b. current, asset
c. temporary, capital
d. fixed, asset
[
6. Under accrual accounting, revenue is recognized when __________;
expenses are recognized when __________.

a. accrued, spent
b. earned, incurred
c. assets are increased, liabilities are decreased
d. dividends are paid, interest is earned
[
7. When an owner of a business withdraws money for personal use the
__________ account is reduced.

a. liability
b. fixed asset
c. bank
d. capital
[
8. Listed in the balance sheet are the __________, the __________,
and the __________.

a. assets, liabilities, capital
b. current assets, current liabilities, fixed income
c. gross sales, gross expenses, net income
d. income, expenses, retained earnings
[
9. The balance sheet is prepared as of the __________ of the
reporting period.

a. end
b. beginning
c. middle
d. fiscal year
[
10. Two types of format for the preparation of the balance sheet are
the __________ form and the __________ form.

a. income, expense
b. intangible, tangible
c. report, account
d. administrative, audit
[
11. The connecting link between two successive balance sheets is the
__________ statement.

a. retained earnings
b. working capital
c. capital
d. income
[
12. Advertising is an example of a(n) __________ expense.

a. selling
b. buying
c. current
d. administrative
[
13. The salary of a company's president is a(n) __________ expense.

a. selling
b. administrative
c. deductible
d. liability
[
14. Current assets divided by current liabilities is termed the
__________ ratio.

a. quick
b. profitability
c. efficiency
d. current
[
15. A patent is an example of a(n) __________ asset.

a. intangible
b. current
c. fixed
d. liquid
[
16. Dividends reduce:

a. assets
b. expenses
c. liabilities
d. retained earnings
[
17. Income taxes payable is shown only on a(n) __________ books.

a. sole proprietor's
b. partnership's
c. corporation's
d. set of audited
[
]