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Accounting Test - Level1 - English

This document appears to be a test on accounting concepts related to financial statements such as the balance sheet and income statement. It contains 15 multiple choice questions testing understanding of topics like classifying assets and liabilities, the impact of transactions on financial statements, accounting equations, and accrual accounting. The test-taker has 15 minutes to complete the test by selecting the single correct answer for each question in yellow highlighting.

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TamaraAssorCohen
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142 views4 pages

Accounting Test - Level1 - English

This document appears to be a test on accounting concepts related to financial statements such as the balance sheet and income statement. It contains 15 multiple choice questions testing understanding of topics like classifying assets and liabilities, the impact of transactions on financial statements, accounting equations, and accrual accounting. The test-taker has 15 minutes to complete the test by selecting the single correct answer for each question in yellow highlighting.

Uploaded by

TamaraAssorCohen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Confidential

………………………………………………………… :Name and surname, date

You have 15 minutes to complete this test. Please highlight in yellow answers on below questions.

Only ONE answer is correct.

1. Which of the following is not a current asset?

a) Cash

b) Accounts receivable

c) Inventory

d) Property, plant, and equipment

2. What are the effects on the balance sheet when a company borrows a two-year bank loan of
$1,000?

a) $1,000 credit in current liabilities; $1,000 debit in current assets

b) $1,000 credit in current liabilities; $1,000 debit in non-current assets

c) $1,000 credit in non-current liabilities; $1,000 debit in current assets

d) $1,000 credit in non-current liabilities; $1,000 debit in non-current assets

3. Accounts Payable is classified as a/an ___________ in the _____________.

a) Current asset; Balance Sheet

b) Current liability; Balance Sheet

c) Expense; Income Statement

d) Revenue; Income Statement

4. Brown Glory Corp. has sales revenue of $150,000, sales discounts of $12,000, sales returns
allowances of $24,000, and cost of goods sold of $60,000. What would be the net sales revenue of
Brown Glory Corp.?

a) $102,000

b) $54,000

c) $90,000

d) $114,000

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Confidential

5. Which of the following is the correct formula to calculate operating income?

a) Operating income = Revenue - Direct operating cost

b) Operating income = Revenue - Indirect operating cost

c) Operating income = Gross profit - Direct operating cost

d) Operating income = Gross profit - Indirect operating cost

6. Which of the following is not an example of cash flow generated in financial operation?

a) Issuing shares of $10M

b) Repayment of $50,000 long-term debt

c) Paying dividend of $200,000 to shareholders

d) Purchase of equipment for $60,000

7. Taking a loan (money received on the bank account) is reflected in:

a) balance sheet

b) balance sheet and profit and loss

c) in the cash flow statement and balance sheet

d) in the balance sheet and the statement of changes in equity

8. Which of the following economic operations will change the balance sheet total:

a) admission to the warehouse goods purchased for cash,

b) booking the cost invoice and releasing the provision

c) repayment of liabilities towards suppliers from the funds in the bank account,

d) allocating the profit to increase equity.

9. Which of the following balance sheet data is correct?

Equity Liabilities Assets

a) 35.000 zł 24.000 zł 11.000 zł

b) 21.000 zł 15.000 zł 36.000 zł.

c) 25.000 zł 33.000 zł 8.000 zł

d) 33.000 zł 25.000 zł 8.000 zł

10. What happens to the balance sheet when a company makes sales of $500, of which $300 is paid in
cash and $200 is sold on credit?

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a) $300 debit in cash; $200 debit in accounts receivable; $500 credit in retained earnings

b) $300 credit in cash; $200 credit in accounts receivable; $500 debit in retained earnings

c) $300 debit in cash; $200 debit in accounts payable; $500 credit in retained earnings

d) $300 credit in cash; $200 credit in accounts payable; $500 debit in retained earnings

11. Which of the following is true about the accrual concept?

a) It requires companies to recognize revenues and costs as the business receives or pays the actual cash
for them

b) It requires companies to recognize revenues and costs as the business incurs them

c) The cash flow statement records transactions when the business incurs them

d) Profits on the income statement equals the closing cash flow on the cash flow statement

12. A short-term loan is always:

a) liability to the bank above one year

b) a part of foreign capital

c) source of financing for current assets

d) financial income

13. Inventory and accounts receivable are classified in the balance sheet as……?

a) Non-current assets

b) Current liabilities

c) Current assets

14. What happens to the balance sheet when a company pays salaries of $5,000?

a) $5,000 credit in cash; $5,000 debit in accounts payable

b) $5,000 credit in cash; $5,000 debit in retained earnings

c) $5,000 debit in cash; $5,000 credit in retained earnings

d) $5,000 credit in cash; $5,000 debit in accounts receivable

15. Which of the following documents authorizes the purchase transaction?

a) Credit memo from supplier

b) Invoice or bill from supplier

c) Purchase order

d) Purchase requisition

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Confidential

Total 15 (1 points per each question); positive evaluation 9 points / 60% for AP/CB
and 11 points / 73% for GL

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