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    Acconting For Managers - 2

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    Mahin uddin
    This document contains a 20 question multiple choice sample quiz on basic accounting concepts for managers. The quiz covers topics like the primary purpose of financial accounting, key financial statements, the accounting equation, and definitions of common accounting terms and calculations like net income, EBITDA, depreciation, and financial ratios.

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    Acconting For Managers - 2

    Uploaded by

    Mahin uddin
    18 views6 pages
    This document contains a 20 question multiple choice sample quiz on basic accounting concepts for managers. The quiz covers topics like the primary purpose of financial accounting, key financial statements, the accounting equation, and definitions of common accounting terms and calculations like net income, EBITDA, depreciation, and financial ratios.

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    Acconting for Managers

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    Acconting for Managers_2

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    This document contains a 20 question multiple choice sample quiz on basic accounting concepts for managers. The quiz covers topics like the primary purpose of financial accounting, key financial statements, the accounting equation, and definitions of common accounting terms and calculations like net income, EBITDA, depreciation, and financial ratios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views6 pages

    Acconting For Managers - 2

    Uploaded by

    Mahin uddin
    This document contains a 20 question multiple choice sample quiz on basic accounting concepts for managers. The quiz covers topics like the primary purpose of financial accounting, key financial statements, the accounting equation, and definitions of common accounting terms and calculations like net income, EBITDA, depreciation, and financial ratios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    National University

    EA701 | Acconting for Managers


    SAMPLE QUIZ #01

    MCQ’s
    Question 1: What is the primary purpose of financial accounting?
    A) Internal decision-making
    B) External reporting to stakeholders
    C) Employee payroll processing
    D) Strategic planning
    Answer: B) External reporting to stakeholders

    Question 2: Which financial statement provides a snapshot of a company's


    financial position at a specific point in time?
    A) Income statement
    B) Statement of cash flows
    C) Balance sheet
    D) Statement of retained earnings
    Answer: C) Balance sheet

    Question 3: What is the formula for calculating net income?


    A) Revenue - Expenses
    B) Assets - Liabilities
    C) Cash Inflows - Cash Outflows
    D) Equity + Liabilities
    Answer: A) Revenue - Expenses
    Question 4: Which accounting principle states that expenses should be recorded
    in the period in which they are incurred, regardless of when the payment is
    made?
    A) Matching principle
    B) Revenue recognition principle
    C) Historical cost principle
    D) Conservatism principle
    Answer: A) Matching principle

    Question 5: What is the purpose of the statement of cash flows?


    A) To report the company's financial position at a specific date
    B) To provide details about revenue and expenses over a specific period
    C) To show how cash is generated and used by a company
    D) To calculate the company's net income
    Answer: C) To show how cash is generated and used by a company

    Question 6: Depreciation is an example of which type of accounting adjustment?


    A) Accrual
    B) Deferral
    C) Correction
    D) Amortization
    Answer: A) Accrual

    Question 7: What does the term "EBITDA" stand for in financial accounting?
    A) Earnings Before Interest, Taxes, Depreciation, and Amortization
    B) Earnings Before Income and Taxes Deducted Annually
    C) Expenses, Balance, Income, Taxes, Depreciation, and Amortization
    D) Equity, Bonds, Interest, Taxes, Depreciation, and Assets
    Answer: A) Earnings Before Interest, Taxes, Depreciation, and Amortization
    Question 8: According to the accounting equation, which statement is true?
    A) Assets = Liabilities - Equity
    B) Assets = Liabilities + Equity
    C) Assets = Liabilities x Equity
    D) Assets = Liabilities / Equity
    Answer: B) Assets = Liabilities + Equity

    Question 9: What is the purpose of the adjusting entries in accounting?


    A) To close the company's books at the end of the year
    B) To record transactions that occurred but were not yet recorded
    C) To update account balances for accruals and deferrals
    D) To calculate the company's net income
    Answer: C) To update account balances for accruals and deferrals

    Question 10: Which financial ratio measures a company's ability to meet its
    short-term obligations with its most liquid assets?
    A) Return on Investment (ROI)
    B) Current Ratio
    C) Debt-to-Equity Ratio
    D) Gross Profit Margin
    Answer: B) Current Ratio

    Question 11 What does the term "GAAP" stand for in accounting?


    A) Generally Accepted Accounting Procedures
    B) Generally Acknowledged Accounting Principles
    C) Generally Accepted Auditing Practices
    D) Generally Accepted Accounting Principles
    Answer: D) Generally Accepted Accounting Principles
    Question 12: Which accounting method records revenues and expenses when
    they are earned or incurred, regardless of when cash is received or paid?
    A) Cash basis accounting
    B) Accrual basis accounting
    C) Double-entry accounting
    D) Straight-line accounting
    Answer: B) Accrual basis accounting

    Question 13: What is the purpose of the cost of goods sold (COGS) in the
    income statement?
    A) To calculate net income
    B) To show the company's revenue
    C) To report the cost of producing goods or services sold
    D) To determine the company's equity
    Answer: C) To report the cost of producing goods or services sold

    Question 14: How does a credit entry affect an asset account?


    A) Increases the asset
    B) Decreases the asset
    C) No effect on the asset
    D) Converts the asset to a liability
    Answer: B) Decreases the asset

    Question 15: What is the purpose of the Sarbanes-Oxley Act in the context of
    accounting?
    A) To regulate international accounting standards
    B) To enhance corporate governance and financial reporting
    C) To establish rules for inventory valuation
    D) To standardize accounting methods across industries
    Answer: B) To enhance corporate governance and financial reporting
    Question 16: Which financial statement represents a company's profitability over
    a specific period?
    A) Balance sheet
    B) Income statement
    C) Statement of retained earnings
    D) Statement of cash flows
    Answer: B) Income statement

    Question 17: What is the purpose of the trial balance in accounting?


    A) To summarize the financial transactions of a company
    B) To identify and correct errors in the accounting records
    C) To calculate the company's net income
    D) To report the company's financial position at a specific date
    Answer: B) To identify and correct errors in the accounting records

    Question 18: How does a company calculate the gross profit margin?
    A) Gross Profit / Net Sales
    B) Net Income / Total Assets
    C) Operating Income / Revenue
    D) Total Expenses / Net Sales
    Answer: A) Gross Profit / Net Sales

    Question 19: Which accounting principle states that the financial statements of a
    business should be based on actual cost?
    A) Matching principle
    B) Historical cost principle
    C) Conservatism principle
    D) Revenue recognition principle
    Answer: B) Historical cost principle
    Question 20: How is the return on investment (ROI) calculated?
    A) Net Income / Average Total Assets
    B) Net Income / Equity
    C) Net Income / Net Sales
    D) Net Income / Cost of Goods Sold
    Answer: A) Net Income / Average Total Assets

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