Ib Business And Management Accounts & Finance: 3.5 Financial Accounts

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1.  Intangible assets include all the following except
A.
B.
C.
D.
2.  Motor vehicles tend to depreciate most in value at the beginning of their useful life
A.
B.
3.  Which of the following would be shown as an exceptional item on a profit and loss account?
A.
B.
C.
D.
4.  Interest payable means
A.
B.
C.
D.
5.  _______________: Tangible assets (e.g. not brands) that have a physical existence and are expected to be retained and used by a business for more than 12 months
6.  LIFO stock valuation will tend to reduce the tax bill for business
A.
B.
7.  A patent
A.
B.
C.
D.
8.  _______________: This is the direct cost of purchasing the goods that were sold during the financial year.
9.  Calculate the cost of sales from the following information: Cost of stock per unit = $20. Units of stock purchases = 800. Closing Stock = 300 units and Opening Stock = 250 units.
A.
B.
C.
D.
10.  If expenses are greater than gross profit for a business, then the business
A.
B.
C.
D.
11.  Hoopers Toys Ltd purchases goods at $10 000 and manages to sell these for $18 000. State the cost of goods sold
A.
B.
C.
D.
12.  Intangible assets are
A.
B.
C.
D.
13.  Fixed assets include all the following except
A.
B.
C.
D.
14.  In which account would overheads and expenses appear?
A.
B.
C.
D.
15.  Hoopers Toys Ltd purchases goods at $10 000 and manages to sell these for $18 000. State the sales revenue
A.
B.
C.
D.
16.  The main benefit to a firm using the LIFO, rather than the FIFO, method of stock control is that
A.
B.
C.
D.
17.  It is not a legal requirement for all companies to show their shareholders the sources and use of finances
A.
B.
18.  The main purpose of constructing a balance sheet is to
A.
B.
C.
D.
19.  Which of the following equations is found in a balance sheet of a public limited company?
A.
B.
C.
D.
20.  Money owed to other people or organisations are shown in a balance sheet as
A.
B.
C.
D.
21.  Hoopers Toys Ltd purchases goods at $10 000 and manages to sell these for $18 000. State the gross profit
A.
B.
C.
D.
22.  Expenses do not include
A.
B.
C.
D.
23.  _____________: An accounting statement that records the values of a business's assets, liabilities and shareholders' equity at one point in time
24.  Identify the key terms from the clues given
A. Opening stock PLUS purchases LESS closing stock
A.
B. Sales revenue LESS costs of goods sold
B.
C. Net profit LESS gross profit
C.
D. Net profit after tax and interest LESS dividends
D.
25.  Which of the following is not considered a fixed asset?
A.
B.
C.
D.
26.  The appropriation account does not show
A.
B.
C.
D.
27.  Ortega Clothing Company has expenses of $123 000 and a net profit of $321 000. Calculate the firm's gross profit
A.
B.
C.
D.
28.  Non-operating income does not include
A.
B.
C.
D.
29.  Expenses are the
A.
B.
C.
D.
30.  _____________: A financial obligation of a business that it is required to repay in the future
31.  Which of the following is a business not legally obliged to report?
A.
B.
C.
D.
32.  Which of the following items is not found in a balance sheet?
A.
B.
C.
D.
33.  The profit figure shown in a profit and loss account is an accurate estimate which may be revised at a later date
A.
B.
34.  Physical assets tend to depreciate over time. Which assets below do not generally follow this trend?
A.
B.
C.
D.
35.  _______________: The share of profits paid to shareholders as a return for investing in a company
36.  If a firm buys a delivery vehicle with cash, how will this be reflected in the balance sheet?
A.
B.
C.
D.
37.  The profit and loss account
A.
B.
C.
D.
38.  Which of the following would not be classifies as an expense in the profit and loss  account?
A.
B.
C.
D.
39.  Which statement about tangible assets is true?
A.
B.
C.
D.
40.  Sole traders and partnerships are not required by law to publish their final accounts publicly.
A.
B.
41.     Refer to the information below and calculate the firm's gross profit.
A.
B.
C.
D.
42.  Historic cost is the original price that a firm paid for the purchase of a fixed asset
A.
B.
43.  Identify the key terms from the clues given
A. Opening stock PLUS purchases LESS closing stock
A.
B. Net profit after tax LESS retained profit
B.
C. Sales revenue LESS costs of goods sold
C.
D. Gross profit LESS expenses
D.
44.  De Melo Consultancy uses the declining balance method to depreciate its fixed assets. The firm purchases computers worth $300 000 and uses a depreciation rate of 30%. The computers are expected to last five years before being replaced. What is the net book value of the computers after two years?
A.
B.
C.
D.
45.  Current assets do not include
A.
B.
C.
D.
46.  Which statement below cannot be applied to gross profit?
A.
B.
C.
D.
47.  Complete the missing figures from the accounts of Constance Curtains Ltd.
A. A
A.
B. B
B.
C. C
C.
D. D
D.
E. E
E.
48.  Publication of final accounts include all the following statements except
A.
B.
C.
D.
49.  Current assets do not include
A.
B.
C.
D.
50.  Work out the value of net profit from the following information
A.
B.
C.
D.
51.  _____________: Cash and other assets expected to be exchanged for cash or consumed within a year; e.g., inventories, accounts payable (debtors) and cash/bank balance
52.  Which of the following statements does not usually apply to fixed assets?
A.
B.
C.
D.
53.  ___________ = gross profit - overhead expenses
54.  Which of the following items does not appear in a profit and loss account?
A.
B.
C.
D.
55.  Net profit and operating profit are equal when there is an absence of which option below?
A.
B.
C.
D.
56.  Gross profit less expenses plus non-operating income gives
A.
B.
C.
D.
57.  Complete the missing figures from the accounts of Constance Curtains Ltd.
A. A
A.
B. B
B.
C. C
C.
D. E
D.
E. F
E.
58.  _____________: Total value of assets - total value of liabilities
59.  __________: Items of monetary value that are owned by the business
60.     Refer to the information below and calculate the firm's net profit.
A.
B.
C.
D.
61.  The three main business accounts are:  1. Income statement 2.  _______________     3. Cash-flow statement
62.  Which item appears in the balance sheet of a sole trader? 
A.
B.
C.
D.
63.  Three sections of an income statement:  1. _______ account 2. Profit and loss account 3. Appropriation account
64.  A firm could increase its gross profit by
A.
B.
C.
D.
65.  Net assets is calculated by
A.
B.
C.
D.
66.  _________________: The total value of sales made during the trading period = selling price x quantity sold
67.  All fixed assets depreciate over a long period of time
A.
B.
68.  The reducing balance method of depreciation reduces the value of an asset by a fixed amount of the book value of the asset
A.
B.
69.  Use the following information to work out the profit on ordinary activites before tax
A.
B.
C.
D.
70.  A business earns $200 000 in sales, has expenses of $80 000 and cost of goods sold are $90 000. What is the gross profit?
A.
B.
C.
D.
71.  Where is revenue earned from holding shares in other companies that have paid out dividends recorded?
A.
B.
C.
D.
72.  Identify the key terms from the clues given
A. Gross profit LESS expenses
A.
B. Net profit LESS gross profit
B.
C. Sales revenue LESS total costs of production
C.
D. Net profit after tax and interest LESS dividends
D.
73.  Assume that Pitarch Car Hire Co. bought a vehicle for $35 000 with an expected life of 4 years. Its residual value is estimated to be $7 000. Calculate the straight line depreciation per year.
A.
B.
C.
D.
74.  The three main business accounts are:  1. Income statement 2. Balance sheet       3. ____________
75.  Cash flow forecasts are historical statements showing the movement of cash in a business over time
A.
B.
76.  Three sections of an income statement:  1. Trading account 2.  ___________ account 3. Appropriation account
77.  Three sections of an income statement:  1. Trading account 2. Profit and loss account 3. __________ account
78.  On a profit and loss account, dividends represent
A.
B.
C.
D.
79.  Which of the following is most likley to be a long-term business liability?
A.
B.
C.
D.
80.     Refer to the information below and calculate the firm's total dividend payout to shareholders.
A.
B.
C.
D.
81.  The Trading Account gives details of
A.
B.
C.
D.
82.  De Melo Consultancy uses the declining balance method to depreciate its fixed assets. The firm purchases computers worth $300 000 and uses a depreciation rate of 30%. The computers are expected to last five years before being replaced. What would the annual depreciation charge be if the company had used the straight line depreciation method for the computers?
A.
B.
C.
D.
1 comment
83.  An increase in the value of certain fixed assets, sucha s land and buildings, is known as
A.
B.
C.
D.
84.  Capital expenditure can be determined via a balance sheet
A.
B.
85.  Capital employed does not include the calculation of
A.
B.
C.
D.
86.   _______________: The profit left after all deductions, including dividends, have been made. This is 'ploughed back' into the company as a source of finance
87.  The three main business accounts are:  1. Income statement 2.  _______________     3. Cash-flow statement
88.  Which of the following is not an intangible asset?
A.
B.
C.
D.
89.  Suppliers would be interested in the final accounts of a business in order to
A.
B.
C.
D.
90.  Suppose a firm has opening stock of $5 000, purchases of $6 000 and cost of goods sold at $8 000. What is the value of its closing stock?
A.
B.
C.
D.
91.  Which statement cannot be applied to goodwill?
A.
B.
C.
D.
92.  Net assets refers to the difference between a firm's total assets and its current liabilities
A.
B.
93.  Bank overdrafts and creditors are examples of current liabilities
A.
B.
94.  Slater Tiling Company has an opening stock of $35 000, a closing stock of $30 000, and has purchased stock during the year costing $95 000. Calculate the firm's cost of goods sold (COGS)
A.
B.
C.
D.
95.  Appreciation refers to an increase in the value of an asset over time
A.
B.
96.  Assume that equipment bought by a manufacturer costing $15 000 has a useful life of five years. Annual depreciation is charged at 40%. Calculate the book value of the asset after two years.
A.
B.
C.
D.
97.  _____________  = sales revenue less cost of sales
98.  Work out the value of net current assets from the information given
A.
B.
C.
D.
99.  In which final accounts would you find 'shareholders' funds'?
A.
B.
C.
D.
100.  The three main business accounts are:  1. ____________ 2. Balance sheet       3. Cash-flow statement
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