Quiz On Simple Arithmetic

25 Questions

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Quiz On Simple Arithmetic

Take this ultimate challenging quiz on arithmetic trivia questions and check how much can you score!


Questions and Answers
  • 1. 
    When the LIFO method is used, ending inventory is assumed to consist of
    • A. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset.

    • B. 

      The oldest units

    • C. 

      The most recently purchased units

    • D. 

      Cash money

  • 2. 
    The Specific Identification method of inventory costing/valuation would most likely be used to identify
    • A. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset.

    • B. 

      Liabilities are increased.

    • C. 

      Automobiles at the car dealership.

    • D. 

      Lower of cost or market

  • 3. 
    When the market value of inventory items has declined below its cost, many companies apply which of the following inventory methods?
    • A. 

      Lower of cost or market

    • B. 

      Automobiles at the car dealership.

    • C. 

      Liabilities are increased.

    • D. 

      An arbitrary amount that exists to fulfill legal requirements.

  • 4. 
    When the FIFO method is used, ending inventory is assumed to consist of
    • A. 

      The cost of the treasury stock reduces stockholders' equity.

    • B. 

      The most recently purchased units

    • C. 

      Notes receivable result from a written promise to pay within a specified amount of time.

    • D. 

      Liabilities are increased.

  • 5. 
    Among the assets listed below, which is considered the most liquid?  LOOOL!!!! hahaha!!!!! naughtyeeeen!
    • A. 

      An arbitrary amount that exists to fulfill legal requirements.

    • B. 

      Cash

    • C. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset.

  • 6. 
    Which of the following statements is true?
    • A. 

      Notes receivable result from a written promise to pay within a specified amount of time

    • B. 

      Liquidity deals with a company's ability to pay its debts as they come due.

    • C. 

      An arbitrary amount that exists to fulfill legal requirements.

    • D. 

      Long-term liabilities include bonds, post-retirement benefits, and deferred income taxes.

  • 7. 
    In a bank reconciliation outstanding checks are
    • A. 

      Deducted from bank statement balance.

    • B. 

      Deducted from company's cash balance.

  • 8. 
    In a bank reconciliation bank services charges are
    • A. 

      deducted from bank statement balance.

    • B. 

      deducted from company's cash balance.

  • 9. 
    What is the distinguishing characteristic between accounts receivable and notes receivable?
    • A. 

      Notes receivable result from a written promise to pay within a specified amount of time.

    • B. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset

    • C. 

      Deducted from company's cash balance.

    • D. 

      Deducted from bank statement balance.

  • 10. 
    The two methods of accounting for bad debts are the
    • A. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset.

    • B. 

      Direct write-off method and the allowance method.

    • C. 

      Deducted from bank statement balance.

    • D. 

      Credit sales during the year

  • 11. 
    The following information is available from the accounting records of Lewis Company for 2006. Credit sales during the year                                $1,500,000, Accounts Receivable (12/31/06)                            $298,000, Allowance for Doubtful Accounts (12/31/06)           $27,000, Bad debt expense for the year                                $18,000, What amount will Lewis Company show on its year-end balance sheet for the Net Realizable Value of its accounts receivable?
    • A. 

      $271,000

    • B. 

      $750

    • C. 

      $37,500

    • D. 

      $20,000

  • 12. 
    The interest on a $25,000 note at 9% for 4 months 
    • A. 

      $750

    • B. 

      $271,000

    • C. 

      $37,500

    • D. 

      $20,000

  • 13. 
    Depreciation is a process by which
    • A. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset.

    • B. 

      The cost of the treasury stock reduces stockholders' equity

    • C. 

      Liquidity deals with a company's ability to pay its debts as they come due

    • D. 

      The most recently purchased units

  • 14. 
    Which ratio expresses the profits of a company on a per share basis?
    • A. 

      Earnings per share

    • B. 

      Liquidity deals with a company's ability to pay its debts as they come due

    • C. 

      Current value

    • D. 

      Total stockholders' equity stays the same.

  • 15. 
    All of the following are depreciated except
    • A. 

      Land

    • B. 

      Current value

  • 16. 
    To measure depreciation for a plant asset, all of the following must be known except
    • A. 

      Current value

    • B. 

      Note payable, due in 3 years

    • C. 

      The cost of a new office copy machine

    • D. 

      2.31 to 1

  • 17. 
    Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated useful life of 4 years.  It is to be depreciated using thestraight-line method.  What is the amount of depreciation for the first full year?
    • A. 

      $20,000

    • B. 

      $271,000

    • C. 

      $37,500

    • D. 

      $750

  • 18. 
    • A. 

      $37,500

    • B. 

      $20,000

    • C. 

      $750

    • D. 

      $271,000

  • 19. 
    Equipment with a cost of $68,000 was purchased on January 1, 2006.  The equipment has an estimated residual value of $4,000 and an estimated useful life of 8 years.  What is the depreciation expense for 2006 if the business uses the double-declining-balance method?
    • A. 

      $750

    • B. 

      $20,000

    • C. 

      $17,000

    • D. 

      2.31 to 1

  • 20. 
    On January 2, 2006, XYZ Company sold a machine for $3,000.  The machine cost $8,500, and had accumulated depreciation of $5,200 at the time of sale. What gain or loss will be reported on the income statement for the sale of the machine?
    • A. 

      Current value

    • B. 

      Land

    • C. 

      Note payable, due in 3 years

    • D. 

      Loss of $300

  • 21. 
    Which of the following accounts is not classified as a current liability?
    • A. 

      Note payable, due in 3 years

    • B. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset

    • C. 

      Land

    • D. 

      Current value

  • 22. 
    If current assets amount to $150, total assets $350, current liabilities $65, and total liabilities $100, then the current ratio is
    • A. 

      Note payable, due in 3 years

    • B. 

      Lower of cost market

    • C. 

      The most recently purchased units

    • D. 

      2.31 to 1

  • 23. 
    A contingent liability may include all of the following except
    • A. 

      Lower of cost market

    • B. 

      The cost of a new office copy machine

    • C. 

      The cost of plant and equipment is allocated to expense over the time periods which benefit from the use of the asset

    • D. 

      The most recently purchased units

  • 24. 
    If a company has an inventory turnover of 6, approximately how long does it take to sell inventory?
    • A. 

      The cost of a new office copy machine

    • B. 

      2.31 to 1

    • C. 

      60 days

    • D. 

      Note payable, due in 3 years

  • 25. 
    A business reports $250,000 for Equipment and $150,000 for Accumulated Depreciation-Equipment on its Balance Sheet.  What is the book value of the equipment?
    • A. 

      $100,000

    • B. 

      $17,000

    • C. 

      $20,000

    • D. 

      $750