Basic Arithmetic Quiz

30 Questions | Total Attempts: 229

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Arithmetic Quizzes & Trivia

Can you answer all these simple questions about basic arithmetic? Let's prove yourself now!


Questions and Answers
  • 1. 
    Which of the following groups would be considered an internal user of financial statements?
    • A. 

      Stockholders

    • B. 

      Factory managers supervising production line workers for Westinghouse

    • C. 

      Assets = Liabilities + Owners' Equity

    • D. 

      FASB (Financial Accounting Standards Board).

  • 2. 
    Which of the following would be classified as external users of financial statements?
    • A. 

      Factory managers supervising production line workers for Westinghouse

    • B. 

      Stockholders

    • C. 

      FASB (Financial Accounting Standards Board).

    • D. 

      Assets = Liabilities + Owners' Equity

  • 3. 
    The accounting equation can be stated as
    • A. 

      Assets = Liabilities + Owners' Equity

    • B. 

      Stockholders

    • C. 

      FASB (Financial Accounting Standards Board).

    • D. 

      Provide information for decision making

  • 4. 
    The organization primarily responsible for setting accounting principles (GAAP) today is the:
    • A. 

      Stockholders

    • B. 

      Assets = Liabilities + Owners' Equity

    • C. 

      Provide information for decision making

    • D. 

      FASB (Financial Accounting Standards Board).

  • 5. 
    Which of the following is the primary objective of financial reporting?
    • A. 

      Provide information for decision making

    • B. 

      Factory managers supervising production line workers for Westinghouse

    • C. 

      Stockholders

    • D. 

      Assets = Liabilities + Owners' Equity

  • 6. 
    You are a banker and Phillip Morris, Inc., a tobacco company, has given you its most recent annual report in an effort to get a sizeable loan. The company is very profitable and appears to have a sound financial position. Based on a report presented on prime-time television last night, you are aware the company is a defendant in lawsuits from several states and by other parties that have been adversely impacted by cigarettes. The information presented on television is an example of financial information that is
    • A. 

      to those willing to spend the time to understand it.

    • B. 

      Relevant

    • C. 

      Accounts receivable

    • D. 

      Provide information for decision making

  • 7. 
    The preparation of financial statements require that the information be understandable
    • A. 

      to those willing to spend the time to understand it.

    • B. 

      Relevant

    • C. 

      Provide information for decision making

    • D. 

      Factory managers supervising production line workers for Westinghouse

  • 8. 
    Which of the following items is reported as a current asset on a classified balance sheet?
    • A. 

      Provide information for decision making

    • B. 

      to those willing to spend the time to understand it.

    • C. 

      Accounts receivable

    • D. 

      Relevant

  • 9. 
    Working capital is defined as
    • A. 

      current assets minus current liabilities.

    • B. 

      to those willing to spend the time to understand it.

    • C. 

      Relevant

    • D. 

      Accounts receivable

  • 10. 
    If Sales equal $357,000, Cost of Goods Sold equals $218,000, and Operating Expenses equal $98,000, what is Gross Profit?
    • A. 

      $139,000.

    • B. 

      current assets minus current liabilities.

    • C. 

      $15,000.

    • D. 

      to those willing to spend the time to understand it.

  • 11. 
    If total assets were $50,000 and total liabilities were $35,000, then stockholders' equity would be
    • A. 

      $139,000.

    • B. 

      $15,000.

    • C. 

      Accounts receivable

    • D. 

      to those willing to spend the time to understand it.

  • 12. 
    The financial statement that lists the revenues and expenses is referred to as the
    • A. 

      Income Statement.

    • B. 

      Accounts receivable

    • C. 

      $139,000.

    • D. 

      satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

  • 13. 
    One of the purposes of the notes to financial statements is to
    • A. 

      $15,000.

    • B. 

      $139,000.

    • C. 

      satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

    • D. 

      Income Statement.

  • 14. 
    Although businesses engage in a wide variety of activities, all of these activities can be categorized into three types. These three types of business activities are
    • A. 

      operating, financing, and investing.

    • B. 

      Accounts receivable

    • C. 

      Building a manufacturing plant

    • D. 

      Income Statement.

  • 15. 
    Which of the following is an investing activity of a business?
    • A. 

      Income Statement.

    • B. 

      Selling stock to investors

    • C. 

      satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

    • D. 

      Building a manufacturing plant

  • 16. 
    Which of the following is a financing activity of a business?
    • A. 

      Selling stock to investors

    • B. 

      Building a manufacturing plant

    • C. 

      Assets increase and owners' equity increases

    • D. 

      Assets increase and owners' equity increases

  • 17. 
    Which of the following is an operating activity of a business?
    • A. 

      Selling product for cash

    • B. 

      Assets increase and owners' equity increases

    • C. 

      Building a manufacturing plant

    • D. 

      A debit

  • 18. 
    Bart invested $15,000 in his business.  How does this affect the accounting equation?
    • A. 

      Factory managers supervising production line workers for Westinghouse

    • B. 

      Provide information for decision making

    • C. 

      to those willing to spend the time to understand it.

    • D. 

      Assets increase and owners' equity increases

  • 19. 
    Services are provided for customers and they are sent bills for the amount they owe.  How does this affect the accounting equation?
    • A. 

      to those willing to spend the time to understand it.

    • B. 

      Assets increase and owners' equity increases

    • C. 

      $15,000.

    • D. 

      $139,000.

  • 20. 
    An entry made to the left side of an account is called
    • A. 

      A debit

    • B. 

      operating, financing, and investing.

    • C. 

      Income Statement.

    • D. 

      satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

  • 21. 
    An entry made to the right side of an account is called a
    • A. 

      satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

    • B. 

      Income Statement.

    • C. 

      operating, financing, and investing.

    • D. 

      Credit

  • 22. 
    The process of recording the economic effects of business transactions in a book of original entry is called
    • A. 

      Accounts receivable; accounts payable

    • B. 

      Journalizing

    • C. 

      A double-entry system

    • D. 

      operating, financing, and investing.

  • 23. 
    The system of accounting in which there are at least two accounts affected in every transaction so that the accounting equation stays in balance is called
    • A. 

      A double-entry system

    • B. 

      Journalizing

    • C. 

      A list of accounts and their balances (used to prove the equality of debits and credits).

    • D. 

      Accounts receivable; accounts payable

  • 24. 
    A trial balance is
    • A. 

      Accounts receivable; accounts payable

    • B. 

      Objective; verifiable.

    • C. 

      A double-entry system

    • D. 

      A list of accounts and their balances (used to prove the equality of debits and credits).

  • 25. 
    If the business has an _________ from a customer, then the customer has an ________ to the business
    • A. 

      Objective; verifiable.

    • B. 

      A list of accounts and their balances (used to prove the equality of debits and credits).

    • C. 

      Accounts receivable; accounts payable

    • D. 

      earned; when the costs are incurred.