Financial Accounting Test 1

10 Questions | Total Attempts: 1070

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Financial Accounting Test 1

This Quiz is to test your accounting information, its an advanced questions. After you finish, you will review your answers before submit and then you will get your result with analysis & correct answer. Financial Accounting Test 2:https://www. Proprofs. Com/quiz-school/story. Php? Title=financial-accounti ng-test-2All the best. Best Regards,,,Yassir [email protected] Comhttps://kw. Linkedin. Com/pub/yassir-derbas-cma-candidate/67/616/940


Questions and Answers
  • 1. 
    What is the basic principle for measuring inventories ?
    • A. 

      Inventories shall be measured at the lower of cost and value in use.

    • B. 

      Inventories shall be measured at the lower of fair value and value in use.

    • C. 

      Inventories shall be measured at the lower of fair value and net realizable value.

    • D. 

      Inventories shall be measured at the lower of cost and net realizable value.

  • 2. 
    • A. 

      In the statement of other comprehensive income as an increase in equity.

    • B. 

      In the statement of profit or loss as a financial expense.

    • C. 

      In the statement of other comprehensive income as a decrease in equity.

    • D. 

      In the statement of profit or loss as other operating expense.

  • 3. 
    Increase in trade receivables during 20X1 represents USD 14,280. It includes the unrealized foreign exchange gain amounting to USD 1,460 as at 31 December 20X1. What amount shall be presented as an adjustment for non-cash item in the operating part?
    • A. 

      (1,460)

    • B. 

      1,460

    • C. 

      0

    • D. 

      12,820

  • 4. 
    Which of the following financial statements provides information about economic resources and claims on those resources?
    • A. 

      Income Statements

    • B. 

      Balance Sheet

    • C. 

      Cash Flow

    • D. 

      All of the Above

  • 5. 
    A provision is:
    • A. 

      A liability of uncertain timing or amount.

    • B. 

      A possible obligation arising from past events.

    • C. 

      A present obligation arising from past events.

    • D. 

      A liability of uncertain timing, amount and settlement.

  • 6. 
    Why does a Balance Sheet balance (assets = liabilities + equity)?
    • A. 

      It is required by law.

    • B. 

      Companies force it to balance.

    • C. 

      Accounting is a double-entry system of equal debits and credits.

    • D. 

      Auditors make adjustments to make it balance.

  • 7. 
    The primary financial statements that are forecast:
    • A. 

      Income statement only.

    • B. 

      Retained earnings and cash flow.

    • C. 

      Balance sheet and trial balance.

    • D. 

      Income statement, balance sheet, and cash flow.

  • 8. 
    All of the Financial statements preparing over accrual basis
    • A. 

      True

    • B. 

      False

  • 9. 
    A company acquired a vehicle for total cost of USD 20,000 and plans to depreciate it over 4 years. The company assumes that after 4 years, vehicle will be sold for USD 1,000. Calculate the depreciation expense for the third year on a sum of years digit (SYD) basis.
    • A. 

      3800

    • B. 

      6000

    • C. 

      5700

    • D. 

      2375

  • 10. 
    Dividends paid for the year would appear in which of the following sections of the cash flow statement?
    • A. 

      Operating section.

    • B. 

      Investing section.

    • C. 

      Financing section.

    • D. 

      It would not appear on the statement.