The Financial Statements! Ultimate Trivia Quiz

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Quizzes Created: 3 | Total Attempts: 3,322

Questions: 10 | Attempts: 1,809 | Updated: Mar 22, 2023

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The Financial Statements! Ultimate Trivia Quiz - Quiz

The financial statements ultimate trivia quiz. There are different types of financial statements prepared by accountants and each of them is designed to explain position of the company when it comes to different topics. Do you know some of the components or how to create a cash flow statement, income statement or balance sheet from different transactions? Do get to refresh your memory by tackling the quick quiz. All the best!

Questions and Answers

1.

Which of the following income/expense will not show up on the Cash Flow Statement?
- A.
  
  Purchase of Goods
- B.
  
  Sale of Equipment
- C.
  
  Dividends
- D.
  
  Depreciation
Correct Answer
D. Depreciation

Explanation
Depreciation is a non-cash expense that represents the decrease in value of an asset over time. It is deducted from the value of the asset on the balance sheet, but it does not involve any actual cash outflow. Therefore, depreciation does not affect the cash flow of a company and will not show up on the Cash Flow Statement.

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0
1
2.

Which statements will LTB affect?
- A.
  
  Income Statement
- B.
  
  Balance Sheet
- C.
  
  Cash Flow
- D.
  
  All of the above
Correct Answer
D. All of the above

Explanation
The correct answer is "All of the above." LTB, which stands for Long-Term Borrowing, will affect all three financial statements: the Income Statement, Balance Sheet, and Cash Flow. Long-term borrowing involves obtaining funds that are expected to be paid back over a period of more than one year. This will impact the Income Statement as it will include interest expense related to the borrowing. It will also affect the Balance Sheet by increasing liabilities and potentially impacting the company's debt-to-equity ratio. Lastly, it will impact the Cash Flow statement as it will involve cash inflows from the borrowing and cash outflows from the repayment of the loan.

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3.

What does COGS stand for?
- A.
  
  Cost of Great Sales
- B.
  
  Cost of Goods Sold
- C.
  
  Creation of Gross Sales
- D.
  
  Control of Goods Sold
Correct Answer
B. Cost of Goods Sold

Explanation
COGS stands for Cost of Goods Sold. This term refers to the direct costs incurred in producing or acquiring the goods that a company sells. It includes the cost of raw materials, labor, and any other expenses directly related to the production or acquisition of goods. By calculating the COGS, a company can determine the cost of producing each unit of goods sold and analyze its profitability.

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4.

Shipped COGS + Adjustments/Other Std Costs = Standard Costs
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The given statement is true. Shipped COGS (Cost of Goods Sold) represents the cost of producing and delivering goods to customers. Adjustments/Other Std Costs refer to any additional costs or adjustments made to the standard costs. Standard Costs are the predetermined costs that a company expects to incur for producing a product or providing a service. Therefore, the equation "Shipped COGS + Adjustments/Other Std Costs = Standard Costs" is accurate.

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5.

Costs which are not tied directly to a PID are:
- A.
  
  Non Material Spend
- B.
  
  Not Materially Special
- C.
  
  Non Manufacturing Spend
- D.
  
  Non Material Spaces
Correct Answer
A. Non Material Spend

Explanation
Non Material Spend refers to costs that are not directly related to a PID (Product Identification). These costs are not associated with the physical materials used in the manufacturing process. Examples of non material spend could include expenses related to marketing, advertising, research and development, administrative costs, or overhead costs. These costs are necessary for the overall operation of the business but do not directly contribute to the production of a specific product.

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6.

Balance Sheet Equation is:
- A.
  
  Balance Sheet Equation is:
- B.
  
  Assets = Liabilities + Shareholder’s Equity
- C.
  
  Liabilities –Shareholders Equity = Assets
- D.
  
  Assets + Shareholders Equity = Liabilities
Correct Answer
B. Assets = Liabilities + Shareholder’s Equity

Explanation
The correct answer is Assets = Liabilities + Shareholder's Equity. This equation represents the fundamental accounting principle that states that a company's total assets must be equal to the sum of its liabilities and shareholder's equity. Assets are the resources owned by the company, liabilities are the company's debts or obligations, and shareholder's equity represents the owners' claim on the company's assets. By maintaining this equation, a company ensures that its financial statements accurately reflect its financial position.

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7.

The Last Time Buy (LTB), which is EOL components purchased from suppliers, the process was instituted in:
- A.
  
  May 2007
- B.
  
  May 2009
- C.
  
  March 2009
- D.
  
  March 2007
Correct Answer
D. March 2007

Explanation
The Last Time Buy (LTB) process, which involves purchasing End-of-Life (EOL) components from suppliers, was instituted in March 2007.

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8.

Statement of Cash flows includes cash receipts and cash purchases.
- A.
  
  True
- B.
  
  False
Correct Answer
A. True

Explanation
The statement of cash flows is a financial statement that shows the sources and uses of cash in a company during a specific period. It includes cash receipts, which are inflows of cash from various activities such as sales, investments, or borrowing, and cash purchases, which are outflows of cash for expenses, investments, or debt repayments. Therefore, the given statement that the statement of cash flows includes cash receipts and cash purchases is true.

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9.

Bookings are recorded on the Income Statement.
- A.
  
  True
- B.
  
  False
Correct Answer
B. False

Explanation
Bookings are not recorded on the Income Statement. The Income Statement, also known as the Profit and Loss Statement, shows the revenues, expenses, and net income or loss of a company over a specific period. Bookings, on the other hand, refer to the number of reservations or orders received by a company. While bookings may be an important metric for tracking sales activity, they are not directly recorded as revenue on the Income Statement. Instead, revenue is recognized when the goods or services are delivered or rendered to the customer. Therefore, the statement "Bookings are recorded on the Income Statement" is false.

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10.

Reval/Buydown is
- A.
  
  The expense associated with negotiated cost savings with suppliers as well as revaluation of inventory
- B.
  
  The expense associated with variance in CM manufacturing cycle
- C.
  
  The revenue associated with purchase order adjustments
- D.
  
  The expense associated with BoM adjustments
Correct Answer
A. The expense associated with negotiated cost savings with suppliers as well as revaluation of inventory

Explanation
The correct answer is the expense associated with negotiated cost savings with suppliers as well as revaluation of inventory. This means that when a company negotiates lower costs with its suppliers or revalues its inventory, it incurs expenses related to these activities. These expenses can include any additional costs incurred during the negotiation process or any adjustments made to the value of the inventory based on market conditions.

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Current Version
Mar 22, 2023

Quiz Edited by
ProProfs Editorial Team
Apr 20, 2011

Quiz Created by
Cvcm_finance

The Financial Statements! Ultimate Trivia Quiz

Which of the following income/expense will not show up on the Cash Flow Statement?

Which statements will LTB affect?

What does COGS stand for?

Shipped COGS + Adjustments/Other Std Costs = Standard Costs

Costs which are not tied directly to a PID are:

Balance Sheet Equation is:

The Last Time Buy (LTB), which is EOL components purchased from suppliers, the process was instituted in:

Statement of Cash flows includes cash receipts and cash purchases.

Bookings are recorded on the Income Statement.

Reval/Buydown is