Wyrnkaa - Chapter 3 Review Questions

10 Questions

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Accounting Quizzes & Trivia

This quiz will test your understanding of the material covered in the third chapter of "What You Really Need to Know About Accounting". Visit http://www. Notforaccountants. Com/learning-tools. Php for more quizzes.


Questions and Answers
  • 1. 
    • A. 

      Assets, Expenses, and Equity

    • B. 

      Assets, Equity, and Net Cash

    • C. 

      Assets, Accounts Payable, and Retained Earnings

    • D. 

      Assets, Liabilities, and Equity

  • 2. 
    • A. 

      Something your business owns

    • B. 

      Something your business owes

    • C. 

      Both a & b

    • D. 

      Neither a nor b

  • 3. 
    Net Income is shown on the:
    • A. 

      Balance Sheet

    • B. 

      Income Statement

    • C. 

      Net Cash Statement

    • D. 

      Net Accrual Statement

  • 4. 
    The "statement of what you've got" is the:
    • A. 

      Balance Sheet

    • B. 

      Income Statement

    • C. 

      Statement of Cash Flows

    • D. 

      Statement of Retained Earnings

  • 5. 
    The "statement of what you've earned" is the:
    • A. 

      Balance Sheet

    • B. 

      Income Statement

    • C. 

      Statement of Cash Flows

    • D. 

      Statement of Retained Earnings

  • 6. 
    The Income Statement is made up primarily of:
    • A. 

      Cash and Expenses

    • B. 

      Revenue and Expenses

    • C. 

      Gains and Expenses

    • D. 

      Losses and Expenses

  • 7. 
    The Income Statement and Balance Sheet utilize:
    • A. 

      The Cash basis of accounting

    • B. 

      The Net Receipts basis of accounting

    • C. 

      The Gross Income basis of accounting

    • D. 

      The Accrual basis of accounting

  • 8. 
    Accrual basis accounting seeks to match:
    • A. 

      Revenues with the Expenses used to generate those Revenues

    • B. 

      Cash inflows with Cash outflows

    • C. 

      Revenues with Cash inflows

    • D. 

      Expenses with Cash Outflows

  • 9. 
    The Statement of Cash Flows shows:
    • A. 

      How much operating income a business has earned

    • B. 

      How well a business is managing its overhead

    • C. 

      How a business generated and used cash

    • D. 

      How many assets a business has

  • 10. 
    The Statement of Cash Flows shows cash from:
    • A. 

      Current Activities, Discontinued Activities, and Future Activities

    • B. 

      Primary Activities, Secondary Activities, and Discontinued Activities

    • C. 

      Financing Activities, Net Income, and Net Liabilities

    • D. 

      Operating Activities, Investing Activities, and Financing Activities