Wyrnkaa - Chapter 3 Review Questions

10 Questions | By Nfapublishing | Updated: Mar 20, 2022 | Attempts: 96

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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.

What are the three sections of the Balance Sheet?
- A.
  
  Assets, Expenses, and Equity
- B.
  
  Assets, Equity, and Net Cash
- C.
  
  Assets, Accounts Payable, and Retained Earnings
- D.
  
  Assets, Liabilities, and Equity
2.

What is an Asset, in simple terms?
- 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