Wyrnkaa - Chapter 3 Review Questions
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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.
- 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.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
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