1.
The process of entering all transactions from the journal to ledger is called
A
Posting
B
Entry
C
Accounting
D
None of the above
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The process of entering all transactions from the journal to ledger is called
Posting
Entry
Accounting
None of the above
The accounts that records expenses, gains and losses are
Personal accounts
Real accounts
Nominal accounts
None of the above
What is the main purpose of financial accounting?
Organize financial information
Keep track of company expenses
Minimize company taxes
Provide useful, financial information to outsiders
Which of the following is not an asset?
Motor Vehicle
Loan to buy Equipment
Building
Computer
Lower the Debt Equity ratio
Lower the protection to creditors
Higher the protection to creditors
It does not affect creditors
None of the above
The measure of how efficiently the assets resources are employed by the firm is called
Liquidity ratio
Leverage ratios
Activity ratios
Profitability ratios
The ratios that refer to the ability of the firm to meet the short term obligations out of its short term resources
Liquidity ratio
Leverage ratios
Activity ratios
Profitability ratios
Any written evidence in support of a business transaction is called
Journal
Ledger
Ledger posting
Voucher
Following is (are) the characteristic(s) of a budget
It outlines projected activities
Expressions are made in quantitative terms
It is for a fixed period
All of the above
Which of the following would not be found on a standardized balance sheet?
Inventory
Accruals and Deferred Income
Extraordinary Charges
Creditors due and payable after more than one year
Which financial statement uses the expanded accounting equation?
Income statement
Balance sheet
Cash flow statement
Statement of stockholders equity
Which financial statement displays the revenues and expenses of a company for a period of time?
Income Statement
Balance Sheet
Cash Flow Statement
Statement of Stackholders Equity
A Low Return on Investment Ratio (ROI) indicates
Improper utilization of resources
Over investment in assets
Both A and B
None of the above
The account format that displays debits, credits, balances, and headings.
General journal
General ledger
T-account
Ledger account
which EC directive standardized the form of accounts to which financial reports for external users must conform?
First
Second
Eighth
Fourth
Which account increases equity?
Expenses
Withdrawals
Treasury stock
Revenues
The accrual basis of accounting records revenues when they are:
Earned
Collected
Contracted
Readily available for use
A contra asset account has what type of balance?
Debit
Credit
Contra
All of the above
Asset accounts have what type of balance?
Debit
Credit
Contra
All of the above
Real accounts records
Dealings with creditors or debtors
Dealings in commodities
Gains and losses
All of the above