Accounting for IGCSE & O level - Final Statements (Section 4)
1
Which of the following costs is included in inventory valuation?
Απάντηση(D)
Both purchase price and freight-in costs
2
Which section of the financial statement gives the most information about a firm's solvency and financial position?
Απάντηση(D)
Statement of financial position
3
What is included in the trading account?
4
What is the accounting equation?
Απάντηση(B)
Assets = Liabilities + Equity
5
Which of the following would increase owner's equity?
Απάντηση(C)
Additional investments by the owner.
6
Which financial statement reports a company's financial performance over a period of time?
7
What is a trial balance primarily used for?
Απάντηση(C)
Verifying the accuracy of the accounting records
8
What type of account is "Accounts Payable"?
9
Which of the following is NOT included in non-current assets?
10
What information does the income statement provide?
11
Απάντηση(B)
Sales minus the cost of goods sold.
12
What does the term 'net assets' mean?
Απάντηση(A)
Total assets less total liabilities
13
What does the trading account determine?
14
Which of the following is the formula for calculating net assets?
Απάντηση(A)
Capital Employed - Non-Current Liabilities
15
Which of the following is included in the right-hand side of a horizontal statement of financial position?
16
What does the term 'drawings' refer to in accounting?
Απάντηση(B)
Money taken by the owner for personal use.
17
What can cause a gross loss?
Απάντηση(B)
The cost of goods sold exceeds the sales revenue.
18
Απάντηση(C)
Assets that will be converted to cash within the next accounting year.
19
Which of the following transactions would *decrease* a company's working capital?
Απάντηση(C)
Purchasing inventory on credit
20
Why is it important to have a good inventory management system?
21
Which formula is used to determine the gross profit?
22
Απάντηση(C)
Something the company owes.
23
If you own a home which category does the home fall under?
24
What information is typically found in an inventory record?
25
In business, what generates profit?
26
What happens to returned goods by customers?
27
How can a business improve the profit margin?
28
Which of these amounts is used to find the cost of sales?
29
What does the income statement help business owners assess?
Απάντηση(B)
The profitability of the business.
30
Which method is used to value inventory to determine what gets matched to COGS?
31
What is the purpose of the balance sheet?
32
What do we need to adjust to find the net sales?
Απάντηση(B)
Total sales minus sales returns
33
Which of the following are considered in the trading account?
34
Which type of expenses reduces the gross profit?
35
What is typically the first item listed in the income statement?
36
What does an income statement show?
Απάντηση(B)
The results of business operations.
37
What will the profit for the year do?
Απάντηση(D)
Increase both net assets and capital.
38
If a business has negative working capital, what does this indicate?
Απάντηση(B)
The business has more current liabilities than current assets.
39
A business with positive working capital has ______ current assets than current liabilities.
40
Which of the following would be classified as a current liability?
41
What is a key characteristic of non-current assets?
Απάντηση(A)
They are expected to be used for more than one accounting period.
42
What is the 'matching principle' in accounting?
Απάντηση(A)
Matching revenue with the same period's expenses.
43
What is shown in the sales account?
44
Which of the following is the definition of liabilities?
Απάντηση(B)
The amount of money owed to external creditors
45
What is the main advantage of using a point-of-sale (POS) system for inventory management?
Απάντηση(B)
It provides real-time inventory tracking and updates.
46
What is closing inventory?
Απάντηση(C)
Goods which are unsold at the end of the year.
47
What does the term 'liquid assets' refer to?
Απάντηση(A)
Assets that can be converted to cash quickly.
48
What financial statement summarizes a company's financial performance over a period?
49
What will contribute in the cost of sales and gross profit for that year?
50
What is another name for net profit?
