Accounting for IGCSE & O level - Final Statements (Section 5)
1
What is the effect of closing inventory on the income statement?
Trả lời
(A)
Decreases cost of goods sold
2
If a company has a lot of inventory, which could be one of the consequences?
Trả lời
(C)
May become obsolete
3
What is the net realizable value?
Trả lời
(B)
Estimated selling price less any additional costs
4
Which one reduces the owner's equity?
Trả lời
(B)
Drawings
5
What are the most important financial statements?
Trả lời
(D)
All of the above
6
What items will appear on a departmental income statement?
Trả lời
A
B
C
7
What is the term for goods remaining at the end of the accounting period?
Trả lời
(C)
Closing inventory
8
Which formula can be used to calculate profits or losses?
Trả lời
(A)
Gross Profit - Total Expenses
9
What is the effect of purchase returns in the calculation of cost of goods sold?
Trả lời
B
C
10
Which of the following is a measure of how quickly and easily current assets can be converted into cash?
Trả lời
(B)
Liquidity
11
The statement of financial position is also known as?
Trả lời
(A)
Balance sheet
12
Profit for the year will have which effect on the net assets and capital of the business?
Trả lời
(B)
Increase both.
13
What is the book value equal to?
Trả lời
(B)
Original price - accumulated depreciation
14
What is an example of non-current liability?
Trả lời
(C)
Commercial Bank Loan
15
What is the difference between the assets and the liabilities?
Trả lời
(A)
Owner's Equity
16
Which of the following is an example of an intangible asset?
Trả lời
(C)
Goodwill
17
The rule for valuing inventories is that they should be valued at the lower of their cost or net realisable value. This rule is a practical application of which accounting principle?
Trả lời
(C)
Prudence
18
What do we understand by 'Current Assets'?
Trả lời
(C)
Those assets that will be used up relatively quickly within the next accounting year.
19
Which of the following are examples of non-current assets?
Trả lời
A
C
20
Which of the following is a method to value inventory?
Trả lời
(D)
All of the above
21
Where should be a single horizontal income statement be based?
Trả lời
(B)
Business A and B
22
Which of the following is NOT a method of allocating expenses to different departments?
Trả lời
(D)
Proportion to the bank loan
23
What do financial statements aim to present?
Trả lời
(C)
A fair representation of a company's financial performance and position.
24
What impact do carriage inwards charges have on the cost of purchases?
Trả lời
(B)
Increase the cost of purchases.
25
Where are sales revenues recorded?
Trả lời
(B)
In the Income Statement
26
Which of the following is a characteristic of current assets?
Trả lời
(B)
They are expected to be converted to cash within one year or the operating cycle, whichever is longer.
27
What is the second part of an income statement also known as?
Trả lời
(B)
Profit and Loss Account
28
Which of these items would increase the net profit for the year?
Trả lời
(C)
Decrease in expenses.
29
What does the term "net sales" mean?
Trả lời
(A)
Gross sales minus sales returns and allowances.
30
What does "net sales" mean?
Trả lời
(B)
Sales revenue less sales returns.
31
Which of the following is included in the cost of goods available for sale?
Trả lời
(B)
Opening inventory
32
How do drawings affect capital?
Trả lời
(B)
Decrease capital
33
Which of the following is typically NOT considered an asset?
Trả lời
(D)
Accounts payable
34
Which of the following would increase the owner's equity?
Trả lời
(C)
Profit
35
Which is an example of an expense?
Trả lời
(B)
Salary
36
When is it wise to sell non-current assets?
Trả lời
(D)
All of the above
37
Which of the following would decrease owner's equity?
Trả lời
(C)
Withdrawals by the owner.
38
Which of the following will the business need to include in the income statement?
Trả lời
A
B
C
39
What is the main purpose of a profit and loss account?
Trả lời
(B)
To calculate profit for the year.
40
Which of the following is an example of a running cost or expense?
Trả lời
(C)
Advertising and Marketing Costs
41
What impact does profit have on the capital account?
Trả lời
(B)
Increases capital
42
Which accounting principle is being applied by valuing inventories at the lower of their cost or net realisable value?
Trả lời
(C)
Conservatism
43
What can the analysis of a departmental income statement identify?
Trả lời
A
B
C
44
Which account(s) will be used to determine the gross profit?
Trả lời
A
B
45
How can the business increase its profit?
Trả lời
(B)
By increasing their selling prices.
46
Which of the following is an example of a current asset?
Trả lời
(C)
Accounts Receivable
47
What is the relationship between assets, liabilities, and owner's equity?
Trả lời
(A)
Assets = Liabilities + Owner's Equity
48
What impact would a business buying stock have on its working capital?
Trả lời
(C)
No impact
49
What is a bank overdraft classified as in the statement of financial position?
Trả lời
(C)
Current liability
50
What does the text state is the result of the three different inventory valuation methods?
