Essential Accounting Principles and Financial Analysis Quiz
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Accounting Principles and Financial Analysis Practice
The accounting equation can be expressed in all of the following ways except: LIABILITIES = ASSETS + OWNER’S EQUITY
The financial statements, in the order in which they are prepared, are: INCOME STATEMENT, RETAINED EARNINGS, BALANCE SHEET, AND CASH FLOW.
An account, in its simple form, is made up of which parts? A TITLE, A DEBIT SIDE, AND A CREDIT SIDE
Every transaction affects at least two accounts. The purchase of land in exchange for cash is recorded with which of the following entries? DEBIT TO LAND AND CREDIT TO CASH
A credit may represent a: INCREASE IN LIABILITY ACCOUNT
A prepaid expense, such as the purchase of insurance for an upcoming period, is initially recorded in the accounting system as an: ASSET
Websavy paid the electric and gas bill for the month in the amount of $325. What is the entry to record this transaction? DEBIT UTILITIES EXPENSE, CREDIT CASH
The accounting concept that supports reporting revenues in the period in which they are earned is called the ______ concept: REVENUE RECOGNITION
An adjusting entry always affects: AT LEAST ONE INCOME STATEMENT ACCOUNT AND ONE BALANCE SHEET ACCOUNT
Expense items that have been incurred but not yet recorded in the accounts are: ACCRUED EXPENSES
The balance in Carlos Company’s supplies account on December 31 is $3,000. If the supplies used during the year were $750, what is the entry to adjust the supplies account at the end of the year? DEBIT TO SUPPLIES EXPENSE, $750; CREDIT TO SUPPLIES, $750.
Which of the following is true regarding the flow of data from the Adjusted Trial Balance columns of the end-of-period spreadsheet to the financial statements? THE BALANCE OF THE CAPITAL STOCK ACCOUNT WILL FLOW INTO THE BALANCE SHEET
Which account would appear in the post-closing trial balance? SALARIES PAYABLE
In the sequence of accounting cycle steps, which step follows the preparation of the adjusted trial balance? FINANCIAL STATEMENTS ARE PREPARED
When there is a net loss, the entry to close Income Summary will include a: DEBIT TO RETAINED EARNINGS ACCOUNT
When we compare each item in a financial statement with a total amount from the same statement to analyze relationships within it, we’re talking about: VERTICAL ANALYSIS
When each item on a current financial statement is compared with the same item on an earlier statement, we’re talking about: HORIZONTAL ANALYSIS
What is the current ratio for a merchandising company that has the balances from the following table? CURRENT RATIO: 3.31
What is the ratio of Net Sales to Assets for the company of Q18? RATIO OF NET SALES TO ASSETS: 1.23
What is the ratio of Liabilities to Stockholders’ Equity for the company of Q18 & 19? RATIO OF LIABILITIES TO STOCKHOLDERS’ EQUITY: 2.47