Accounting assessment test for employment

Accounting Test Assess Your Knowledge On Accounting …

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Estimated Reading Time: 3 mins
Published: May 07, 2018
1. The Statement of Profit and Loss is also called the* Balance Sheet. Income Statement. Statement of Cash Flows. Statement of Financial Position.
2. Which of the following is not a type of cash flows shown in the Cash Flow Statement?* Operating cash flow. Investing cash flow. Accounting cash flow. Financing cash flow.
3. Which of the following is not a current asset?* Cash. Accounts receivable. Inventory. Property, plant, and equipment.
4. What are the effects on the balance sheet when a company borrows a two-year bank loan of $1,000?* $1,000 credit in current liabilities; $1,000 debit in current assets.
5. What happens to the balance sheet when a company makes sales of $500, of which $300 is paid in cash and $200 is sold on credit?* $300 debit in cash; $200 debit in accounts receivable; $500 credit in retained earnings.
6. What happens to the balance sheet when a company pays salaries of $5,000?* $5,000 credit in cash; $5,000 debit in accounts payable. $5,000 credit in cash; $5,000 debit in retained earnings.
7. Which of the following is the correct formula to calculate operating income?* Operating income = Revenue - Direct operating cost. Operating income = Revenue - Indirect operating cost.
8. Given the following Balance Sheet extract, calculate the net profit on the Income Statement. (Assuming tax rate = 10% of operating profit)* 37 25 21 33.
9. Company A used $3,000 worth of office supplies this year but the costs were not paid for until next year. Which of the following is not a result of this transaction?*
10. Company B purchased an equipment for $600. The equipment has a useful life of 4 years and a scrap value of $50 at the end of year 4. What is the depreciation expense for year 1 (using straight line method)?*

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