::: vuaskari.com ::: FIN621 Online Quiz#4 Lecture# 1 to 34 January 13, 2012

Assalamu Alaykum Warahmatullahi WaBarakatuhu,

 

Which of the following is NOT a qualitative characteristic of financial statements?

Select correct option:

Understandability

Relevance

Full disclosure  

Comparability

 

 

Statement of cash flows helps the investors and other stake holders to assess:

Select correct option:

The ability to generate future cash flows

The liquidity of the business

Ability to pay cash dividends in the future

All of the given options  

 

 

The year in which long term assets are expected to be mature, will be transfer to _______________section of the balance sheet.

Select correct option:

Current asset 

Deferred asset

Current liabilities

Fixed assets

 

 

Inventory accounts should be classified in which section of a balance sheet?

Select correct option:

Current assets 

Investments

Property, plant, and equipment

Intangible assets

 

 

A company has interest expense of Rs. 35,000, its accrued liabilities are increased by Rs. 7000. Calculate the cash payments for the interest.

Select correct option:

Rs. 28,000  

Rs. 42,000

Rs. 30,000

Rs. 18,000

 

 

The appropriate journal entry to record equipment depreciation expense would consist of a debit to Depreciation Expense and a credit to which of the following accounts?

Select correct option:

Revaluation asset

Accumulated Depreciation: Equipment  

Retained Earnings

Cash

 

 

Which of the following would be considered a cash-flow item from an "operating" activity?

Select correct option:

Cash outflow to the government for taxes  

Cash outflow to shareholders as dividends

Cash inflow to the firm from selling new common equity shares

Cash outflow to purchase bonds issued by another company

 

 

End product of the accounting cycle is known as the__________

Select correct option:

Tax return

Financial statements  

Auditor's annual report

Annual general meeting

 

 

Which of the following company would like to use the accelerated depreciation method?

Select correct option:

A company with large tax burdens  

A company with low tax burdens

A company that want to report high net income

A company that want to report huge assets

 

 

Which of the following is an inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation?

Select correct option:

FIFO  

LIFO

Specific identification

Weighted-average

 

 

Which of the following is the most common adjusting entry?

Select correct option:

Un-earned revenue

Pre-paid expense

Depreciation expense  

Accrued revenue

 

 

The balances of opening and closing accounts receivable are Rs. 40,000 and 15,000 respectively what would be the value of cash received from customer if the net sales are 45,000.

Select correct option:

Rs. 85,000

Rs. 60,000

Rs. 70,000   

Rs. 100,000

 

 

Which of the following is the adjustment that is added during the reconciliation of net income to operating cash flows in indirect method?

Select correct option:

An increase in Accounts Receivable

An increase in Prepaid Expenses

Gain on sale of capital assets

Amortization Expense  

 

 

In financial statement analysis, an increasing capital stock account tends to be a sign of which of the following?

Select correct option:

Weak financial health

Insolvency

Economic health  

High liquidity

 

 

Closing entries result in net income being calculated in the income summary account and then transferred to which of the following account?

Select correct option:

Revenue account

Common Stock account

Dividends account

Retained Earnings account  

 

 

 

In the period of inflation, which of the following method will result in the greatest value of ending inventory?

Select correct option:

First in first out method  

Last in first out method

Weighted average cost method

Just in time method

 

 

Opinion of the auditor is termed as unqualified when the auditor concludes the following points about the financial statements except:

Select correct option:

Presented fairly and unbiased

Free from misleading information

Consistency in the accounting policies

Balance sheet showing sound position 

 

 

 

Which of the following is the third step of accounting cycle?

Select correct option:

Preparing financial statements

Preparing trial balance

Posting  

Making adjusting entries

 

 

A complete set of financial statements for Hartman Company, at December 31, 2007, would include each of the following, EXCEPT:

Select correct option:

Balance sheet as at December 31, 2007

Income statement for the year ended December 31, 2007

Statement of projected cash flows for 2008  

Notes containing additional information that is useful in interpreting the financial statements

 

 

 

When cash flow statement is prepared by using indirect method, which part of it is different from the direct method?

Select correct option:

Cash flow from investing activities

Cash flow from financing activities

Cash flow from operating activities 

All parts are same in both methods

 

 

--
We say, "Be one as Pakistani Nation and grow up for Pakistan's Future". Wish you all the best. Join www.vuaskari.com,
To post to this group, send email to vuaskari_com@googlegroups.com
Visit these groups:
This (Main) Group:http://groups.google.com/group/vuaskari_com?hl=en?hl=en
MIT/MCS Group: http://groups.google.com/group/vu_askarimit?hl=en?hl=en
HRM Group: http://groups.google.com/group/askari_hrm?hl=en?hl=en
Banking Group: http://groups.google.com/group/askari_banking?hl=en?hl=en
Management: https://groups.google.com/group/vuaskari_mgt?hl=en
Marketing: https://groups.google.com/group/vuaskari_mkt?hl=en
MIS Group: http://groups.google.com/group/askari_mis?hl=en