Accounting Deck Flashcards
Which of the following is NOT one of the primary financial statements?
A Balance Sheet
B Liabilities Statement
C Cash Flows Statement
D Income Statements
B
Which of the following financial statements is reported as of a specific date (as opposed to over a period of time)?
A Balance Sheet
B Income Statement
C Retained Earnings Statement
D Cash Flows Statement
A
Which of the following is NOT a component of the Cash Flows Statements?
A Operating Cash Flows
B Investing Cash Flows
C Financing Cash Flows
D Production Cash Flows
D
Which of the following is correct regarding the Balance Sheet Equation?
A Assets = Liabilities + Shareholders’ Equity
B Assets + Liabilities = Shareholders’ Equity
C Assets = Liabilities – Shareholders’ Equity
D Assets – Liabilities = Shareholders’ Equity
A
Which of the following is an example of an ASSET?
A Prepaid Rent
B Retained Earnings
C Accounts Payable
D Common Stock
A
Each of the follow is a component of Contributed Capital EXCEPT:
A Preferred Stock
B Additional Paid-In Capital
C Bonds Payable
D Common Stock
C
Which statement regarding the differences between Revenues and Gains is correct?
A Revenues are short-term and Gains are long-term
B Revenues are long-term and Gains are short-term
C Revenues relate to core business activities while Gains do not
D Revenues do not relate to core business activities but Gains do
C
An increase to non-cash operating assets has what affect on Cash Flows from Operations?
A No effect
B Increase to Cash Flow from Operations
C Decrease to Cash Flow from Operations
D Unable to determine based on the above information
C
All of the following are considered Financing Cash Flows EXCEPT:
A Dividend Payment
B Issue Common Stock for Cash
C Pay off existing Debt
D Purchase of Investment Securities
D
Of the following accounts, which is likely to be listed first on a Balance Sheet?
A Accounts Receivable
B Common Stock
C Cash
D Accounts Payable
C
Which of the following statements correctly identifies when assets are considered “current”?
A It is expected to be received within a year or operating cycle
B It is expected to be used up or converted to cash within a year or operating cycle
C It must be paid within a year or operating cycle
D It was used up within the past year or operating cycle
B
Which of the following equations accurately defines operating income?
A Revenues – Expenses + Gains – Losses
B Revenues – Expenses
C Revenues + Gains
D Revenues only
B
What is subtracted from Net Income to arrive at the change in Retained Earnings?
A Dividends paid
B Dividends declared
C Dividends payable
D Dividends received
B
How is Net Increase (Decrease) in Cash calculated from the Statement of Cash Flows?
A Operating Cash Flows – Investing Cash Flows – Financing Cash Flows
B Operating Cash Flows – Investing Cash Flows + Financing Cash Flows
C Operating Cash Flows + Investing Cash Flows – Financing Cash Flows
D Operating Cash Flows + Investing Cash Flows + Financing Cash Flows
D
Which of the following organizations is currently responsible for setting accounting standards in the United States?
A Accounting Principles Board
B Committee on Accounting Procedures
C Financial Accounting Standards Board
D Securities and Exchange Commission
C
What is the primary purpose of Accounting Standards Codification by the FASB?
A Organize accounting standards by number rather than topic
B Increase the number of accounting standards
C Decrease the number of accounting standards
D Organize accounting standards by topic rather than number
D
International Financial Reporting Standards are currently set by which organization?
A International Accounting Standards Committee
B International Accounting Standards Board
C International Financial Reporting Committee
D International Financial Reporting Board
B
Which of the following statements is correct regarding the accounting standards currently use in the United States?
A Companies must use US GAAP
B Companies may use either US GAAP or IFRS
C Companies may use GAAP from any recognized country around the world
D Companies must use IFRS
A
How many countries currently permit or require financial reporting under IFRS?
A Approximately 10
B Approximately 50
C Approximately 75
D Over 100
D
What is the formula for calculating contribution margin?
A Unit variable cost – unit revenue
B Unit revenue – unit variable cost
C Unit fixed cost – unit variable cost
D Unit revenue – unit fixed cost
B
What is the formula for breakeven point?
A Fixed cost/contribution margin
B Variable cost/contribution margin
C Contribution margin/fixed cost
D Contribution margin/variable cost
A
A company has total fixed cost of $10,000 and revenues per unit of $16. If the breakeven point is 4,000 units, what is the variable cost per unit?
A $2.50
B $9.00
C $12.25
D $13.50
D
ABC Company sells shoes and desires to have a profit of $75,000. If the sale price per pair of shoes is $100, the variable cost per pair of shoes is $30, and the total fixed cost is $315,000, how many pairs of shoes must ABC company sell?
A 3,429 pairs
B 4,500 pairs
C 5,572 pairs
D 8,000 pairs
C
If a company can produce multiple products on its production line, which product should it produce first?
A The product with the highest sale price
B The product that the company can produce the most of
C The product with the lowest cost per unit
D The produce with the highest contribution margin per unit of production
D
