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Standard 5 2

The document contains a 20 question quiz on financial accounting concepts related to the income statement, balance sheet, and statement of cash flows. It tests understanding of key terms like assets, liabilities, equity, revenues, expenses, and the accounting equation. It also contains practice problems calculating financial statement values and missing figures.

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64 views6 pages

Standard 5 2

The document contains a 20 question quiz on financial accounting concepts related to the income statement, balance sheet, and statement of cash flows. It tests understanding of key terms like assets, liabilities, equity, revenues, expenses, and the accounting equation. It also contains practice problems calculating financial statement values and missing figures.

Uploaded by

api-518240809
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Revision of financial statements

Name:____________________________

Mark:
/60
1. A business spent $30 000 to purchase raw materials. This activity should be
categorised as
A. operating activities
B. financing activities
C. investing activities

2. In a cash flow statement, which activity is a cash inflow?


A. credit sales
B. sales return
C. Interest from investments
D. purchases of non-current assets

3. A company spent $400 000 to purchase land to build its future warehouse. This
activity is
A. An investing activity
B. An operating activity
C. A financing activity

4. Which one of the following activities is a cash outflow?


A. Payments of wages
B. Sales
C. Gross profit
D. Sales of non-current assets

5. Which one of the following terms is a current asset?


A. building
B. land
C. stock
D. machinery

6. A company spent $300 000 to repay a short-term loan. It is an example of


A. current liabilities
B. non-current liabilities
C. owner’s equity
D. current assets
7. A financial statement which shows how cash flows in and out of a company during a
given time period is known as a(n)
A. statement of cash flows
B. statement of retained earnings
C. balance sheet
D. income statement

8. Which financial statement tells whether a company made or lost money in a given
time period?
A. Statement of Cash Flows
B. Balance Sheet
C. Statement of Retained Earnings
D. Income Statement

9. The following are all found in the Income Statement except for __________?
A. Revenues
B. Expenses
C. Fixed Assets
D. Net income

10. A Balance Sheet has 4 sections: (1) heading; (2) assets; (3) liabilities, and (4)
___________________.
A. debits
B. credits
C. account titles
D. owner's equity

11. Balance Sheet Equation is:


A. Assets = Liabilities + Shareholder’s Equity
B. Liabilities –Shareholders Equity = Assets
C. Assets + Shareholders Equity = Liabilities

12. Keith Manich deposited $5,000 in a bank account he established for a pet store that
he is going to own and operate as KM's Pets. Recording the deposit will
A. increase an asset, increase a liability
B. decrease an asset, decrease a liability
C. increase an asset, increase owner's equity
D. decrease an asset, decrease owner's equity

13. If during the accounting period the assets increased by $5,000, and the owner's
equity increased by $1,000, then the liabilities must have
A. increased by $6,000
B. increased by $4,000
C. decreased by $4,000
D. decreased by $6,000

14. If a company record its acquisition of another company in the cash flow statement,
this activity should be grouped in
A. Financing activities
B. Operating activities
C. Investing activities
D. Purchasing activities

15. Which one of the following terms is an intangible asset?


A. Buildings
B. Land
C. Cash on hand
D. Logo

16. Which one of the following terms refers to non-current liabilities?


A. Mortgage
B. Credit card debts
C. Bank overdrafts
D. Payroll taxes payable

17. In a balance sheet, machinery is a


A. Non-current asset
B. Current asset
C. Current liability
D. Non-current liability

18. In an income statement, cost of goods sold is equal to


A. Opening stock – closing stock
B. Opening stock + closing stock – purchases
C. Opening stock + purchases
D. Opening stock + purchases – closing stock

19. In a cash flow statement, credit sales are


A. Cash inflows
B. Cash outflows
C. Cash deficit
D. None of the above
20. When a business is liquid, it means
A. It has cash available to meet payments as they are due.
B. It shows a net profit in the income sheet.
C. The liabilities and owner’s equity increase in value.
D. The gross profit is larger than the total expenses.

/20

21. Write down the equation for cost of goods sold (COGS):

______________________________________________________________ (2)

22. Calculate the missing figures for the following table

COGS Opening stock Purchases Closing stock


30 000 ① 100 000 20 000

② 30 000 80 000 10 000

40 000 5 000 ③ 1 000

/5

23. Calculate the missing figures for the cash flow statement

Cash flow statement for a small business


January February March April May
$ $ $ $ $

Opening cash 1 000 0


balance 2. 5. 8.
Cash inflows 1 000 2 000 4 000 5 000 3 000
Cash outflows 2 000 4 000 1 000 1 000 2 000
Net cash (1 000) (2000)
increase/deficit 3. 6. 9.
Closing cash 0
balance 1. 4. 7. 10.

/10
24. Write down the equation of the balance sheet below:

__________________________________________________________________ (2)

25. Calculate the miss figures in the table.


Assets Liabilities Owner’s equity
200 000 45 000
53 000 100 000
342 000 200 000

/5
26. Use the information below to construct an income statement for Sathya’s
Skatehouse for year ended 30 June 2019

$ $
Revenue from cash sales 500 000 Closing stock 20 000
Purchases for the period 50 000 Telephone 15 000
Salesperson’s wages 80 000 Rates 3 500
Insurance 2 000 Revenue from credit sales 50 000
Opening stock 100 000 Depreciation 4 000
Rent 20 000 Electricity 2 100
Advertising costs 10 000 Water 3 500
Interest costs 2 500 Lease costs (machinery) 5 500

Title: income statement for year ended 30 June 2019


$ $
Revenues from sales
Revenues from cash sales 500 000
1. _____________________ ___________
Less cost of goods sold (COGS) 16.___________
2. _____________________ ___________
3. _____________________ ___________
4. _____________________ ___________ 17.___________
Gross profits 18.___________
Less expenses
5. ______________________ ___________
6. ______________________ ___________
7. ______________________ ___________
8. ______________________ ___________
9. ______________________ ___________
10. ______________________ ___________
11. ______________________ ___________
12. ______________________ ___________
13. ______________________ ___________
14. ______________________ ___________
15. ______________________ ___________ 19.___________

Net profit 20.___________

/20

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