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 current asset?

 Cash
 Accounts receivable
 Inventory
 Property, plant, and equipment

3) 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

 $1,000 credit in current liabilities; $1,000 debit in non-current assets
 $1,000 credit in non-current liabilities; $1,000 debit in current assets
 $1,000 credit in non-current liabilities; $1,000 debit in non-current assets

4) Which of the following is true about the accrual concept?

 It requires companies to recognize revenues and costs as the business

receives or pays the actual cash for them
 It requires companies to recognize revenues and costs as the business
incurs them
 The cash flow statement records transactions when the business incurs
them
 Profits on the income statement equals the closing cash flow on the
cash flow statement

5) In Quickbooks, an Invoice has what effect on the Balance Sheet?

 Increase to Cash and decrease to Account Payable

 Increase to Cash and increase to Account Receivable
 Increase to Accounts Receivable and increase to Income
 Increase to Accounts Receivable and decrease to Equity
6) In Quickbooks, a Bill has what effect on the following accounts?

 Debit to Accounts Receivable

 Credit to Accounts Receivable
 Debit to Accounts Payable
 Credit to Accounts Payable

7) Where can you find a company’s total accrued interest as of a certain date?

 Profit and Loss Statement

 Statement of Cash Flows
 Balance Sheet
 Statement of Owner’s Equity

8) A company buys a vehicle with a loan. To record the transaction:

 Debit Cash
 Debit Fixed Assets
 Debit Automobile Expense
 Debit Loan Payable

AND

 Credit Cash
 Credit Fixed Assets
 Credit Automobile Expense
 Credit Loan Payable

9) At the end of a year, a company's net income increased 30%. At the end of
the second year, the income decreased 25% from the previous year. What
was the percentage change for the two years?

 Decrease 2.5%
 Increase 2.5%
 Decrease 5%
 Increase 5%
10) Company A is looking into four potential projects and will accept them if the IRR is
10% or above, as shown in cell E2. What is the formula used in cell C2, which can be
copied down to cell C3 through C5, to generate the results shown below?

 =IF(B2>=E2,"Accept","Reject")
 =IF(B2>$E2,"Accept","Reject")
 =IF(B2>=E$2,"Accept","Reject")
 =IF(B2>$E$2,"Accept","Reject")