Future Business Leader Questions with Answers (100%
Correct Answers)
Which one of the special journals has only one column for recording dollar amounts?
A) Cash Payments Journal
B) Purchases Journal
C) Cash Receipts Journal
D) Sales Journal —Answer: B
Total assets are $19,500.00. Cash is paid for $1,500.00 of supplies. The total assets are now:
A) $18,000.00
B) $19,500.00
C) $22,500.00
D) $21,000.00 —Answer: B
The beginning of the year balances for Shaw Industries were: Assets $122,000, Liabilities
$69,000, and Equity $53,000. If the company purchased equipment costing $56,000 with $6,000
cash and incurred a note payable for the balance, by what amount did the equity section of the
Balance Sheet change as a result of this purchase?
A) $50,000
B) $ -0-
C) $6,000
D) $56,000 —Answer: B
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,The first step in the posting procedure is writing:
A) the entry amount in the Debit or Credit column of the account
B) the journal page number in the Post. Ref. column of the account
C) the entry amount for the balance
D) the entry date in the Date column of the account —Answer: D
The relationship between the market value per share and earnings per share of a stock is called
the:
A) par value
B) price-earnings ratio
C) earnings value
D) financial ratio —Answer: B
The purpose of the statement of cash flows is to?
A) Inventory Valuation
B) Net Income
C) Prove change in cash
D) Change in Owners Equity —Answer: C
Common stockholders will receive a dividend
A) Every year that profits exceed a stated amount.
B) In every year that the corporation is profitable.
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, C) Every year, whether the corporation is profitable or not.
D) In every year that the board of directors declares a dividend. —Answer: D
Evaluating financial statement information can be divided into broad categories including
A) Ratio analysis (expresses the relationship of one number to another number)
B) Vertical analysis (shows the relationship between numbers on a financial statement for one
year)
C) Horizontal analysis (compares financial statement amounts to amounts from previous years
in terms of the percentage of change)
D) All of the above —Answer: D
Your firm sells $530 of goods for cash; sales tax is 5 percent. How do you record this
transaction?
A) Debit the customer's account for $556.50 and credit sales for $556.50
B) Debit cash for $530; credit sales for $503.50 and credit sales tax payable for $26.50
C) Debit cash for $556.50; credit sales for $530 and sales tax payable for $26.50
D) Debit cash for $556.50 and credit sales for $556.50 —Answer: C
Which method of cash flows does FASB prefer?
A) Accrual method.
B) Indirect method.
C) Deferral method.
D) Direct method. —Answer: D
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Correct Answers)
Which one of the special journals has only one column for recording dollar amounts?
A) Cash Payments Journal
B) Purchases Journal
C) Cash Receipts Journal
D) Sales Journal —Answer: B
Total assets are $19,500.00. Cash is paid for $1,500.00 of supplies. The total assets are now:
A) $18,000.00
B) $19,500.00
C) $22,500.00
D) $21,000.00 —Answer: B
The beginning of the year balances for Shaw Industries were: Assets $122,000, Liabilities
$69,000, and Equity $53,000. If the company purchased equipment costing $56,000 with $6,000
cash and incurred a note payable for the balance, by what amount did the equity section of the
Balance Sheet change as a result of this purchase?
A) $50,000
B) $ -0-
C) $6,000
D) $56,000 —Answer: B
© 2025 All rights reserved
,The first step in the posting procedure is writing:
A) the entry amount in the Debit or Credit column of the account
B) the journal page number in the Post. Ref. column of the account
C) the entry amount for the balance
D) the entry date in the Date column of the account —Answer: D
The relationship between the market value per share and earnings per share of a stock is called
the:
A) par value
B) price-earnings ratio
C) earnings value
D) financial ratio —Answer: B
The purpose of the statement of cash flows is to?
A) Inventory Valuation
B) Net Income
C) Prove change in cash
D) Change in Owners Equity —Answer: C
Common stockholders will receive a dividend
A) Every year that profits exceed a stated amount.
B) In every year that the corporation is profitable.
© 2025 All rights reserved
, C) Every year, whether the corporation is profitable or not.
D) In every year that the board of directors declares a dividend. —Answer: D
Evaluating financial statement information can be divided into broad categories including
A) Ratio analysis (expresses the relationship of one number to another number)
B) Vertical analysis (shows the relationship between numbers on a financial statement for one
year)
C) Horizontal analysis (compares financial statement amounts to amounts from previous years
in terms of the percentage of change)
D) All of the above —Answer: D
Your firm sells $530 of goods for cash; sales tax is 5 percent. How do you record this
transaction?
A) Debit the customer's account for $556.50 and credit sales for $556.50
B) Debit cash for $530; credit sales for $503.50 and credit sales tax payable for $26.50
C) Debit cash for $556.50; credit sales for $530 and sales tax payable for $26.50
D) Debit cash for $556.50 and credit sales for $556.50 —Answer: C
Which method of cash flows does FASB prefer?
A) Accrual method.
B) Indirect method.
C) Deferral method.
D) Direct method. —Answer: D
© 2025 All rights reserved
