BUSINESS 150 EXAM 4 UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
Question:
1. Richard Fidler, CPA is auditing the books of a business.
Audits are performed to ensure that financial statements
have been prepared according to_________.
Answer:
Generally accepted accounting principles
Question:
2. Divyansh works as an accountant. His job entails
generating financial statements and report for
stakeholders of his company. Divyansh is a _________
Answer:
Financial Accountant
Question:
3. As you study for your accounting class exam you find
that another name for the statement of financial position
is the _________________
Answer:
Balance Sheet
Question:
4. Tracy is reviewing the balance sheet for her business. She
notices that to be ordered correctly the accounts should
be__________________
Answer:
Assets, Liabilities, owner's equity
Question:
5. Francois is creating a balance sheet for his chocolate
shops. He knows he must list his assets in order of
liquidity. Which of the following assets would Francois list
first?
Answer:
Cash
, Question:
6. Bond furniture's accountant has prepared an __________ for
the company. It is a summary of the firms revenues and
expenses during a specified accounting period, such as a
year
Answer:
Income Statement
Question:
7. Apples has decided to issue new stock to expand its
facilities. Where would the receipt of cash from the sales
appear on the statement of cash flow
Answer:
Cash flows from financing activities
Question:
8. Swenson's has several locations and determines that
three are not profitable. Swenson's sells the facilities to a
new business. The money swenson's receives from this
sale will be found in the _______ section of the statement of
cash flow.
Answer:
Cash Flows from investing activities
Question:
9. Asher is evaluating his financial statement to determine
profitability. He creates a ratio by dividing net income
after taxes by net sales.This is known as the __________ Ratio
Answer:
Return on sales(Profit Margin)
Question:
10. Inventory turnover is calculated by dividing the
________________ by the average inventory
Answer:
Cost of good sales
AND CORRECT ANSWERS
Question:
1. Richard Fidler, CPA is auditing the books of a business.
Audits are performed to ensure that financial statements
have been prepared according to_________.
Answer:
Generally accepted accounting principles
Question:
2. Divyansh works as an accountant. His job entails
generating financial statements and report for
stakeholders of his company. Divyansh is a _________
Answer:
Financial Accountant
Question:
3. As you study for your accounting class exam you find
that another name for the statement of financial position
is the _________________
Answer:
Balance Sheet
Question:
4. Tracy is reviewing the balance sheet for her business. She
notices that to be ordered correctly the accounts should
be__________________
Answer:
Assets, Liabilities, owner's equity
Question:
5. Francois is creating a balance sheet for his chocolate
shops. He knows he must list his assets in order of
liquidity. Which of the following assets would Francois list
first?
Answer:
Cash
, Question:
6. Bond furniture's accountant has prepared an __________ for
the company. It is a summary of the firms revenues and
expenses during a specified accounting period, such as a
year
Answer:
Income Statement
Question:
7. Apples has decided to issue new stock to expand its
facilities. Where would the receipt of cash from the sales
appear on the statement of cash flow
Answer:
Cash flows from financing activities
Question:
8. Swenson's has several locations and determines that
three are not profitable. Swenson's sells the facilities to a
new business. The money swenson's receives from this
sale will be found in the _______ section of the statement of
cash flow.
Answer:
Cash Flows from investing activities
Question:
9. Asher is evaluating his financial statement to determine
profitability. He creates a ratio by dividing net income
after taxes by net sales.This is known as the __________ Ratio
Answer:
Return on sales(Profit Margin)
Question:
10. Inventory turnover is calculated by dividing the
________________ by the average inventory
Answer:
Cost of good sales
