Multiple Choice Questions Raw materials and merchandise purchased can be included in (two possible alternative answers) (a)

Question:

Multiple Choice Questions
Raw materials and merchandise purchased can be included in (two possible alternative answers)
(a) Cash
(b) Expenses
(c) Fixed assets
(d) Current assets
(e) None of these
2 Obtaining a long-term loan (debt) affects which of the following accounts
(a) Operating liabilities
(b) Financial liabilities
(c) Shareholders’ equity
(d) Retained earnings
(e) None of these
3 Land, buildings, furniture and computers are included in
(a) Current assets
(b) Fixed assets
(c) Cash
(d) Inventory
(e) None of these
4 The document reporting all the expenses and revenues for a given period is the
(a) Statement of financial position
(b) Statement of cash flows
(c) Income statement
(d) Notes to Statement of changes in equity
(g) None of these
5 In the periodic inventory system, the change in inventories of raw materials is equal to
(a) Beginning inventory minus
(b) minus Beginning inventory
(c) (Beginning inventory þ )/2
(d) None of these
6 Retained earnings represent
(a) Cash available for future investments
(b) Dividends distributed to shareholders
(c) Earnings not distributed
(d) None of these
7 Advance cash payments received from customers are included in
(a) Revenues
(b) Assets
(c) Liabilities
(d) Shareholders’ equity
(e) Expenses
(f) None of these
8 Advance cash payments to suppliers are included in
(a) Revenues
(b) Assets
(c) Liabilities
(d) Shareholders’ equity
(e) Expenses
(f) None of these
9 The depreciation recorded in the includes
(a) Only accumulated depreciation recognized in previous years
(b) Only the depreciation expense for the current year
(c) Both (a) and (b)
(d) None of these
10 An example of an item that is not a current asset is
(a) Inventory
(c) Equipment
(d) Cash
(f) None of these
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