ID number Name: Multiple choice questions-2 points per question 1) Following item is NOT tangible asset: a) House b) Machinery c) Material d) Car 2) EAT is a) Net profit b) Operating profit c) Gross profit 3) Financial accounting provides information mainly for a) external users and therefore is regulated more strictly compared to managerial accounting b) internal users and therefore is regulated more strictly compared to managerial accounting c) external users and therefore is regulated less strictly compared to managerial accounting d) internal users and therefore is regulated less strictly compared to managerial accounting 4) Which operation will always lead to cash increase ? a) Purchase of material b) Bond issue c) Depreciation of assets d) Increase of net income 5) CCC can be shortened by quicker repayment of LT debt a) b) can be shortened by quicker repayment of trade payables c) can be prolonged by quicker repayment of LT debt d) can be prolonged by quicker repayment of trade payables Activity ratios are mainly aimed at a) 6) effectiveness of the production b) ability to pay interest profitability ability to repay short term debt c) d) Balance sheet always presents financial position of an entity At the year end Over specified period At a given date In December 7) a) b) c) d)