MBA Accounting and Financial Statements — practice questions
22 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice MBA Accounting and Financial Statements in the app →A clerk records each day's sales and payments in a routine ledger. That routine work is:The three main accounting elements were defined in the late 15th century by:Cash, equipment and buildings a firm owns are its:What a firm owes to its creditors is recorded as its:Total investment in a firm minus its liabilities is called owners' equity, also known as:You open a shop with 10,000 in cash and no debt. Owners' equity at that moment is:You then borrow 10,000 from a bank. Your total assets become:That bank loan is entered as a liability of 10,000, keeping the equation balanced. This method is called:The process running from a business transaction through to the finished report is the accounting:Assets a firm can turn into cash quickly are classed as:Machinery a bakery uses in production for more than a year is recorded under:A patent or copyright a firm owns is recorded as an:Debts a firm must pay within a year of the balance sheet date are:Profits kept in the business since it started, rather than paid out, are called:The total expense of buying or producing what a firm sells is the:Net sales minus the cost of goods sold gives:Salaries and commissions paid to salespeople and the cost of advertising fall under:Cash a firm generates from producing and selling its goods appears under cash flow from:Cash movements tied to debt and equity funding appear under cash flow from:A lender divides a firm's current assets by its current liabilities. That measure is the:The same ratio worked out after leaving inventory out is called the:Net profit divided by net sales gives the net profit margin, also called: