Accounting 101

Economic resources controlled by a company are reported in the financial statements as

• assets

• liabilities

• equity

• expenses

What is the ending date of a financial year in Australia?

• April 30

• June 30

• July 1

• December 31

Cost accounting is a form of

• financial accounting

• management accounting

EBIT may also refer to as

• revenue

• net income after tax

• gross profit

• operating income

Which of the ratio would you use to evaluate the liquidity of a company?

• Debt ratio

• Asset turnover ratio

• Current ratio

• Gearing ratio

Which of the following is NOT a financial report in a company's annual report?

• Balance sheet

• Budgeted income statement

• Cashflow statement

• Statement of profit and loss

The tax rate for large companies in Australia is generally

• 10%

• 30%

• 50%

• There is no corporate tax in Australia.

Which of the following activity is NOT reported in a cashflow statement?

• Accounting activity

• Operating activity

• Investing activity

• Financing activity

Which of the following is contra-asset account?

• Depreciation account

• Accumulated depreciation account

• Fixed asset account

• Land account

Which of the following stakeholder would be an appropriate user of management accounting reports?

• Investor

• Creditor

• Manager

• Customer