Financial Accounting Quiz

Which statement(s) records the "credit purchase of material purchased"?

• Income statement

• Cash-flow statement

• Income statement and Cash-flow statement

• None of the above

Which activity records the "interest on investment"?

• Financing

• Investing

• Operating

• None

Which statement record the "interest on loan"?

• Income statement

• Cash-flow statement

• None

• Both

Match the following

• Revenue < Expense

• Profit

• Revenue-Expense

• Cash deficit

• Revenue > Expense

• Net profit

• Cash inflow < Cash outflow

• Cash Surplus

• Cash inflow > Cash outflow

• Loss

What is the effect on Asset/Liability/Owner's Equity for "Interest received by investment"?

• Increase in Asset

• Decrease in Liability

• Increase in Owner's Equity

• No change

Which of the following is considered a Non-Cash item?

• Loan repayment

• GST received

• Credit purchase of materials

• Interest on investment

If the business obtains a loan from bank, the cash will ​ (a)   due to a cash ​ (b)   . The profit will ​ (c)   because it is ​ (d)  

• increase
• decrease
• not change
• inflow
• outflow
• not recorded as a revenue
• a revenue increase

Which Activity records the "Interest on loan"?

• Operating

• Financing

• Investing

• None

What will be recorded in the Owner's equity under Balance Sheet:

​ (a)   ​ (b)   ​ (c)  

• Drawings
• Capital Contribution
• Net profit
• Account receivables
• Inventory of materials
• GST settlement
• Loan
• office furniture

Which activity records the "office furniture"

• Financing

• Operating

• Investing

• None