#1
Which financial statement summarizes a company's revenues and expenses over a specific period?
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
#2
Which inventory costing method assumes that the first units purchased are the first ones sold?
FIFO (First-In, First-Out)
LIFO (Last-In, First-Out)
Weighted Average
Specific Identification
#3
Which financial statement reflects a company's financial position at a specific point in time?
Income Statement
Statement of Cash Flows
Balance Sheet
Statement of Retained Earnings
#4
What is the primary purpose of the cash flow statement?
To show the company's financial position at a specific point in time
To report the company's revenues and expenses over a period
To provide information about the company's cash receipts and payments
To summarize the company's stockholders' equity
#5
What is the term for the total amount of money a company owes to its suppliers for goods and services purchased on credit?
Accounts Receivable
Accounts Payable
Cash Flow
Revenue
#6
In merchandising operations, what is the term for the cost of goods sold plus the ending inventory?
Gross Profit
Net Income
Operating Income
Gross Margin
#7
Which accounting principle requires that expenses be recorded in the same period as the related revenues?
Matching Principle
Revenue Recognition Principle
Consistency Principle
Materiality Principle
#8
What is the term for the excess of net sales over the cost of goods sold?
Net Income
Operating Income
Gross Profit
Net Profit Margin
#9
In double-entry accounting, what must happen to maintain the accounting equation (Assets = Liabilities + Equity)?
Debit an asset and credit a liability
Debit an asset and credit equity
Debit a liability and credit equity
Debit an asset and credit another asset
#10
What is the term for the total amount of money received from customers for goods or services sold?
Accounts Payable
Accounts Receivable
Cash Flow
Revenue
#11
Which inventory costing method assumes that the last units purchased are the first ones sold?
FIFO (First-In, First-Out)
LIFO (Last-In, First-Out)
Weighted Average
Specific Identification
#12
In a perpetual inventory system, when are the costs of goods sold (COGS) recorded?
At the end of the accounting period
At the beginning of the accounting period
When goods are purchased
When goods are sold
#13
What is the term for the process of transferring information from the journal to the ledger?
Journalizing
Posting
Balancing
Trial Balancing
#14
In the context of financial transactions, what does the term 'contra account' refer to?
An account with a normal credit balance
An account used to offset another account
An account with a normal debit balance
An account with no balance
#15
What is the primary purpose of a trial balance?
To ensure that debits equal credits
To prepare financial statements
To record adjusting entries
To calculate net income
#16
In merchandising, what is the formula for calculating the cost of goods sold (COGS)?
Beginning Inventory + Net Purchases - Ending Inventory
Net Sales - Gross Profit
Ending Inventory - Net Purchases + Beginning Inventory
Net Sales - Operating Expenses
#17
In accounting, what is the term for the process of allocating the cost of an intangible asset over its useful life?
Depreciation
Amortization
Impairment
Depletion
#18
What is the formula for calculating the gross profit margin?
(Net Sales - Cost of Goods Sold) / Net Sales
Net Income / Average Total Assets
Operating Income / Net Sales
Cost of Goods Sold / Net Sales
#19
In double-entry accounting, what is the term for the left side of an account?