O&SM 3rd set of questions
Financial Knowledge Quiz
Test your understanding of financial concepts with our comprehensive quiz designed to challenge your knowledge! Whether you're a beginner or an expert, this quiz covers key topics in accounting, liabilities, and assets.
- 25 Engaging Questions
- Multiple Choice Format
- Immediate Feedback on Your Answers
Which of the following is a Non-Current Asset?
Prepayments
Cash
Inventory
A motor vehicle
Which of the following is a Non-Current Liability?
Bank overdraft
A long term loan from the bank
Accrual
Insurance prepaid by the business
Which of the following is defined as ‘capital’ expenditure?
Plant and machinery costing £5,000
Light and heat of £4,000
Inventory costing £800
None of the above
Which of the following is NOT a part of the Cost of Sales?
Purchases
Opening inventory
Sales
Closing inventory
The Net Book Value of a non-current asset is equal to
Cost less current years depreciation
Cost of the asset
Cost less accumulated depreciated
Depreciation
ACME Accessories trial balance showed a cost of €40,000 for fixtures and fittings at 31December 2012. The fixtures and fittings are being depreciated on a straight line basis at 20% per annum. Calculate the depreciation charge to the income statement for the year ended 31 December 2012.
£1,500
£2,000
£4,000
£8,000
Which one of the following is used to calculate the profit of a business?
A cashflow statement
The statement of financial position
The income statement
None of the above finical statements
Payments are
Payments made for services but the services have not been received at the year end.
Unpaid amounts for services at the year end
Bad debts
None of the above
Working capital is equal to
Current liabilities less current assets
Non current assets less non current liabilities
Current assets less non current assets
Current assets less current liabilities
If a business has total current assets amounting to €40,000 which includes inventory of €10,000, and has current liabilities amounting to €5,000, what is the acid test ratio?
1 times
7 times
6 times
None of the above
The liquidity ratios of a business
Measures the company performance
Measures the solvency of the business
Measures the efficiency of management of the business
Measures the total assets of the business
If the trade payables shown in the statement of financial position of a business are €5,000 and the purchases shown in the income statement are €150,000, calculate the trade payables ratio:
3 days
6 days
12 days
15 days
The current ratio is calculated as follows
Current assets/ current liabilities
Current assets less closing inventory/current liabilities
Current assets less non current assets
Current liabilities/current assets
Assuming that the total current assets of a business were €3,000 and the current liabilities were €500. The Working Capital amounts to:
£1,500
£500
£2,500
£3,500
Which of the following is a current asset
A motor vehicle
Cash
Accrual for wages
Bank overdraft
Which of the following is a current liability ?
Business premises
Insurance prepaid by the business
Bank overdraft
A long term loan from the bank
The income statement of the business shows:
Income, assets and owners equity
Income and expenditure
Income and assets
Assets, liabilities and owners equity
The financial statements of a business are made up of:
An income statement and a statement of financial position.
A trial balance and income statement
A statement of financial position and a trial balance
Statement of financial position only
Which of the following is NOT a qualitative characteristic of financial information?
Relevance
Reliability
Matching
Comparability
Which of the following is defined as ‘revenue’ expenditure?
Purchase of a new van of £10,000
Plant & machinery repairs costing £500
Proceeds arising from the sale of a building
None of the above
Which of the following is used to calculate the gross profit of a business?
The income statement
The statement of financial position
The cashflow statement
None of the above financial statements
If a current ratio 2:1 and the current assets were €40,000, the current liabilities amounted to:
£60,000
£80,000
£20,000
None of the above
The gross profit margin is calculated as follows
Sales/gross profit
Gross profit/sales x 100
Gross profit x 100
Profit x gross sales
If a business has total current assets amounting to €80,000 which includes inventory of €20,000 and has current liabilities amounting to €30,000, what is the acid test ratio?
1:1
2:1
4:1
3:1
Which of the following is NOT on the statement of financial position?
Current assets
Non current assets
Liabilities
Administration expenses
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