Accounting and Finance

I wanna be a billionaire

100

The ________ for a given point in time can be calculated using the balance sheet.

• owner’s liability.
• income statement.
• accounting equation.
• financial statements.

What is accounting equation?

200

Businesses use accounting as a language to communicate financial information to three groups of people. Who are these three groups?

• internal users, external users, and suppliers.
• external users, suppliers, and consumers.
• internal users, external users, and the government.
• consumers, suppliers, and the government.

What is internal users, external users, and the government.

300

Information needed by external entities in order to evaluate business performance is provided by:

• Attorneys.
• Managerial Accountants.
• Financial Accountants.
• Forensic Accountants.

What is financial accountants?

400

The heart of all financial accounting is the accounting equation, which is represented as:

• assets = liabilities − owner’s equity
• assets = liabilities + owner’s equity
• owner’s equity = assets + liabilities
• liabilities = assets + owner’s equity

What is assets = liabilities + owner’s equity?

500

Why are accounting statements prepared in a prescribed order?

• Because of the accounting equation: assets equal liabilities plus owner’s equity.
• Because the statements are submitted to the government at different times of the year.
• Because the figures calculated on prior statements are inputs to subsequent statements.
• Because of the accounting equation: net profit equals income minus expenses.

What is because the figures calculated on prior statements are inputs to subsequent statements?

Call me Rich Uncle Pennybags

100

The formal definition of accounting is: “The process of identifying, measuring, and communicating economic information.” Informally, accounting is often referred to as:

• The Language of the IRS.
• The Language of Business.
• A Business Plan.
• Financial Statements.

What is the Language of Business?

200

Which financial statement is the first one prepared by a company, in order to complete all other remaining statements:

• Statement of Owner’s Equity.
• Statement of retained earnings.
• Income Statement.
• Balance Sheet.

What is income statement?

300

When a company makes a decision to purchase a component part instead of manufacturing it in house, that decision is based primarily on ________ ________ information.

• forensic accounting.
• tax accounting.
• managerial accounting.
• financial accounting.

What is managerial accounting? 

400

The Generally Accepted Accounting Principles, or GAAP, require companies to prepare the following four financial statements:

• income statement, corporate tax return, balance sheet, and statement of cash flows.
• income statement, balance sheet, statement of cash flows, and statement of owner’s equity.
• income statement, statement of cash flows, corporate tax return, and statement of financial position.
• income statement, statement of financial position, balance sheet, and statement of cash flows.

What is income statement, balance sheet, statement of cash flows, and statement of owner’s equity?

500

When break-even units are 5000, and fixed costs are $100,000, what is the per unit contribution margin?

• $20
• $200
• $100
• $50

What is $20?

Rich as Daddy Warbucks

100

________ perform managerial accounting functions.

• Cost Accountants.
• Tax Accountants.
• Financial Accountants.
• Budget Specialists.

What is cost accountants?

200

Which of the following will allow a business owner to understand how much money she has put into the business so far?

• the balance sheet.
• the statement of owner’s equity.
• the statement of cash flows.
• the income statement.

What is the stateent of owner's equity?

300

The accounting equation represents the relationship between owner’s equity, liabilities, and:

• the assets of a business.
• the business’s profits.
• the current market value of a business.
• the amount for which the business was purchased.

What is the assets of a business?

400

Contribution Margin covers fixed expenses at:

• Break-even.
• Profitability.
• Equilibrium.
• Year end.

What is break-even?

500

The Sabian company manufactures drums and sells them to colleges for marching bands. This last quarter, Sabian sold $500,000 with fixed costs of $150,000 and a contribution margin of $150,000. What were Sabian’s variable costs for the quarter?

• $350,000
• $200,000
• $150,000
• $300,000

What is $350,000?

Money moocher

100

You can determine the financial position of a company from:

• the balance sheet.
• the income statement.
• profit and loss statement.
• the statement of cash flows.

What is the balance sheet?

200

In a manufacturing operation parts used to produce the finished product are considered:

• an appreciation expense.
• depreciation expense.
• a fixed cost.
• a variable cost.

What is a variable cost?

300

Which of the following allows a manager to understand why the business has had record sales, yet is having a hard time paying the bills each month:

• the income statement.
• the operating statement.
• the statement of cash flows.
• the statement of owner’s equity.

What is the statement of cash flows?

400

Contribution margin per unit divided by sales price per unit is:

• Profit
• Profit Margin Ratio
• Breakeven
• Contribution Margin Ratio

What is contribution margin ratio?

500

Given a contribution margin of $20, if 10,000 units are produced at a cost of $400,000 what is the sales revenue in USD?

• $300,000
• $600,000
• $60
• $200,000

What is $600,000?

Moo la-la-la

100

What term describes a business when revenue earned and costs incurred, in a given period are equal?

• Equilibrium.
• Break-even.
• Balancing point.
• Profit.

What is break-even?

200

Fixed costs divided by contribution margin per unit is:

• cost of goods sold.
• the formula for profit per unit.
• the break-even point.
• production cost.

What is the break-even point?

300

Details for account balances found on one of the four accounting statements may be found on another of the four statements. This is known as:

• Owner’s Equity.
• Inter-Connectivity.
• the Accounting Connection.
• the Accounting Equation.

What is inter-connectivity? 

400

Which ratio emphasizes assets that can be quickly and reliably turned into cash?

• Inventory turn
• Debt-to-Equity Ratio
• Current ratio
• Acid-test (Quick) ratio

What is acid-test (Quick) ratio?

500

The Sarbanes-Oxley Act (SOX) was instituted to:

• force small businesses to adopt strict accounting practices.
• define rules of accounting.
• protect investors from the possibility of fraudulent accounting activities by corporations.
• govern the exchange of funds on the open stock market.

What is protect investors from the possibility of fraudulent accounting activities by corporations?