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Sample Test for Financial Accounting

Sample Test for Financial Accounting Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. In the annual report, where would a Financial statement reader find out if the company s Financial statements give a fair depiction of its Financial position and operating results? a. Notes to the Financial statements b. Management discussion and analysis section c. Balance sheet d. Auditor s report e. None of the options listed ____ 2. Which Accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments? a. Monetary unit assumption b.

Johnny’s Car Repair Shop started the year with total assets of $60,000 and total liabilities of $40,000. During the year the business recorded $100,000 in car repair revenues, $55,000 in expenses, and dividends of $10,000. ____ 3. The net income reported by Johnny’s Car Repair Shop for the year was a. $35,000. b. $45,000. c. $20,000. d ...

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