Accounting practice test for employment

Accounting Test Assess Your Knowledge On Accounting

37 25 21Following What are specialized skills in accounting?

1. The Statement of Profit and Loss is also called the* Balance Sheet. Income Statement. Statement of Cash Flows. Statement of Financial Position.
2. Which of the following is not a type of cash flows shown in the Cash Flow Statement?* Operating cash flow. Investing cash flow. Accounting cash flow. Financing cash flow.
3. Which of the following is not a current asset?* Cash. Accounts receivable. Inventory. Property, plant, and equipment.
4. What are the effects on the balance sheet when a company borrows a two-year bank loan of $1,000?* $1,000 credit in current liabilities; $1,000 debit in current assets.
5. What happens to the balance sheet when a company makes sales of $500, of which $300 is paid in cash and $200 is sold on credit?* $300 debit in cash; $200 debit in accounts receivable; $500 credit in retained earnings.
6. What happens to the balance sheet when a company pays salaries of $5,000?* $5,000 credit in cash; $5,000 debit in accounts payable. $5,000 credit in cash; $5,000 debit in retained earnings.
7. Which of the following is the correct formula to calculate operating income?* Operating income = Revenue - Direct operating cost. Operating income = Revenue - Indirect operating cost.
8. Given the following Balance Sheet extract, calculate the net profit on the Income Statement. (Assuming tax rate = 10% of operating profit)* 37 25 21 33.
9. Company A used $3,000 worth of office supplies this year but the costs were not paid for until next year. Which of the following is not a result of this transaction?*
10. Company B purchased an equipment for $600. The equipment has a useful life of 4 years and a scrap value of $50 at the end of year 4. What is the depreciation expense for year 1 (using straight line method)?*
11. Financial analysis software: Organizations often use this type of software to help automate the accounting process.
12. Tax prep software: For both individuals and businesses, tax season can be quite a challenge.
13. Compliance software: Every industry has its risks.
14. Review notes after each class to be sure you don’t have any questions about the lesson.
15. Look back at any practice problems in the book.
16. Don’t hesitate to ask for clarification. For example, if you are having trouble with debt-to-equity ratio, ask your professor for help.
17. Have all your class notes with you and organized by topic or chapter.
18. Mark the relevant chapters in your textbook with Post-it notes so you can easily flip to the information you need when you need it.
19. Have some extra pens and pencils handy.
20. Have any old homework assignments or exams with you.
21. Gather any practice tests you might want to use.
22. Understand the different activities a scalable business needs to accomplish.
23. Ensure there’s a proven process-driven system in place to deliver these activities.
24. Know the type of person best suited for each role.
25. Select the person with the necessary skills that you trust enough to follow the processes, and delegate the responsibilities for those tasks.

Category: Accounting skills test free Preview / Show details