Test: Financial Accounting Quiz


Financial Accounting QuizVersión en línea Test your knowledge of financial accounting terms and ratios with this quiz! por Texia Vallejos 1 What is the formula for calculating gross profit? a Revenue - Cost of Goods Sold b Revenue x Cost of Goods Sold c Revenue / Cost of Goods Sold d Revenue + Cost of Goods Sold 2 Which ratio measures a company's ability to cover short-term liabilities with short-term assets? a Debt Ratio b Debt Equity Ratio c Current Ratio d Returns on Equity Ratio 3 What does a profit margin ratio of 20% indicate? a No profit or loss b Profit of 20 cents for every dollar of sales c Revenue of 20 cents for every dollar of sales d Loss of 20 cents for every dollar of sales 4 If expenses exceed revenue, the company's financial situation is likely to be: a Worse b Rapid Decrease c Slightly Increase d Slight Drop 5 What is the formula for calculating debt ratio? a Total Debt x Total Assets b Total Debt / Total Assets c Total Debt - Total Assets d Total Debt + Total Assets 6 Which term describes a sudden and significant increase in profits? a Plunged b Held Steady c Rapid Increase d Slow Drop 7 What is the main component of cost of goods sold? a Other Income b Personnel Expenses c Other Operational Expenses d Direct Costs of Production 8 Which ratio measures the proportion of equity and debt used to finance a company's assets? a Current Ratio b Returns on Equity Ratio c Debt Ratio d Debt Equity Ratio 9 If revenue remains constant while expenses increase, what is likely to happen to the profit margin? a Plunged b Worse c Slight Drop d Rapid Increase 10 What is the term for a gradual and continuous decrease in sales over time? a Rapid Decrease b Plunged c Slightly Increase d Slow Drop 11 It is a company’s total earning (or profit) a Revenue b Next income c Expenses d Cost of goods sold 12 They are the economic costs a business incurs through its operations to earn revenue a Next income b Personnel expenses c Expenses d Other income 13 It is a company’s total revenue minus the cost of goods sold a Expenses b Revenue c Net income d Gross profit 14 They are the direct costs attributable to the goods sold by a company a Cost of goods sold b Expenses c Gross profit d other operational expenses 15 It is used to represent income from activities other than normal business operations a Revenue b Expenses c Other income d Net income 16 It is a expense a business incurs through its normal business operations a Other operational expenses b Revenue c Expense d Other income 17 It is the amount of money that a company receives during a specific period a Expense b Next income c Income d Revenue 18 Value of expenditures related to personnel a Personnel expenses b Expenses c Other operational expenses d Expenditure

1

What is the formula for calculating gross profit?

a

Revenue - Cost of Goods Sold

b

Revenue x Cost of Goods Sold

c

Revenue / Cost of Goods Sold

d

Revenue + Cost of Goods Sold

2

Which ratio measures a company's ability to cover short-term liabilities with short-term assets?

a

Debt Ratio

b

Debt Equity Ratio

c

Current Ratio

d

Returns on Equity Ratio

3

What does a profit margin ratio of 20% indicate?

a

No profit or loss

b

Profit of 20 cents for every dollar of sales

c

Revenue of 20 cents for every dollar of sales

d

Loss of 20 cents for every dollar of sales

4

If expenses exceed revenue, the company's financial situation is likely to be:

a

Worse

b

Rapid Decrease

c

Slightly Increase

d

Slight Drop

5

What is the formula for calculating debt ratio?

a

Total Debt x Total Assets

b

Total Debt / Total Assets

c

Total Debt - Total Assets

d

Total Debt + Total Assets

6

Which term describes a sudden and significant increase in profits?

a

Plunged

b

Held Steady

c

Rapid Increase

d

Slow Drop

7

What is the main component of cost of goods sold?

a

Other Income

b

Personnel Expenses

c

Other Operational Expenses

d

Direct Costs of Production

8

Which ratio measures the proportion of equity and debt used to finance a company's assets?

a

Current Ratio

b

Returns on Equity Ratio

c

Debt Ratio

d

Debt Equity Ratio

9

If revenue remains constant while expenses increase, what is likely to happen to the profit margin?

a

Plunged

b

Worse

c

Slight Drop

d

Rapid Increase

10

What is the term for a gradual and continuous decrease in sales over time?

a

Rapid Decrease

b

Plunged

c

Slightly Increase

d

Slow Drop

11

It is a company’s total earning (or profit)

a

Revenue

b

Next income

c

Expenses

d

Cost of goods sold

12

They are the economic costs a business incurs through its operations to earn revenue

a

Next income

b

Personnel expenses

c

Expenses

d

Other income

13

It is a company’s total revenue minus the cost of goods sold

a

Expenses

b

Revenue

c

Net income

d

Gross profit

14

They are the direct costs attributable to the goods sold by a company

a

Cost of goods sold

b

Expenses

c

Gross profit

d

other operational expenses

15

It is used to represent income from activities other than normal business operations

a

Revenue

b

Expenses

c

Other income

d

Net income

16

It is a expense a business incurs through its normal business operations

a

Other operational expenses

b

Revenue

c

Expense

d

Other income

17

It is the amount of money that a company receives during a specific period

a

Expense

b

Next income

c

Income

d

Revenue

18

Value of expenditures related to personnel

a

Personnel expenses

b

Expenses

c

Other operational expenses

d

Expenditure

Financial Accounting Quiz

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Financial Accounting Quiz

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Financial Accounting QuizVersión en línea

por Texia Vallejos

What is the formula for calculating gross profit?

Which ratio measures a company's ability to cover short-term liabilities with short-term assets?

What does a profit margin ratio of 20% indicate?

If expenses exceed revenue, the company's financial situation is likely to be:

What is the formula for calculating debt ratio?

Which term describes a sudden and significant increase in profits?

What is the main component of cost of goods sold?

Which ratio measures the proportion of equity and debt used to finance a company's assets?

If revenue remains constant while expenses increase, what is likely to happen to the profit margin?

What is the term for a gradual and continuous decrease in sales over time?

It is a company’s total earning (or profit)

They are the economic costs a business incurs through its operations to earn revenue

It is a company’s total revenue minus the cost of goods sold

They are the direct costs attributable to the goods sold by a company

It is used to represent income from activities other than normal business operations

It is a expense a business incurs through its normal business operations

It is the amount of money that a company receives during a specific period

Value of expenditures related to personnel