MSCSIII Accounting Test

1.

1 point

Income is money coming into the business. Which of the following is NOT a type of income:

Rental Income

Interest Income

Advertising

Sales

2.

1 point

Expenses are money that is paid our of the business. Which of the following is NOT an expense:

Advertising

Rental income

Water/sewage

Rent

3.

1 point

Something that a company OWNS:

owner's equity

liability

income

asset

4.

1 point

When a business has more expenses than income, this is called a:

net loss

gross profit

gross loss

net profit

5.

1 point

On an Income Statement, which of the following is TRUE:

Income = Expense - Net Loss

Income = Expense - Net Income

Income - Expense = Net Income/Loss

Assets = Liabilities + Owner's Equity

6.

1 point

The financial statement that has Assets, Liabilities, and Owner's Equity:

Balance sheet

Statement of Retained Earnings

Asset Statement

Income Statement

7.

1 point

Company XYZ has sales income of $3100. It also has expenses as follows: Rent: $500; Utilities: $100; Salaries: $750; Advertising: $50. What was Company XYZ's profit/loss for the month?

Net Loss = $1600

Net Loss = $1400

Net Profit - $1600

Net Profit = $1400

8.

1 point

Money coming into a business:

asset

owner's equity

liability

income

9.

1 point

The financial statement that has income and expenses:

statement of retained earnings

balance sheet

income statement

asset statement

10.

1 point

Money being paid out of a business:

assets

expense

income

liability

11.

1 point

When a business has more income than expenses, this is called a:

net loss

net income

gross loss

gross income

12.

1 point

The initial investment that a person makes into a company:

asset

income

liability

owner's equity

13.

1 point

Something that a company OWES:

income

asset

liability

owner's equity

14.

1 point

Liabilities are things OWED by a company. Which of the following is NOT a liability:

Furniture and Fixtures

Lines of Credit

Mortgage payable

Accounts payable

15.

1 point

In the heading of a Balance Sheet, which of the following is correct for the date information?

For the month Ending June 30, 2014

December 31, 2015

For the Period Ending December 31, 2015

For the Quarter Ending September 30, 2015

16.

1 point

The basic accounting equation is:

Assets - liabilities = Owner's Equity

Assets + liabilities = Owner's Equity

Assets = Liabilities - owner's equity

Assets = Liabilities + Owner's Equity

17.

1 point

On a Balance Sheet, which of the following is a TRUE statement:

Assets + Liabilities = Owner's Equity

Assets - Liabilities = Owner's Equity

Assets = Liabilities + Owner's Equity

Assets = Liabilities = Owner's Equity

18.

1 point

Business ABC has Sales Income = $3500 and Total Expenses = $5000. Which of the following is TRUE?

Business ABC had $5000 in sales

Business ABC had a net profit of $1500

Business ABC had a net loss of $1500

Business ABC broke even for the moth

19.

1 point

In the heading of an Income Statement, which of the following is NOT true for the time period:

For the month ending June 30, 2015

For the year ended December 31, 2015

December 31, 2015

For the quarter ending September 30, 2015

20.

1 point

Assets are things OWNED by a company. Which of the following is NOT an asset:

Accounts Receivable

Cash

Interest Income

Inventory