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1.
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Financial statements do NOT include:
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  Balance sheet
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A budget
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Income statement
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Cash flow statement
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2.
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The expression double-entry system is
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Used to indicate that for each transaction, a record has been made in at least two places.
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A duplication of debit and credits.
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A dual pricing system
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Used to indicate that for each transaction, assets =liabilities
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3.
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Current assets do NOT include:
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Prepaid expenses
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Investments
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Merchandise inventory
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Accounts receivable
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4.
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Revenue listed on the income statement does NOT include:
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Income tax refund
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Gain or loss on equipment
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Earnings
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Interest income
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5.
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The net worth figure is useful when:
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Changing ownership
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Comparing one accounting period to another
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Paying dividends
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Determining book value of shares
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6.
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When making comparisons, it is customary to convert income statement data to:
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Ratios
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Fractions
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Multipliers
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Digits
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7.
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A balance sheet must show figures:
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By month
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By year
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At a single point in time
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By week
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8.
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The processes and procedures used to record measures of dollars and cents, according to categories, are called:
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Accounting
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Accounting cycle
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Bookkeeping
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Financial accounting
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9.
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Another name for the income statement is the:
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Statement of cash flows
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Statement of earnings
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Profit or loss statement
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Retained earnings statement
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10.
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Most businesses recognize revenues and expenses, using the ________________ method of accounting
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Cash
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Accrual
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Modified accrual
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Fund
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11.
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Which of the following is NOT on an individual’s income statement?
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Income tax refund
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State income tax withheld
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Cash value of life insurance
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Interest income
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12.
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The basic financial statements include a
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Balance sheet, income statement, statement of retained earnings, and statement of changes in retained earnings
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Balance sheet, income statement, and cash flow statement
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Statement of financial position, income statement, statement of retained earnings, and statement of changes in retained earnings
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Balance sheet, statement of financial position, income statement, and statement of changes in retained earnings
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13.
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For most businesses, the current ratio should be ______________.
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Not less than 2:1
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Equal to 2:1
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Equal to 1:1
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Greater than 1
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14.
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The values shown for assets such as real estate and equipment will be recorded at.
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Cost
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Liquidation value
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Market value
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Depreciated value
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15.
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Four sales representatives employed by Blue Carpet Realty earned $2120; $1865; $2863; and $2175 during the past month. What was the average of their monthly earnings?
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$2,055.25
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$1,825.50
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$2,480.25
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$2,255.75
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16.
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The Lawson’s wanted to insure their house for $275,000. The insurance company charges an annual premium rate of 33 1/3 cents per $100 insurance for this type policy. How much is their annual premium?
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$1,015.50
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$915.75
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$1,275.25
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$1,575.75
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17.
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Last year a family paid $26,500 for house payments. If this is 30% of the family's annual income, how much was the annual income?
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$79,500
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$88,333
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$97,333
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$86,666
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18.
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A farm sold 64 acres of a 480-acre farm. Express as a fraction what part of the farm sold.
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6-Jan
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8-Jan
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10-Mar
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15-Feb
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19.
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John bought three tracts of land: 3/4 acre, 7/15 acre, and acre. How many acres did he purchase?
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3 1/5
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1 8/15
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2 13/60
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Sep-40
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20.
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A property grosses $42,000 per month with a yearly expense of 36% of the gross income. If it was capitalized at 16%, what would be its value? (nearest thousand)
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3,451,000
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3,541,000
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2,016,000
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2,618,000
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21.
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A property listed for $90,000 was insured at a rate of $3.00 per $1,000 per year. What is the yearly insurance premium?
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22.
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The area of a square plot of property is 3,600 square yards. How long is the side of the square plot?
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36 yds
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30 yds
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60 yds
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75 yds
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23.
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At a cost of $3 a square foot how much money is paid for carpeting a square with a side of 15 feet?
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24.
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The width of a swimming pool is 25.5 feet wide, and the length is twice as much. What is the area of this swimming pool?
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1,100.7 sq ft
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1,300.5 ft sq
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900 sq ft
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1,206 sq ft
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25.
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Compute the exact interest due on a loan of $80,000 at 10.5% for 120 days.
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$7,261
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$2,761
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$1,761
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$6,176
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26.
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Compute the exact interest due on a loan of $2,100 at 8.25% from June 18 to September 1
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$37.60
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$36.07
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$63.07
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$76.03
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27.
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Assume that it would cost $330 in interest to use a sum of money for 18 months. If the interest rate was 11 percent, how much is the loan?
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$2,000
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$1,800
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$7,400
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$4,000
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28.
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Find the area of a square lot that has a side of 60.1 yards.
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6,321.1 sq yd
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3,612.01 sq yd
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1,362.05 sq yd
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7,300.31 sq yd
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29.
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A circular shaped lot has a radius of 100 ft. What is the area of this property? (use pi = 3.14)
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31,400 sq ft
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43,400 sq ft
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3,400 sq ft
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10,000 sq ft
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30.
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An office building is valued at $800,000 when net operating income is capitalized at a rate of 20%. If operating expenses are 40% of gross income, what is gross income?
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$266,667
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$312,412
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$400,000
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$507,312
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