Quiz: Financial Accounting Quiz


Financial Accounting QuizOnline version Test your knowledge of financial accounting terms and ratios with this quiz! by 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

Use these credentials to integrate the game into an LMS compatible with LTI 1.1 such as Canvas, Moodle, or Blackboard. This way, the scores will be automatically saved into the platform’s gradebook.

Financial Accounting Quiz

Quiz

Download the paper version to play

Created by

Top 10 results

Top Games

Quiz

Photosynthesis vs Cellular Respiration - Practice Quiz

Quiz

UPS 5 Seeing Habits Quiz

Quiz

Tissues - Practice Quiz

Quiz

Spanish Alphabet Listening

Quiz

Practice Quiz - Punnett Square, Variation, and Mutations

Financial Accounting QuizOnline version

by 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