Financial Accounting QuizVersion en ligne Test your knowledge of financial accounting terms and ratios with this quiz! par 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
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