Free Construction Industry Financial Professional Basic Questions and Answers

Question 1

What financial statement lists assets from current to long term?

Accepted Answer

Balance Sheet

Answer

Income Statement

Answer

Cash Flow Statement

Answer

Statement of Retained earnings

Question 2

What balance sheet formal is verticle?

Accepted Answer

Report

Answer

Standard

Answer

Account

Answer

Inverted

Question 3

Income statement format that separates the cost of goods sold into categories?

Accepted Answer

Multi-Step

Answer

Standard

Answer

Detailed

Answer

Expanded

Question 4

Which is not a cash activity listed on the cash flow statement?

Accepted Answer

Purchasing activities

Answer

Operating activities

Answer

Investing activities

Answer

Financing Activities

Question 5

Earning per share show investors the _________ earned per outstanding of stock.

Accepted Answer

Net Income

Answer

Operating Income

Answer

Income before taxes

Answer

Income before interest and taxes

Question 6

After a business transaction has occurred, journal entries are recorded in the:

Accepted Answer

General Journal

Answer

General Ledger

Answer

Expense Accounts

Answer

Balance Sheets

Question 7

Which trial balance lists all the business accounts before year-end adjusting journal entries are made?

Accepted Answer

Unadjusted Trial Balance

Answer

Adjusted Trial Balance

Answer

Post Closing Trial Balance

Answer

Pre Closing Trial Balance

Question 8

Entries that are made at the end of a period to correct accounts before financial statements are prepared.

Accepted Answer

Adjusting entries

Answer

Closing entries

Answer

Reversing entries

Answer

Journal entries

Question 9

The assumption that states that business can divide up their activities into artificial time periods.

Accepted Answer

Periodicity assumption

Answer

Business entity concept

Answer

Going concern concept

Answer

Monetary unit assumption

Question 10

Which of these is not included as a separate item in the basic accounting equation?

Accepted Answer

Revenue

Answer

Assets

Answer

Liabilities

Answer

Stockholder's equality