Robert Half Assessment Test Accounting 4

Question 1

Which inventory costing method is NOT permitted under IFRS?

Accepted Answer

LIFO

Answer

FIFO

Answer

Weighted Average

Answer

Specific Identification

Question 2

A company has net credit sales of $500,000 and average accounts receivable of $62,500. What is the accounts receivable turnover ratio?

Accepted Answer

8 times

Answer

4 times

Answer

6 times

Answer

10 times

Question 3

What is the effect on the accounting equation when a company pays a previously recorded account payable?

Accepted Answer

Assets decrease; liabilities decrease

Answer

Assets increase; liabilities increase

Answer

Assets decrease; equity decreases

Answer

No effect on the accounting equation

Question 4

Which of the following would appear on a post-closing trial balance?

Accepted Answer

Retained Earnings

Answer

Service Revenue

Answer

Salaries Expense

Answer

Dividends

Question 5

Gross profit is calculated as:

Accepted Answer

Net Sales minus Cost of Goods Sold

Answer

Net Sales minus Operating Expenses

Answer

Revenue minus All Expenses

Answer

Operating Income minus Interest Expense

Question 6

When a company issues common stock for cash, the journal entry includes:

Accepted Answer

Debit Cash; Credit Common Stock

Answer

Debit Cash; Credit Accounts Payable

Answer

Debit Common Stock; Credit Cash

Answer

Debit Retained Earnings; Credit Common Stock

Question 7

The matching principle in accounting states that:

Accepted Answer

Expenses should be recognized in the same period as the revenue they help generate

Answer

Assets must equal liabilities plus equity

Answer

Revenue must equal expenses in every period

Answer

Financial statements must use the same format each period