Robert Half Assessment Test Accounting 5

Question 1

A company borrows $10,000 from a bank on a 6-month, 8% note payable. How much interest will accrue over the 6-month term?

Accepted Answer

$400

Answer

$800

Answer

$480

Answer

$600

Question 2

Which of the following is classified as an operating activity on the statement of cash flows?

Accepted Answer

Collection of accounts receivable

Answer

Purchase of equipment

Answer

Payment of dividends

Answer

Issuance of long-term bonds

Question 3

What does the term 'net realizable value' refer to in the context of inventory?

Accepted Answer

The estimated selling price minus costs to complete and sell

Answer

The original cost of inventory

Answer

The replacement cost of inventory

Answer

The book value after depreciation

Question 4

Which ratio measures a company's ability to pay interest on its outstanding debt?

Accepted Answer

Times interest earned ratio

Answer

Debt-to-equity ratio

Answer

Current ratio

Answer

Return on assets

Question 5

Deferred revenue on the balance sheet represents:

Accepted Answer

Cash received for services not yet performed

Answer

Revenue earned but not yet collected

Answer

An expense paid in advance

Answer

Revenue recognized in a prior period

Question 6

Under the perpetual inventory system, Cost of Goods Sold is recorded:

Accepted Answer

Each time a sale is made

Answer

Only at the end of the accounting period

Answer

When physical inventory is counted

Answer

When cash is collected from the customer

Question 7

Which of the following transactions would increase total stockholders' equity?

Accepted Answer

Net income for the period

Answer

Declaration of a cash dividend

Answer

Purchase of treasury stock

Answer

Net loss for the period