Practice Quiz

CFP Certified Financial Planner Test Prep - Question List

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31. Bart’s Brewskies is reconciling the company’s bank account. Assuming that all transactions flow through one account, which of the following transactions will Bart’s subtract from their bank statement’s ending balance to reconcile the accounts?
  1. Bounced checks from customers
  2. Checks that Bart wrote to purchase more hops that are not showing as cashed
  3. Deposits in transit to the bank.
  4. Cashed checks
  5. Missing deposits
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32. Jim’s Jeans makes stylish denim products for senior citizens. Jim’s Jeans begins the year with $20,000 in inventory. Jim purchases his inventory from a supplier in Europe and during the year he purchased $85,000 in goods. With the success of his Granny Glam line, Jim was quite happy with $150,000 in sales for the year, and he sees a 50% gross profit on the selling price. What was the balance of his inventory account at year end?
  1. $120,000
  2. $10,000
  3. $45,000
  4. $30,000
  5. $65,000
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33. A marketing expense and an overhead expense are both part of the:
  1. Direct expenses
  2. Operating expenses
  3. Indirect expenses
  4. Total expenses
  5. General expenses
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34. Which of the following is considered a contra account?
  1. Ken Tyler, Capital
  2. Cash
  3. Wages payable
  4. Wage expense
  5. Accumulated depreciation
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35. With all her recent acquisitions, Big Bertha needs to take a good look at her debt to equity ratio. If she owes $100,000 in long term debt, $50,000 in short term loans, and has $1,000,000 in shareholder equity, what is her debt to equity ratio?
  1. .15
  2. .10
  3. .05
  4. .50
  5. .20
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