Practice Quiz

CPA Accountant Review Questions - Question List

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46. Which of the following transactions have a negative impact on cash?
  1. A decrease in supplies on hand
  2. Proceeds from selling equipment used in the business
  3. A loss on selling equipment used in the business
  4. Dividends declared and paid
  5. An increase in income taxes payable
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47. If equipment is used by a corporation in its operations and is sold at a loss, under which section on the statement of cash flows is this reported?
  1. Operating
  2. Investing
  3. Financing
  4. Supplemental
  5. It is not reported on the statement of cash flows.
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48. The purchase of treasury stock would be shown under which section on the statement of cash flows?
  1. Operating
  2. Investing
  3. Financing
  4. Supplemental
  5. It is not reported on the statement of cash flows.
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49. What is the difference between a balance sheet and a trial balance?
  1. A trial balance does not show profit, a balance sheet does.
  2. A trial balance is used at month end and a balance sheet at year end.
  3. A trial balance is used to determine profit, a balance sheet to determine net assets.
  4. A trial balance is used to close accounts, a balance sheet to open accounts.
  5. A trial balance is an internal document, a balance sheet is an external document.
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50. Cartman’s Cats shows the following balances:

Cash: $20,000
Accounts Receivable: $60,000
Inventory: $80,000
Accounts Payable: $60,000
Wages Payable : $60,000

What is the quick ratio for the business?
  1. 0.2 : 1
  2. 0.4 : 1
  3. 0.7 : 1
  4. 0.8 : 1
  5. 0.6 : 1
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