TEMA 7

In the Profit and Loss Statement, financial expenses and income are calculated: A. Before operating expenses and income. B. After extraordinary expenses and income. C. Before extraordinary expenses and income. D. They are not calculated in this statement.

An entry in the Journal: A. May contain only one posting. B. A later‑dated entry may have a lower number than another with an earlier date. C. If it is a credit entry, it must have a positive amount in the credit column. D. A later‑dated entry must have a higher number than another with an earlier date.

Treasury shares, those that are owned by the company itself: A. Are part of fixed assets. B. Are part of liabilities. C. Are part of cash and cash equivalents. D. None of the above is correct.

Which component is not part of current assets?. A. Inventories. B. Receivables. C. Fixed assets. D. Cash and cash equivalents.

A company’s patents are part of: A. Tangible fixed assets. B. Intangible fixed assets. C. Inventories. D. Cash and cash equivalents.

Fixed assets belong to: A. Current assets. B. Non‑current liabilities. C. Current liabilities. D. Non‑current assets.

Cash on hand is part of: A. Receivables. B. Cash and cash equivalents. C. Fixed assets (non-current assets). D. Non‑current liabilities.

To calculate operating profit, the following statement is used: A. Trial Balance. B. Balance Sheet. C. Profit and Loss Statement. D. Verification Balance.

A company’s patents are part of: A. Tangible fixed assets. B. Intangible fixed assets. C. Inventories. D. Cash and cash equivalents.

To determine the company’s financial position, the following statement is used: A. Trial Balance. B. Balance Sheet. C. Profit and Loss Statement. D. Verification Balance.

In the Profit and Loss Statement, extraordinary expenses and income are calculated: A. After operating expenses and income. B. After financial expenses and income. C. Before financial expenses and income. D. They are not calculated in this statement.

Asset accounts: A. Increase by posting to the debit side and decrease by posting to the credit side. B. Increase by posting to the credit side and decrease by posting to the debit side. C. Increase by posting to the credit side and decrease by reducing the debit side. D. Increase by reducing the credit side and decrease by posting to the debit side.

Cash discounts on purchases for early payment: A. Are income. B. Are expenses. C. Are inventories. D. Are receivables.

To prepare the Balance Sheet, it is necessary to have calculated: A. Only the Trial Balance. B. The Profit and Loss Statement. C. The Journal. D. None of the above.

A decrease in inventories will result in: A. A decrease in liabilities and losses for the company. B. A decrease in assets, an increase in turnover, and an increase in economic profitability. C. A decrease in assets, a decrease in turnover, and a decrease in economic profitability. D. A decrease in liabilities and gains for the company.

Leverage is: A. Sales / Assets. B. Assets / Equity. C. Equity / Liabilities. D. Margin / Assets.

Financial audits: A. Are carried out by the staff who perform the accounting. B. Are part of the company’s financial statements. C. Are carried out by personnel different from those who perform the accounting. D. Cannot be internal.

If a company’s fixed assets amount to €300,000 and its non‑current liabilities amount to €400,000, the Working Capital will be: A. –100,000 €. B. 700,000 €. C. –700,000 €. D. 100,000 €.

If a company’s working capital is –40,000 €, its financial position is: A. Total stability. B. Payment suspension. C. Patrimonial stability. D. Stable treasury.

If WC is Working Capital, and CA and CL are Current Assets and Current Liabilities, which equation is correct?. A. CA = CL + WC. B. WC = CA + CL. C. CL = CA + WC. D. None of the above is correct.

Turnover (rotation) is: A. Sales / Time. B. Assets / Sales. C. Sales / Assets. D. Profit / Sales.

In an audit, which action is not performed?. A. The accounting entries of the company are reviewed. B. Incorrect accounting entries are corrected. C. The documentation supporting those entries is checked. D. The correct functioning of the accounting process is verified.

A decrease in inventories will result in: A. A decrease in liabilities and losses for the company. B. A decrease in assets, an increase in turnover, and an increase in economic profitability. C. A decrease in assets, a decrease in turnover, and a decrease in economic profitability. D. A decrease in liabilities and gains for the company.

Financial audits: A. Are carried out by the staff who perform the accounting. B. Are part of the company’s financial statements. C. Are carried out by personnel different from those who perform the accounting. D. Cannot be internal.

To determine the company’s financial position, the following statement is used: A. Trial Balance. B. Profit and Loss Statement. C. Balance Sheet. D. Verification Balance.

Financial cash flow is calculated as: A. Income – expenses. B. Profit – taxes. C. Collections – payments. D. None of the above.

How is the ability to pay short‑term debts using the cash available in hand and bank accounts measured?. A. Autonomy Ratio. B. Guarantee Ratio. C. Debt Quality Ratio. D. Availability Ratio.

Financial profitability (ROE) is: A. Net Profit / Equity. B. Net Profit / Sales. C. Sales / Equity. D. None of the above.

The ratio that measures the same concept as working capital is: A. Solvency. B. Guarantee. C. Liquidity. D. Treasury.