Activity Multiple Choice
Uploaded by
Crislyn EngayasActivity Multiple Choice
Uploaded by
Crislyn EngayasActivity: Multiple choice 1 to10
1. Accurately capturing all financial transactions to maintain a complete financial history.
A. Classifying Data B. Summarizing Information C. Recording Transactions D. Compliance
2. Providing concise financial statements that reflect the organization's financial position and
performance.
A.Summarizing Information B. Training Resource C. Compliance D. Standardization
3. It acts as a training tool for new employees, helping them understand the accounting processes and
systems in place.
A. Compliance B. Standardization C. Summarizing Information D. Training Resource
4. It ensures adherence to legal and regulatory requirements, reducing the risk of errors and potential
penalties.
A. Categorization B. Compliance C. Automation D. Standardization
5. Organizing financial data into categories for easier analysis and reporting.
A. Automation B. Training Resource C. Balance Sheet D. Classifying Data
6. It involves expressing each line item in a financial statement as a percentage of a base figure, such as total
sales or total assets.
A. Vertical analysis. B. Horizontal analysis. C. Ratio analysis. D. Financial analysis
7. Uses various ratios like liquidity ratios (current ratio), profitability ratios (net profit margin), and solvency
ratios (debt-to-equity ratio) to assess different aspects of financial health.
A. Vertical analysis. B. Horizontal analysis. C. Ratio analysis. D. Financial analysis
8. It is a financial statement that accounts for a business's assets, liabilities, and shareholders' equity at a
specific time.
A. Balance sheet. B. Income statement. C. Statement of cash flows. D. Statement of shareholders equity
9. It is a financial statement that shows how changes in balance sheet accounts and income affect cash and
cash equivalents, and breaks the analysis down to operating, investing and financing activities.
A. Balance sheet. B. Income statement. C. Statement of cash flows. D. Statement of shareholders equity
10. It is a financial statement that lays out a company's revenue, expenses, gains, and losses during a set
accounting period.
A. Balance sheet. B. Income statement. C. Statement of cash flows. D. Statement of shareholders equity