6.

Capital accounts represent the own er's worth in the

business.
a) equity
b) value
c) hammock
d) net

7. accounts are accounts for your sources of business-

generated income.
a) Liability
b) Revenue
c) Balance
d) Drawing

8. The is the difference between what a business pays for an

item wholesale and what the business sells it for retail.
a) markup
b) makeup
c) makeshift
d) moreover

9. An accounts payable shows how much you owe each of

your vendors.
a) lecture
b) leeway
c) ledger
d) manual

8
10. Accounts shows how much money your customers owe you.
a) incoming
b) receivable
c) obtainable
d) collectable

Test №31 The balance sheet

1. A balance sheet shows the financial resources that a company has at a

point in time and where they came from.
a) records
b) resources
c) returns
d) revenues

2. It is an instant photograph that displays the company's financial

Position at the end of a business month, quarter or year.
a) explanation
b) position
c) publication
d) station

3. The organization of a balance sheet reflects this basic Equation :

assets equal debts plus equity.
a) arrangement
b) assessment
c) equation
d) question

9
4. The Table of accounts is a listing of the acco unts that are reflected

in the financial statements.

a) book
b) chart
c) table
d) outline
5. Assets are often listed in the order of their Liquidity — which means
how easy it would be to convert each asset into cash.
a) complexity
b) liquidity
c) security
d) simplicity

6. Assets are divided into three categories: Current Assets, Fixed Assets,
and Current fixedAssets.
a) Current fixed
b) Different
c) Fixed current
d) Other

7. Current assets will likely be turned into cash or converted into a(n)
Stock within a year.
a) bonus
b) expense
c) option
d) stock

10
8. Fixed assets are saleable, but are not expected to be converted to cash
in the Final course of business.
a) average
b) equal
c) final
d) normal

Owed
9. Liabilities are debts or stemming from goods or services
received by the company.
a) obligations
b) others
c) outstandings
d) owed

10. If the as sets of a company are greater than its liabilities, then the
equity of the business is the positive Sum between the two
numbers.
a) calculation
b) difference
c) dividend
d) sum

Test №42 Inco me statements

1. The statement of income and expenses reports the company's income
and expenses for the time peri od: it is also called a Gain -and-loss
statement.
a) earnings
b) gain
11
 c) profit
d) win

2. The first item on the statement is the total amount of sales of products
or services; this is often referred to as Whole sales.
a) gross
b) mass
c) overall
d) whole

Cost
3. The main deduction from this revenue is called of sales, the
amount of money the company spent to produce the same goods or
services.
a) cost
b) discount
c) expense
d) reduction

4. The next deduction is Fixed expenses — for example,

administrative salaries and research costs, which do not vary directly
with production.
a) fixed
b) operating
c) standard
d) unproductive

Change
5. Depreciation expenses the wear and on assets like
machinery, equipment and furnishings.

12
 a) age
b) change
c) repair
d) tear

6. The depreciation charge for using these assets during the accounting
period is a Fragment of their original cost.
a) foundation
b) fractile
c) fragment
d) function

7. Interest income is the money that the company earns by keeping its
cash in savi ngs accounts, term deposits, etc.
a) Illicit
b) Inactive
c) Interest
d) Internal

8. Finally, Income tax is deducted.

a) business
b) commercial
c) income
d) value-added

9. The final entry is the Bottom line, which represents net earnings of
the company during the accountingBperiod.
a) balance
b) base

13
 c) black
d) bottom

10. Additionally, EPS indicates how much shareholders would

receive if the company distributed all of its net earnings as dividends.
a) EPS
b) GDP
c) GNP
d) VAT

Tes t №53 Cost accounting

1. Monitoring or cost accounting systems are part of a company's

information system and are used for tracking costs and allocations to
judge operational efficiency.
a) Corporate
b) Domestic
c) Management
d) Monitoring

2. This is an Internal accounting system, rather than one for outside

reporting.

a) inner
b) inside
c) interior
d) internal

14
3. There are no Restricted rules governing how a company should keep
track of cash flows for cost accounting purposes.
a) amended
b) fixed
c) required
d) restricted

4. Capital budgeting is a form of forecasted cost accounting for long-

term projects or expenditures.
a) Capital
b) Major
c) Overhead
d) Terminal

5. Cost accounting applications are major financial Operators in

everyday corporate decision-making.
a) distractors
b) drivers
c) fetters
d) operators

6. Cost accounting is important for estimating the Profitability of current

and future activities.
a) foreseeability
b) profitability
c) sensibility
d) variability

15
7. When good cost accounting procedures are Implemented, the company
may find out that they have been producing a non-profitable product
or service.
a) contracted
b) discarded
c) implemented
d) suggested

Motivates
8. Cost accounting managers toward company goals.
a) aggravates
b) gravitates
c) insulates
d) motivates

Performance
9. It also measures the of managers and departments in the
company .
a) acceleration
b) doings
c) performance
d) seniority

10. Variable costs change in proportion to the level of production

activity, while fixed costs remain unchanged.
a) varicose
b) various
c) variable
d) versatile

16
 Test №64 International Accounting standards

1. With the activities and interests of investors, lenders a nd companies

becoming increasingly global, the Securities and Exchange
Commission is increasing its involvement in a number of forums to
develop a globally accepted, high quality financial reporting
Framework .

a) bulwark
b) framework
c) outline
d) scaffold

2. Our efforts, at both a domestic and international level, consistently

have been based on the view that the only way to achieve fair, liquid
and efficient capital markets worldwide is by providing investors with
information that is Compatible, transparent and reliable.
a) commensurate
b) commercial
c) comparable
d) compatible

3. That is why we have pursued a dual objective of upholding the quality

of financial reporting domestically, while encouraging Conversion
towards a high quality global financial reporting structure
internationally.
a) convention
b) converg ence
c) conversion
d) conveyance

17
4. Over the last two decades, the global financial Landscape has
undergone a significant transformation.
a) landscape
b) panorama
c) prospect
d) scenery

5. These developments have been , in part, to dramatic

changes in the business and political climates, increasing global
competition, the development of more market-based economies, and
rapid technological improvements.
a) accountable
b) amenabl e
c) answerable
d) attributable

6. Our efforts to develop a global financial reporting structure have been

guided by the principle underlying our system of regulation
— pursuing our mandate of investor protection by promoti ng
informed investment decisions through full and fair disclosure.
a) bedrock
b) cornerstone
c) keynote
d) landmark

7. In 1988, we issued a policy statement that noted that all securities

regulators should work together Definitivelly , to create sound
international regulatory systems that will enhance the vitality of
capital markets.

18
 a) definitively
b) desultorily
c) diligently
d) distinctly

8. Currentl y, issuers wishing to access capital markets in different

juris dictions must comply with the requirements of each jurisdiction,
Angles
which differ in many .
a) angles
b) respects
c) senses
d) views

9. Throughout this effort, we have been Headstrongin advocating that

capital markets operate most efficiently when investors have access to
high quality financial information.
a) headstrong
b) heavyhanded
c) singleminded
d) steadfast

10. While the accounting standards used must be high quality, they also
must be supported by an infrastructure that ensures that the
standards are Rightfully interpreted and applied, and th at issues and
problematic practices are identified and resolved in a timely fashion.
a) righteously
b) rightfully
c) rigidly
d) rigorously

19
 Test №75 International Accounting standards (2)
1. High quality acco unting standards are critical To the
development of a high qual ity global financial reporting structure.
a) of
b) over
c) to
d) under

2. Different accounting traditions have developed around the world in

response to varying needs of users for whom the financial information
is prepared; in some countries, accounting stan dards have been
Shaped primarily by the needs of private creditors, while in other

countries the needs of tax authori ties or central planners have been the
predominant influence.
a) drawn
b) shaped
c) sketched
d) written

3. Establishing and maintaining high quality accounting standards are

critical to the US approach to regulation of capital markets, which
depends on providing high quality information to facilitate Advised
investment decisions.
a) advised
b) advisory
c) informational
d) informed

20
4. High quality accounting standards are essential to the efficient
functioning of a market economy because decisions about the
Credible
allocation of capital rely heavily on and understandable
financial information.
a) accredited
b) credence
c) credible
d) creditable

5. When issuers prepare financial statements using more than one set of
accounting standards, they may find it difficult to explain to investors
the accuracy of both sets of financial stateme nts if significantly
different operating results, financial Transactions or cash flow
class ifications are reported under different standards for the same
period.
a) decisions
b) operations
c) positions
d) transactions

6. Questions about the believability of an entity's financial reporting are

likely where the differences highlight how one approach Underscores
poor financial performance, lack of profitability, or deteriorating asset
quality.
a) dwells on
b) masks
c) skims over
d) underscores

21
7. Also, the audit is an important element of the financial reporting
structure because it subjects information in the financial statements to
independent and objective , increasing the reliability of
those financial statements.
a) autonomy
b) calumny
c) legality
d) scrutiny

8. Recent events in the United States have highlighted the importance of

high quality auditing standards and, at the same time, have Asked

questions about the effectiveness of today's audits and the audit

process.
a) asked
b) assumed
c) mounted
d) raised

9. Audit firms should have a responsibility to Cohere to the highest

quality auditing practices, on a world-wide basis, to ensure that they
are performing effective audits of global companies participating in
the international capital markets.
a) abide
b) adhere
c) cohere
d) comply

22
10. Historically, audit firms have developed internal quality control
systems based on their domestic operations; how ever, as clients of
audit firms have shifted their focus to global operations, audit firms
have followed Along and now operate on a world-wide basis.
a) along
b) practice
c) precedent
d) suit

Test №86 Taxes

1. If you are self-employed, it is your responsibility to Calculate how

much tax you should legally pay.

a) consider
b) complete
c) correct
d) calculate

2. I had a letter from the office of the Collector of Taxes telling me that I
had to pay back all the money I Owed over the last 3 years.
a) due
b) indebted
c) owed
d) owned

3. The arrangement they have is that all the money that has to be paid in
tax out of their earnings comes from their Joined account.
a) joined
b) conjoined
23
 c) joined up
d) joint

4. Under the current legislation if you are late in paying your taxes, then
you have to face a financial Penalty .
a) penalty
b) punishment
c) pain
d) penalize

5. He is in a terrible rush to complete his tax returns by Tuesday

otherwise he won't be able to reach the Deadline .
a) dead end
b) deadline
c) dead date
d) dead stop

6. It doesn't happen very often but I actually got some money from the
tax office and with the Refund I'm going to treat myself.
remake
repeat
refund
respite

7. Before you can claim any money back on overpayment of tax, you
have to Fill out an application form.
a) fill for
b) fill out

24
 c) fill through
d) fill with

8. You can elect, if you want, to transfer your tax free allowance to your
Sponsor .

a) spouse
b) sponsor
c) spook
d) spokesperson

9. Until it's clearly established which tax group you are in, your
employer will be asked to Withhold a certain amount of your pay.
a) withstand
b) without
c) withhold
d) withal

10. There have been so many queries about his tax situation that there is
now a huge File containing the details in the office.
a) full
b) filled
c) filling
d) file

25