The Advanced Numeracy Test Workbook - Mike Bryon [10]
Q20. The process of resolving a difference between two accounts is called:
A Regressive analysis
B Accounting
C An adjustment
D A reconciliation
Answer
Q21. An auditor reports a specific uncertainty by adding to his or her statement:
A An opinion
B A reservation
C A ruling
D A qualification
Answer
Q22. Net income divided by net sales gives:
A The revenue
B Taxable income
C Tax profit margin
D The gross turnover
Answer
Q23. To post a debit or credit is to:
A Balance it
B Transfer it from the journal to the ledger
C Reconcile it
D Enter it on a journal
Answer
Q24. Total sales before for example deducting returns and discounts is:
A Net sales
B Gross sales revenue
C Gross sales
D Sales before costs of sales
Answer
Q25. Which of the following is not an example of a fixed cost?
A Taxes
B Insurance
C Materials
D Rent
Answer
Q26. Another term meaning net worth is:
A Profit
B Gross value
C Equity
D Net income
Answer
Q27. Which of the following is not an example of earned income?
A Basic wage before commission
B Tips
C Commission
D Cash dividend
Answer
Q28. A payment by cash is called:
A A receivable
B A disbursement
C A revenue
D An income
Answer
Q29. In double entry bookkeeping, debits:
A Increase expenses and decrease revenue
B Decrease expenses and increase revenues
C Increase liabilities and decrease assets
D None of these
Answer
Q30. In double entry bookkeeping, a credit:
A Increases expenses and decreases revenues
B Decreases expenses and increases revenues
C Increases liabilities and increases assets
D None of these
Answer
Q31. The difference between sales and cost of sales is:
A Net profit
B Taxable profit
C Profit before tax
D Gross profit
Answer
Q32. The cost to acquire goods or services makes it:
A An asset
B A revenue
C A liability
D None of these
Answer
Q33. The net amount shown as the worth of an asset is called:
A Value in use
B Value added
C Depreciation
D Book value
Answer
End of test
Test 3: Business comprehension
Test instructions
The following test comprises 95 questions. This makes it a test of endurance as well as a test of comprehension.
You are required to indicate which of the suggested answers is most correct.
The test consists of a series of questions and labelled suggested answers to choose from. You are required to select one of the suggested answers as the correct one and to record that answer’s identifying label in the answer box. This means that the answer to all the questions will be either A, B, C or D, depending on the number of suggested answers.
Attempt all questions in the allowed time and work without interruption or pause.
A calculator is not required.
Answers and many explanations are provided on pages 202–09 and an evaluation of your score is provided on pages 244–45.
Allow yourself 50 minutes to attempt all the questions.
Do not turn the page until you are ready to begin.
Q1. A liability without limit or fault:
A Results from negligence
B Is dependent on an intentional act
C Is shared jointly with others
D None of the above
Answer
Q2. Absorbed costs are:
A Not passed on to the customer
B Indirect manufacturing costs
C Always fixed and never variable
D Costs that have lost their identity
Answer
Q3. The actual cost of something is:
A The market value
B The insurance value
C The amount paid
D The amount paid plus interest or debt incurred as a result of the purchase
Answer
Q4. An actuary is:
A Someone qualified in the calculation of exchange rates and currency values
B Someone qualified in accountancy
C Someone qualified in the writing of deeds and contracts
D Someone qualified in the calculation of risk and premiums
Answer
Q5. An example of a conglomerate is:
A A relationship between two parties
B The sum total of the whole, ie all outputs during a given period
C Inefficiency and loss resulting from agglomeration
D A holding company comprising trading entities active in unrelated areas
Answer
Q6. Total output in macroeconomics is:
A All goods