Interview Test 9 Test 9 Welcome to AADVIKMS! Empowering Finance Careers Connect with top finance professionals and employers for exciting opportunities. Total Number of Questions: 40 Time: 40 Minutes All the best... Kind Regards CMA Madhuri Kashyap & CMA Sandeep Kumar - Founder - International Navodaya Chamber of Commerce Name Email Phone State 1. What is the primary purpose of financial accounting? To determine tax liabilities To provide information for decision-making To forecast future expenses To record personal expenses None 2. Which of the following is not a financial statement? Balance Sheet Income Statement Cash Flow Statement Inventory Valuation Report None 3. The accounting concept that states revenue should be recognized when earned and expenses when incurred is called: Matching Concept Accrual Concept Consistency Concept Realization Concept None 4. The term “current asset” refers to assets that: Have a long useful life Are converted into cash within a year Are subject to depreciation Are not used for business operations None 5. The principle that requires expenses to be reported in the same period as the revenues they help to generate is: Prudence Principle Realization Principle Matching Principle Cost Principle None 6. Which of the following is a liability? Prepaid Insurance Accounts Receivable Accounts Payable Equipment None 7. The dual aspect concept states that: Assets = Liabilities Assets + Liabilities = Capital Assets = Liabilities + Owner’s Equity Assets + Expenses = Revenues None 8. Which of the following is an example of intangible assets? Machinery Inventory Patents Cash None 9. Depreciation is an application of which accounting principle? Going Concern Matching Revenue Recognition Prudence None 10. Which financial statement is prepared first? Balance Sheet Statement of Cash Flows Income Statement Statement of Owner’s Equity None 11. The accounting principle that suggests not overstating assets or income is: Consistency Prudence Materiality Realization None 12. A trial balance checks: Assets and liabilities Accuracy of transactions Arithmetical accuracy of accounts Profit and loss None 13. Which concept states that business transactions are separate from the owner’s personal transactions? Entity Concept Periodicity Concept Realization Concept Accrual Concept None 14. What is the primary purpose of a balance sheet? To record daily transactions To show the profitability of a company To reflect the financial position on a specific date To show cash flows None 15. The cost concept states that: Assets should be recorded at current market value Assets should be recorded at historical cost Assets should be recorded at fair value Assets should be recorded at replacement cost None 16. Which of the following is not a characteristic of a liability? Future outflow of resources Obligation to pay Ownership claim Arises from past transactions None 17. What does the term "liquidity" refer to? Profitability Long-term debt Ease of converting assets to cash Stability None 18. The money measurement concept implies that: Only items measurable in monetary terms are recorded All events are recorded Transactions are recorded at market value None of the above None 19. Which financial statement shows a company's cash inflows and outflows? Balance Sheet Income Statement Cash Flow Statement Statement of Equity None 20. The periodicity concept means: Financial statements are prepared at regular intervals Financial statements are prepared when needed Financial statements show future transactions Financial statements are never closed None 21. Which of the following is a real account? Sales Machinery Capital Rent None 22. Prepaid rent is classified as a(n): Asset Liability Expense Revenue None 23. An accounting period typically refers to: A calendar year A fiscal year A time interval for reporting A specific month None 24. The realization concept states that: Revenue is recognized when cash is received Revenue is recognized when earned Revenue is recorded when inventory is sold None of the above None 25. Which principle requires expenses to be recognized as soon as they are reasonably certain? Matching Prudence Realization Consistency None 26. Which of these is classified as a fixed asset? Cash Accounts Receivable Land Inventory None 27. What is another term for “profit and loss statement”? Income Statement Cash Flow Statement Balance Sheet Statement of Financial Position None 28. The concept that ensures similar items are treated consistently over time is: Accrual Consistency Entity Prudence None 29. Which principle suggests “do not overstate income or assets”? Realization Matching Prudence Consistency None 30. Which of the following is not an example of a current asset? Cash Accounts Receivable Inventory Equipment None 31. Inventory appears on the: Balance Sheet Income Statement Cash Flow Statement Statement of Equity None 32. The term “equity” refers to: Total assets Total liabilities Owner’s claim on assets Revenue None 33. Which account is classified as an expense? Sales Utilities Equipment Accounts Receivable None 34. Which of the following is a nominal account? Cash Capital Sales Inventory None 35. Which document is prepared to check for arithmetic accuracy of books? Balance Sheet Trial Balance Income Statement Cash Flow Statement None 36. The periodicity concept means Accounts are updated daily Financial reports are prepared annually Financial statements are closed regularly Transactions are recorded periodically None 37. A decrease in assets is recorded on the: Debit side Credit side Both sides None of the above None 38. Retained earnings are part of: Assets Liabilities Equity Revenue None 39. Unearned revenue is classified as: Revenue Asset Liability Expense None 40. Which statement reflects a company’s financial position at a point in time? Income Statement Cash Flow Statement Balance Sheet Statement of Retained Earnings None Thank you for participating in our test series! We hope it boosted your knowledge and prepared you well for finance job interviews. Keep leveraging what you've learned to build confidence and excel. Wishing you great success in your career journey! Time's upTime is Up!
