Daily Archives: October 13, 2015

Accounts Payable Test

1. What level of detail should invoices contain? Answers: Summary, only the total due Totals by item Totals by date Specific details - dates, quantities, individual pricing 2. Why do companies require deposits & advances? Answers: They don't trust the customers to pay It improves cash flow, especially for long duration projects They want to [...]

By | October 13th, 2015|Upwork Finance and Accounting|0 Comments

Accounting Skills Test (Cash Flow)

1. Which of the following would be included in the investing section of a cash flow statement? Answers: Proceeds from sale of equipment Proceeds from sale of long-term investments Proceeds from sale of marketable securities All of the above would be included in the investing section. 2. In 2007, XYZ Company had a net loss [...]

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Accounting Principles Test

1. Which of the following is a method of timing business transactions or choosing accounting principles so that the firm reports smaller variations in income from year to year than it would otherwise? Answers: Conservatism Income Smoothing Profit Maximization Least and Latest Rule 2. What is the accounting objective which best relates to the percentage [...]

By | October 13th, 2015|Upwork Finance and Accounting|0 Comments