0% 123456789101112 TEST Duration: 10 minutesYour test has been automatically submitted due to the time-out.US Accounting (GAAP) Online AssessmentThis US Accounting and Finance aptitude test will help iConsultera evaluate your ability to measure, process, and communicate the financial information of a business, as well as your aptitude for logical, numerical, and verbal reasoning.This assessment is being used as an accounting test for pre-employment screening of candidates applying for a variety of roles, including staff accountant, financial accountant, and management accountant, or as a finance test for candidates applying for financial analyst or financial management positions.This test requires you to demonstrate aptitude for various kinds of reasoning as well as answer multiple-choice and calculation questions about the principles and core subjects within the accounting and finance disciplines. We at iConsultera are grateful to you for taking the online assessment of US Accounting (GAAP) to help us evaluate your generic skills across the US Accounting field. For any questions related to the assessment, please contact your respective Talent Acquisition personnel. 1 / 12 Category: US Accounting1. When a company purchases property, plant, and equipment, how is it reflected on the statement of cash flows? a. As a source of cash in the "cash from investing activities" section b. As a source of cash in the "cash from financing activities" section. c. As a use of cash in the "cash from operating activities" section. d. As a use of cash in the "cash from investing activities" section. 2 / 12 Category: US Accounting2. Which describes the double-declining balance depreciation method? a. The depreciation expense is larger in the first few years and gets smaller as time goes on. b. It yields reports of higher income in the early years and lower income later on. c. This method decreases the useful life of the asset and disposal costs by half. d. Estimated salvage value is greater at the end of the assets’ useful life than with straight-line depreciation. 3 / 12 Category: US Accounting3. Which is not classified as a current asset? a. Prepaid liabilities b. Property c. Cash d. Liquid assets e. Product inventory 4 / 12 Category: US Accounting4. Which is true about time in accounting? a. Accounts receivable are more easily collected as time passes. b. Balance sheets reflect a company’s financial position at a certain point in time. c. Current liabilities are debts payable within 2 years. d. The time value of money is a finance concept, not relevant in accounting. 5 / 12 Category: US Accounting5. What would the journal entry be for a company that takes out a five-year, $100,000 business loan? a. Debit $100,000 non-current asset, Credit $100,000 non-current liabilities b. Debit $100,000 current asset, Credit $100,000 non-current liabilities c. Debit $100,000 current liabilities, Credit $100,000 current assets d. Debit $100,000 non-current liabilities, Credit $100,000 non-current assets 6 / 12 Category: US Accounting6. Which of these statements about accrual accounting is true? a. All revenue from prepayments should be recognized when the payment is received, while expenses accrue over the life of the obligation. b. The matching principle dictates that expenses should be recognized when they are incurred, regardless of when revenue is recognized. c. If the business has provided the goods or services and can reasonably expect to receive cash, it can recognize the revenue in that period. d. Revenue is recorded only when payments are received, while expenses are recognized when they're incurred. 7 / 12 Category: US Accounting7. The listing of all the financial accounts within a company’s general ledger is called the _____. a. Chart of accounts b. Journal entry c. Balance sheet d. P&L statement 8 / 12 Category: US Accounting8. Unearned revenues are recorded on a company’s balance sheet under which kind of account? a. Current asset b. Liability c. Non-current asset d. Owners’ or stockholders’ equity 9 / 12 Category: US Accounting9. Which is the method of depreciation used for US tax returns that is not GAAP-compliant? a. Units of production method b. Modified accelerated cost recovery systems c. Double-declining balance method d. Straight-line method 10 / 12 Category: US Accounting10. What is the result of the following transaction for Company A? Company A’s customer is unable to pay for a previous credit sale in accordance with Company A’s 90-day payment terms. The customer makes a promissory note to Company A that extends payment over a 24-month term including 5% interest. a. Company A records the loan as a liability. b. No result because the customer didn’t pay. c. A note receivable is recorded in non-current assets. d. Accounts receivable increases because of the interest. 11 / 12 Category: US Accounting11. Which of the following is not a core financial statement? a. Statement of Cash Flows b. The Income Statement c. The Balance Sheet d. The Trial Balance 12 / 12 Category: US Accounting12. Which of the following account types increase by debits in double-entry accounting? a. Gains, Expenses, Liabilities b. Expenses, Liabilities, Losses c. Assets, Revenue, Gains d. Assets, Expenses, Losses 0%
