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Financial Accounting teaches key accounting concepts and principles to illuminate financial statements and unlock critical insights into business performance and potential. The Digital Adda organizes various quizzes on various areas, one of which is the Finance and Accounting Certification.

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Finance & Accounting Certification

Here are the question and answers-

Q.1 The amount of cash paid in acquiring an asset is called what?

  1. Present Value
  2. Historical Value
  3. Net Realizable Value
  4. Current Replacement Cost

Q.2 This statement reports the net cash flows relating to operating, investing, and financing activities for a while.

  1. Income Statement
  2. Unadjusted Trial Balance
  3. Statement Of Cash Flows
  4. Comparative Balance Sheet

Q.3 A holding period _____________________. 

  1. Is always a year
  2. Is always a month
  3. Is always a quarter
  4. Can be any length of time

Q.4 How many stocks are included in the DOW?

  1. 20
  2. 30
  3. 100
  4. 500

Q.5 The government agency that has full authority to set working accounting methods in the U.S is?

  1. FAA
  2. FASB
  3. SEC
  4. EEOC

Q.6  A ____ lists each of the accounts in the general ledger with its balance as of a particular date. What is it?

  1. Statement Of Retained Earnings
  2. Balance Sheet
  3. Trial Balance
  4. General Journal

Q.7 Which stock would an investor with a high-risk tolerance prefer?

  1. Stock A has a mean return of 7% and a standard deviation of 2%.
  2. Stock B has a mean return of 7% and a standard deviation of 10%.
  3. Stock C has a mean return of 12% and a standard deviation of 10%.
  4. Stock D has a mean return of 12% and a standard deviation of 20%.

Q.8 These are economic resources with the ability or potential to provide future benefits.

  1. Assets
  2. Liabilities
  3. Shareholder’s Equity
  4. Retained Earnings

Q.9 What does the standard deviation measure?

  1. The gain on the investment.
  2. The holding period
  3. Risk
  4. The amount of dividend.

Q.10 Which is an example of an intangible asset?

  1. Cash
  2. Tools & Equipment
  3. Supplies
  4. Patent

Q.11 In the financial markets, what is the DOW used for?

  1. It is a measure of specific risk
  2. It is a measure of market risk
  3. It measures stock price levels for the entire market
  4. It measures the level of dividends paid by various companies

Q.12 Which financial statement shows the results of the operating activities of a firm for a specific period?

  1. Trial Balance
  2. Balance Sheet
  3. Income Statement
  4. Statement Of Cash Flows

Q.13 When the revenue generated is greater than overall expenses, you have a ___?

  1. Net Loss
  2. Net Income
  3. Contributed Capital
  4. Historical Valuation

Q.14 Earnings that a firm realizes more than dividends are called what?

  1. Income Statement
  2. Revenues
  3. Retained Earnings
  4. Expenses

Q.15 Assets – Liabilities = ____?

  1. Net Income
  2. Revenue
  3. Net Loss
  4. Shareholder’s Equity

Get Finance & Accounting Certificate from The Digital Adda which you can share in the Certifications section of your LinkedIn profile, on printed resumes, CVs, or other documents.

Go to https://thedigitaladda.com/finance-accounting-certification-the-digital-adda/

 

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