Bank Examiner
1). Mortgage payable
Ans: Which one of the following is generally not considered a current liability?
2). Purchased goodwill
Ans: Which one of the following is generally considered an intangible asset?
3). An expense
Ans: Zeta Incorporated paid three months' rent in advance on its new store. At the
beginning of the next month, one month's rent must be recorded as:
4). Allowance for bad debts
Ans: To a bank, the allowance for loan and lease losses account is similar to:
5). Depreciation
Ans: allocates the cost of an asset over its useful life
6). Store display costs
Ans: General and administrative expenses on the income statement generally do not
include which of the following?
7). Revenues minus extraordinary items
Ans: Gross profit is calculated as:
8). The total assets and the net income at the end of the year
Ans: Which of the following pieces of information do you need to know to calculate the
return on assets for the year?
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, 9). Contingent liabilities
Ans: Possible future claims against a business are:
10). Growth in inventory caused by an increase in inventory days on hand
Ans: A major reason for business borrowing is:
11). Balance sheet
Ans: Current liabilities appear on the company's
12). Short term debts, accounts payable, accrued liabilities (wages, interest payable, taxes
payable, deferred revenues)
Ans: Current liabilities on a balance sheet include
13). Accretion
Ans: Asset growth through addition or expansion. Can occur through internal
development or mergers and acquisitions
14). Amortization
Ans: Paying off a debt in regular installments over a period of time. Also, the deduction
of capital expenses over a specific period of time. This method measures the
consumption of the value of intangible assets like patents and copyrights
15). Balance sheet components
Ans: Assets, liabilities, owners' equity
16). Current assets
Ans: Cash and cash equivalents, accounts receivable, prepaid expenses, inventory,
marketable securities
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1). Mortgage payable
Ans: Which one of the following is generally not considered a current liability?
2). Purchased goodwill
Ans: Which one of the following is generally considered an intangible asset?
3). An expense
Ans: Zeta Incorporated paid three months' rent in advance on its new store. At the
beginning of the next month, one month's rent must be recorded as:
4). Allowance for bad debts
Ans: To a bank, the allowance for loan and lease losses account is similar to:
5). Depreciation
Ans: allocates the cost of an asset over its useful life
6). Store display costs
Ans: General and administrative expenses on the income statement generally do not
include which of the following?
7). Revenues minus extraordinary items
Ans: Gross profit is calculated as:
8). The total assets and the net income at the end of the year
Ans: Which of the following pieces of information do you need to know to calculate the
return on assets for the year?
PaperStoc.com Page 1 of 12
, 9). Contingent liabilities
Ans: Possible future claims against a business are:
10). Growth in inventory caused by an increase in inventory days on hand
Ans: A major reason for business borrowing is:
11). Balance sheet
Ans: Current liabilities appear on the company's
12). Short term debts, accounts payable, accrued liabilities (wages, interest payable, taxes
payable, deferred revenues)
Ans: Current liabilities on a balance sheet include
13). Accretion
Ans: Asset growth through addition or expansion. Can occur through internal
development or mergers and acquisitions
14). Amortization
Ans: Paying off a debt in regular installments over a period of time. Also, the deduction
of capital expenses over a specific period of time. This method measures the
consumption of the value of intangible assets like patents and copyrights
15). Balance sheet components
Ans: Assets, liabilities, owners' equity
16). Current assets
Ans: Cash and cash equivalents, accounts receivable, prepaid expenses, inventory,
marketable securities
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