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Question: What is the primary purpose of a journal entry in accounting?Options: To summarize financi..
Question: What is the formula for calculating return on equity (ROE)?Options: Net income / Total ass..
Question: What is the primary focus of accounting standards?Options: To maximize profitsTo ensure co..
Question: Which ratio is used to measure a company\'s liquidity?Options: Debt to equity ratioCurrent..
Question: What is the effect of inventory valuation on financial statements?Options: It affects only..
Question: Which accounting principle requires that expenses be matched with revenues?Options: Revenu..
Question: Which of the following methods is NOT used for inventory valuation?Options: FIFOLIFOWeight..
Question: Which of the following is a liquidity ratio?Options: Debt to Equity RatioCurrent RatioRetu..
Question: What is the effect of an overstatement of ending inventory on the financial statements?Opt..
Question: Which accounting standard governs the valuation of inventory?Options: IFRS 15IAS 2IFRS 9IA..
Question: What is the journal entry to record depreciation expense?Options: Debit Depreciation Expen..
Question: Which inventory valuation method results in the highest ending inventory during inflation?..
Question: What is the purpose of a trial balance?Options: To prepare financial statementsTo ensure t..
Question: What is the journal entry to record the sale of goods for cash?Options: Debit Cash, Credit..
Question: What is the journal entry for recording depreciation expense?Options: Debit Depreciation E..
Question: Which inventory valuation method can lead to lower taxes during inflation?Options: FIFOLIF..
Question: What is the impact of using straight-line depreciation on financial statements?Options: It..
Question: What is the journal entry to record the sale of inventory at a profit?Options: Debit Cash,..
Question: Which accounting standard requires the use of fair value for certain financial instruments..
Question: What is the effect of an error in the trial balance?Options: It will not affect the financ..
Question: How is inventory valued under the FIFO method?Options: Based on the most recent purchasesB..
Question: What is the journal entry for recording depreciation expense on equipment?Options: Debit D..
Question: Which of the following is a characteristic of LIFO inventory valuation?Options: Matches cu..
Question: What is the effect of an overstatement of inventory on the financial statements?Options: U..
Question: Which ratio measures a company\'s ability to meet its long-term obligations?Options: Curre..
Question: What is the primary purpose of adjusting entries?Options: To close the booksTo correct err..
Question: Which inventory valuation method results in the highest ending inventory during periods of..
Question: What does a debt-to-equity ratio of 1 indicate?Options: Equal financing from debt and equi..
Question: Which of the following is NOT a component of the income statement?Options: RevenueExpenses..
Question: In a case study, if a company\'s current ratio is 2:1, what does this indicate?Options: Th..
