Scale with Pros | Account Proficiency Test

1
On a one to ten, with ten being the highest and one being the lowest, how proficient do you think you are with business accounting concepts?
Please Select
Please Select
1 - Low Accounting Knowledge
2
3
4
5
6
7
8
9
10 - Great Accounting Business Knowledge
2
In what financial statement do you find revenues, expenses, and your net income?
Statement of Cash Flows
Balance Sheet
Profit and Loss
General Ledger
3
What is the metric that gives you the best idea of how much money you made on a product sale? (Revenues minus direct costs)
Revenues
Net Margin
Cost of Goods Sold
Gross Profit
4
If you wanted to find an expense you had last year to see if a current price was comparable, what would you do?
Look at your profit and loss statement, it should be there
Open your balance sheet and search for the vendor
Open your general ledger for the previous year and search for the vendor
Just call the vendor, this is too hard.
5
In your accounting system, how would you see how you did operationally this year versus last year?
Open the balance sheet versus last year
Open the profit and loss or income statement and add another column for last year
Go to the general ledger and search for the last two years.
6
If your company is using a cash basis of accounting and a vendor is two months late sending you an invoice, can you accrue for the invoice in the correct period?
TRUEFALSE
7
What does "accrue for an expense" actually mean?
It means lowering your cash by the cost of the vendor invoice
It means accounting for a cost even though it hasn't been paid
It means you reduce your revenues by the amount of the expense
I've never heard of this
8
Where do you find how much money I received or lost in a period?
Statement of Cash Flows
Balance Sheet Equity
Profit and Loss
General Ledger
9
You have a very large bill that you have to pay for once a year. It really lowers your net income for that period, if you are an accrual based company, what's the best way to account for this in your books?
Call the vendor and pay parts of the bill each month
Change vendors to one that you can pay monthly
Accrue for the expense monthly using prepaid expenses or accrued expenses
10
If you bought a rental property in your LLC for $100,000 and renovated it for $20,000, held the property for five years and it is now worth $500,000. Every year you have repairs and maintenance of $1,000 on the house. On your books, how much is the house listed for as an asset?
I don't think it is an asset
$100,000
$120,000
$125,000
Easy, $500,000
11
Depreciation is an asset expense that lowers my cash
TRUEFASLE
12
SummaryYour Score Below - 80 or more is passing.
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