This quiz works best with JavaScript enabled. Home > Accounting > Accounting > Accounting – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 18 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An advantage of a sole proprietorship over the other forms of a business organization is A) You are the only boss and you keep all the profits. B) Although it is easier to form, it may be more difficult to raise financing. C) It has unlimited life. D) It has limited liability. Show Answer Correct Answer: A) You are the only boss and you keep all the profits. 2. Business activities can be divided into specific period such as a month, six months or a year. Which of the following accounting assumption applied? A) Consistency. B) Going concern. C) Materiality. D) Accounting period. Show Answer Correct Answer: D) Accounting period. 3. Historical cost, Revenue Recognition, Matching, and Full Disclosure are A) Accounting Assumptions. B) Accounting Constraints. C) Accounting Principles. D) Qualitative Characteristics. Show Answer Correct Answer: C) Accounting Principles. 4. An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion. A) Job order costing. B) Process costing. C) Added value costing. D) Just in time costing. Show Answer Correct Answer: B) Process costing. 5. The difference between assets and liabilities A) Revenue. B) Expense. C) Withdrawal. D) Equity. Show Answer Correct Answer: D) Equity. 6. Assets taken out of a business for the owner's personal use. A) Liabilities. B) Expenses. C) Assets. D) Withdrawals. Show Answer Correct Answer: D) Withdrawals. 7. Employees use accounting information to A) Run the business. B) Make lending decisions. C) Determine a company's profitability and profit sharing. D) Decide which products to buy from which companies. Show Answer Correct Answer: C) Determine a company's profitability and profit sharing. 8. Accounts used to accumulate information from one fiscal period to the next A) Special accounts. B) Temporary accounts. C) Permanent accounts. D) Income summary. Show Answer Correct Answer: C) Permanent accounts. 9. Assets accounts include cash, prepaid insurance and A) Sales. B) Accounts payable. C) Accounts receivable. D) Drawing. Show Answer Correct Answer: C) Accounts receivable. 10. Which branch of accounting is primarily concerned with the preparation of specific purpose financial statements for the management to base financial decisions on? A) Auditing. B) Financial accounting. C) Cost accounting. D) Tax accounting. E) Management Accounting. Show Answer Correct Answer: E) Management Accounting. 11. The target cost for a job using job costing is calculated as: A) Direct costs + desired profit. B) Expected selling price-direct costs. C) Expected selling price-desired profit. D) Expected selling price + desired profit. Show Answer Correct Answer: C) Expected selling price-desired profit. 12. The characterstics of accounting are A) Recording. B) Classifying. C) Summarizing. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. Power Sdn Bhd regularly changes accounting methods in order to report a target amount of net income each year. Which accounting concept is not comply by Power Sdn Bhd? A) Accrual. B) Duality. C) Materiality. D) Consistency. Show Answer Correct Answer: D) Consistency. 14. What is the primary service of CPAs in public practice? A) Auditing. B) Taxation. C) Controllership. D) Managerial Accounting. Show Answer Correct Answer: A) Auditing. 15. Understanding accounting regulations is difficult because ..... A) Regulations can be set by local, state, or federal government. B) Accounting regulations are purposely vague. C) All organizations use different accounting standards. D) Every industry has its own set of regulations. Show Answer Correct Answer: A) Regulations can be set by local, state, or federal government. 16. Pertama Sdn Bhd recorded their business transaction by using Ringgit Malaysia. A) Historical cost. B) Accounting period. C) Going concern. D) Monetary measurement. Show Answer Correct Answer: D) Monetary measurement. 17. Transferring information from a journal entry to a ledger account. A) Posting. B) Adjusting. C) Closing. D) All of these. Show Answer Correct Answer: A) Posting. 18. These are PRACTICAL CONSIDERATIONS that constrain or modify the application of the general principles. A) Accounting Constraints. B) Accounting Principles. C) Accounting Assumptions. D) Qualitative Characteristics. Show Answer Correct Answer: A) Accounting Constraints. 19. Compliance with filing of income tax A) Tax Accounting. B) Financial Accounting. C) Auditing. D) None of above. Show Answer Correct Answer: A) Tax Accounting. 20. How would you journalize a transaction in which you paid on account with an electronic funds transfer? A) Debit Cash and credit Accounts Payable. B) Debit Accounts Payable and credit EFT. C) Debit EFT and credit Accounts Receivable. D) Debit Accounts Payable and credit Cash. Show Answer Correct Answer: D) Debit Accounts Payable and credit Cash. ← PreviousNext →Related QuizzesAccounting QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books