This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Goodwill WILL BE INCLUDED A) PERSONAL ACCOUNT. B) NOMINAL ACCOUNT. C) REAL ACCOUNT. D) NONE OF THE ABOVE. Show Answer Correct Answer: C) REAL ACCOUNT. 2. Which of the following is one of the possible nonrecurring items that must be shown in a separate line item BELOW the Income from Continuing Operations subtotal in the income statement? A) A. Gains and losses from the sale of fixed assets. B) B. Discounted operations. C) C. Extraordinary items. D) Both A and B. Show Answer Correct Answer: B) B. Discounted operations. 3. Types of Accounts? A) Personal. B) Real. C) Nominal. D) All the above. Show Answer Correct Answer: D) All the above. 4. It is a measurement of financial position of the company. A) Income Statement. B) Balance Sheet. C) Cash Flow Statement. D) Adequate disclosure Principle. Show Answer Correct Answer: B) Balance Sheet. 5. At the time of partnership liquidation, which credits shall be settled first? A) Those amounts owing to third persons. B) Those amounts owing to partners other than capital contribution and share in profit. C) Those amounts owing to partners with respect to capital contribution. D) Those amounts owing to partners with respect to share in profit. Show Answer Correct Answer: A) Those amounts owing to third persons. 6. An expense is termed an accrual because it A) Is yet to be paid for. B) Is a profit and loss account item. C) Must appear in the balance sheet. D) Is a trading account item. Show Answer Correct Answer: A) Is yet to be paid for. 7. What is the correct adjusting entry for accumulated depreciation? A) Dr Accumulated DepreciationCr Depreciation Expense. B) Dr LandCr Accumulated Depreciation-Land. C) Db Depreciation ExpenseCr Cash. D) Dr Depreciation ExpenseCr Accumulated Depreciation. Show Answer Correct Answer: D) Dr Depreciation ExpenseCr Accumulated Depreciation. 8. Which statement looks at Costs, Expenses and Sales revenue at the end of a fiscal period? A) Balance Sheet. B) Cash Flow. C) Income statement. D) None of above. Show Answer Correct Answer: C) Income statement. 9. A receivables confirmation letter that is sent back to the Public Accountant to provide a response that the receivables data sent is incorrect is a confirmation letter A) Negative. B) End of year. C) Positive. D) Accounts receivable balance. Show Answer Correct Answer: A) Negative. 10. A weakness of the accrual basis accounting system is that it takes the focus off of: A) Stock. B) Inventory. C) Notes payable. D) Cash. Show Answer Correct Answer: D) Cash. 11. Parallel accounting consists of implementing multiple ledgers and using each ledger for different purposes. A) True. B) False. Show Answer Correct Answer: A) True. 12. Employees always receive the company's accounts and an employee report A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 13. Cash at bank is ..... a/c A) Real a/c. B) Nominal a/c. C) Expenses a/c. D) Personal a/c. Show Answer Correct Answer: A) Real a/c. 14. Records revenue when it is earned and matches expenses against the revenue they generate, even if cash is not received. A) Accrual accounting. B) Depreciation. C) Net Income. D) GAAP. Show Answer Correct Answer: A) Accrual accounting. 15. The best interpretation of the word credit is the A) Offset side of an account. B) Increase side of an account. C) Right side of an account. D) Decrease side of an account. Show Answer Correct Answer: C) Right side of an account. 16. Which side does Receipts from debtors belong? A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 17. Oracle Corporation reports information about pending lawsuits in the notes to its financial statements. A) Revenue Recognition. B) Matching. C) Full Disclosure. D) Historical Cost. Show Answer Correct Answer: C) Full Disclosure. 18. The balance sheet is a snapshot of the organization at a point in time. A) True. B) False. Show Answer Correct Answer: A) True. 19. Cash discount is classified into ..... A) 4. B) 3. C) 2. D) 1. Show Answer Correct Answer: C) 2. 20. Financial reports that summarize the financial condition and operations of a business A) Financial statements. B) Ethics. C) Withdrawals. D) Equities. Show Answer Correct Answer: A) Financial statements. Next →Related QuizzesAccounting QuizzesFinancial Accounting Quiz 2Financial Accounting Quiz 3Financial Accounting Quiz 4Financial Accounting Quiz 5Financial Accounting Quiz 6Financial Accounting Quiz 7Financial Accounting Quiz 8Financial Accounting Quiz 9Financial Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books