This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In the balance sheet of a social club, subscription owing is treated as a A) Current liability. B) Current asset. C) Tangible assets. D) Long-term liability. Show Answer Correct Answer: B) Current asset. 2. Royalty account is a nominal account in nature. A) True. B) False. Show Answer Correct Answer: A) True. 3. Ascertain purchases from the following:Cost of goods sold 80700Opening stock 5800Closing stock 6000 A) 80900. B) 60900. C) 50900. D) None of above. Show Answer Correct Answer: A) 80900. 4. Credit notes that are sent to customer as result of prompt payment discount will be entered into ..... A) Discount receive day book. B) Discount allowed day book. C) Sales day book. D) Purchase day book. Show Answer Correct Answer: B) Discount allowed day book. 5. Which account is on the Statement of Changes in Equity A) Revenue. B) Cash. C) Loan. D) M. Smith, capital. Show Answer Correct Answer: D) M. Smith, capital. 6. Accounting standards are..... A) Consensus on recording economic resources, liabilities, capital, results, costs and changes thereto in the form of financial reports. B) Document transactions that must be recorded, disclosed and presented in the Financial Report. C) Useful approach to decision-usefulness. D) All true. Show Answer Correct Answer: A) Consensus on recording economic resources, liabilities, capital, results, costs and changes thereto in the form of financial reports. 7. Bank reconciliation A) Helps with internal control. B) Is conducted by multiple people in a company. C) Reduces the amount of cash on hand. D) Controls cash payments. Show Answer Correct Answer: A) Helps with internal control. 8. Historical cost less accumulated depreciation is referred to as: A) Net book value. B) Fair market value. C) Depreciable cost. D) Loss on sale. Show Answer Correct Answer: A) Net book value. 9. The Matching Concept states that revenue should only be recognised when it is earned and not received. If a company sells goods on credit in March and receives payment in May, this would be shown in the sales figure for? A) The month the goods were sold. B) The month the goods were produced. C) The month the cash is creceived from the customer. D) None of the above. Show Answer Correct Answer: A) The month the goods were sold. 10. Costs that are not added to the purchase price of fixed assets in connection with efforts to place said fixed assets in a place and condition that is ready for use are..... A) Value-added tax. B) Freight Costs. C) Installation costs. D) Advertising Costs. Show Answer Correct Answer: D) Advertising Costs. 11. Depreciation is a charge against profit. A) True. B) False. Show Answer Correct Answer: A) True. 12. Send bills to collect money from customers for unpaid service fees. You can save your account by A) Debit payable, credit cash. B) Debit cash, credit creditor. C) Debit Accounts Receivable, Credit Cash. D) Debit accounts receivable, credit service income. Show Answer Correct Answer: D) Debit accounts receivable, credit service income. 13. Journal entry will be made when the premium amount is payable on allotment- A) Share Allotment A/c Dr.Securities Prem. A/c Dr.To Share Capital A/c. B) Share Allotment A/C Dr.To Share Capital A/c To Securities Prem. A/c. C) Bank A/c Dr.To Share Capital A/c To Securities Prem. A/c. D) Share Allotment A/c Dr.Securities Prem. A/c Dr.To Bank A/c. Show Answer Correct Answer: B) Share Allotment A/C Dr.To Share Capital A/c To Securities Prem. A/c. 14. Which branch of accounting is less regulated? A) Audit. B) Tax accounting. C) Managerial accounting. D) Financial accounting. Show Answer Correct Answer: C) Managerial accounting. 15. Perpetual Inventory system is a ..... count of all inventory in a corporation. A) Continuous. B) Hand count. C) One time per year. D) End of fiscal period. Show Answer Correct Answer: A) Continuous. 16. Revenue = 1000Cost of Goods Sold = 200Expenses = 300Gross Profit =? A) 800. B) 500. C) 700. D) 300. Show Answer Correct Answer: A) 800. 17. On January 2 2011, ABC company purchased a machine for Rp. 100, 000, 000 with an economic life of 4 years. The machine has no residual value. What is the book value at the end of 2012 using the double declining balance method? A) Rp. 12.500.000. B) Rp. 25.000.000. C) Rp. 50.000.000. D) Rp. 6.250.000. E) Rp. 75.000.000. Show Answer Correct Answer: B) Rp. 25.000.000. 18. Under hire purchase system the buyer is called ..... A) Buyer. B) Hirer. C) Hire Vendor. D) Debtor. Show Answer Correct Answer: B) Hirer. 19. During 2018, Jack sold goods costing $ 400 to its subsidiary, Chan, at a mark-up of 25%. Chan had $ 100 of these goods on hand at Dec 31, 2018. What is the elimination worksheet entry to defer profit in ending inventory? A) Dr. Sales $ 20Cr. Cost of sales $ 20. B) Dr. Sales $ 25Cr. Cost of sales $ 25. C) Dr. Cost of sales $ 20Cr. Inventory $ 20. D) Dr. Inventory $ 25Cr. Cost of sales $ 25. E) Dr. Sales $ 25Cr. Cost of sales $ 25. Show Answer Correct Answer: C) Dr. Cost of sales $ 20Cr. Inventory $ 20. 20. Under the equity method, the investor records dividendsreceived by crediting: A) Dividend Revenue. B) Investment Income. C) Revenue from Investment. D) Stock Investments. Show Answer Correct Answer: D) Stock Investments. ← PreviousNext →Related QuizzesAccounting QuizzesFinancial Accounting Quiz 1Financial Accounting Quiz 2Financial Accounting Quiz 3Financial Accounting Quiz 4Financial Accounting Quiz 5Financial Accounting Quiz 6Financial Accounting Quiz 7Financial Accounting Quiz 8Financial Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books