This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 100 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 100 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. On 7 April 2020, you received the bank statement for March and found that a RM 12, 000 cheque, which was drawn on 10 September 2020 and paid to the creditor, had not been presented to the bank. A) In Cash Book, Dr Cash and Cr Creditor. B) In Cash Book, Dr Creditor and Cr Cash. C) Bank Rec. item, Add to bank balance. D) Bank Rec. item, less from cash book bal. Show Answer Correct Answer: A) In Cash Book, Dr Cash and Cr Creditor. 2. Profit = capital at the end+drawings-additional capital ..... A) Opening capital. B) Closing capital. C) Loss. D) None of these. Show Answer Correct Answer: A) Opening capital. 3. Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A) Accrual basis accounting. B) Cash basis accounting. C) Tax basis accounting. D) Revenue basis accounting. Show Answer Correct Answer: A) Accrual basis accounting. 4. The following statements are TRUE regarding the Malaysian Private Entities Reporting Standard (MPERS) and private entities EXCEPT: A) MPERS is also applicable to the public companies in Malaysia. B) MPERS is a self-contained Standard that is applicable only to private entities. C) A private entity is defined as a private company that is not required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia. D) Private company can choose whether to comply with the MPERS or MFRS. Show Answer Correct Answer: A) MPERS is also applicable to the public companies in Malaysia. 5. It is because of this concept that fixed assets are recorded at their original cost and depreciation in a systematic manner without reference to their current realizable value. A) Going Concern Concept. B) Realisation Concept. C) Historical Concept Concept. D) Money Measurement Concept. Show Answer Correct Answer: A) Going Concern Concept. 6. A lawyer collected RM52, 000 of legal fees in advance. He erroneously debited Cash for RM27, 000 and credited Accounts Receivable for RM25, 000. The correcting entry is A) DR Cash 25, 000DR Accounts Receivable 27, 000CR Unearned Service Revenue 52, 000. B) DR Cash 52, 000CR Service Revenue 52, 000. C) DR Cash 27, 000DR Accounts Receivable 25, 000CR Unearned Service Revenue 52, 000. D) DR Cash 27, 000CR Accounts Receivable 27, 000. Show Answer Correct Answer: C) DR Cash 27, 000DR Accounts Receivable 25, 000CR Unearned Service Revenue 52, 000. 7. Adjusting entries are designed primarily to correct errors made by bookkeepers. A) True. B) False. Show Answer Correct Answer: B) False. 8. Which side does Discount Allowed belong? A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 9. What are two theories of regulation in political issues? A) Public interest theory and interest group theory. B) Public interest theory and agency theory. C) Agency theory and capture theory. D) Public interest theory and capture theory. Show Answer Correct Answer: A) Public interest theory and interest group theory. 10. ONE REASON THAT AN ENTITY IS ALLOWED TO CHANGE ITS ACCOUNTING POLICY IS WHEN A) IT IS REQUIRED BY ACCOUNTING STANDARD. B) IT IS REQUIRED BY LAW. C) IT IS ORDERED BY MANAGEMENT. D) ALL OF THESE. Show Answer Correct Answer: A) IT IS REQUIRED BY ACCOUNTING STANDARD. 11. Which of the following statements is not part of the share issuance procedure: A) The government gives full power to companies in issuing bonds. B) Shareholders and the board of directors must approve the bond issuance. C) Shareholders must determine the amount of bonds to be authorized. D) The conditions for issuing bonds are regulated in a legal document called a bond indenture. Show Answer Correct Answer: C) Shareholders must determine the amount of bonds to be authorized. 12. Commission Received account is a A) Personal Account. B) Nominal Account. C) Real Account. D) Impersonal Account. Show Answer Correct Answer: B) Nominal Account. 13. How does financial accounting differ from managerial accounting? A) Financial accounting focuses on internal decision-making, while managerial accounting focuses on external reporting to stakeholders. B) Financial accounting and managerial accounting are the same and can be used interchangeably. C) Financial accounting is only used by small businesses, while managerial accounting is only used by large corporations. D) Financial accounting focuses on external reporting to stakeholders, while managerial accounting focuses on internal decision-making for management. Show Answer Correct Answer: D) Financial accounting focuses on external reporting to stakeholders, while managerial accounting focuses on internal decision-making for management. 14. Entries to expenses such as Rent Expense are usually A) Debits. B) Credits. Show Answer Correct Answer: A) Debits. 15. What type of business operates with a limited amount of capital? and it is difficult to expand the business A) One owner. B) Partnership. C) Limited company. D) Public limited company. Show Answer Correct Answer: A) One owner. 16. XYZ Bhd took over the business of a partnership at a price of RM300, 000. The assets taken over were valued at RM450, 000 and the liabilities at RM100, 000. Which of the following does the difference of RM50, 000 refer to? A) Goodwill. B) Net worth. C) Capital Reserve (Gain On Bargain Purchase). D) Revenue Reserve. Show Answer Correct Answer: C) Capital Reserve (Gain On Bargain Purchase). 17. A company using the accrual method of accounting performed services on account in August. The services were for $ 2, 000 and the company gave the customer credit terms that state the amount is to be paid to the company in September.In September when the company receives the $ 2, 000 from the customer, which account should the company credit? A) Cash. B) Accounts Receivable. C) Service Revenue. D) None of above. Show Answer Correct Answer: B) Accounts Receivable. 18. What is the total cost with sales tax? Price $ 2.75 Tax 5% A) $ 2.89. B) $ 3.00. C) $ 0.14. D) $ 2.75. Show Answer Correct Answer: A) $ 2.89. 19. Which of the following corresponds to Compound Entries? A) Posting. B) Reference. C) Item included. D) Finding the balance. Show Answer Correct Answer: C) Item included. 20. Another name for this balance sheet is Statement of Profit or Loss A) Income statement. B) Balance sheet. C) Statement of Changes in Equity. D) Statement of Cash Flows. Show Answer Correct Answer: A) Income statement. ← 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