This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 102 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 102 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to the Companies Act, the commission payable to underwriter for underwriting shares should not exceed ..... %. A) 5. B) 10. C) 2.5. D) 1.5. Show Answer Correct Answer: A) 5. 2. A company has been successful in reducing the amount of sales returns and allowances. At the same time, a credit card company reduced the credit card discount from 3 percent to 2 percent. What effect will these changes have on the company's net sales, all other things equal? A) A. Net sales will not change. B) B. Net sales will increase. C) C. Net sales will decrease. D) Either B or C. Show Answer Correct Answer: B) B. Net sales will increase. 3. Which of the following would not be considered internal users of accounting data for a company? A) The president of a company. B) The controller of a company. C) Creditors of a company. D) Salesmen of the company. Show Answer Correct Answer: C) Creditors of a company. 4. Cheques issued but not presented in the bank are called ..... A) Un-presented check. B) Un-credited cheque. C) Un-collected cheque. D) Un-cleared cheque. Show Answer Correct Answer: A) Un-presented check. 5. The balance of trading account is transferred to ..... A) Balance sheet. B) Profit and loss account. C) Debtors account. D) Sales account. Show Answer Correct Answer: B) Profit and loss account. 6. Which account is not on the balance sheet A) Revenue. B) Unearned revenue. C) Equipment. D) Cash. Show Answer Correct Answer: A) Revenue. 7. What are the basic financial statements in accounting? A) Profit statement, equity sheet, and income statement. B) Income statement, balance sheet, and cash flow statement. C) Expense report, liability statement, and revenue statement. D) Cash flow report, income summary, and balance statement. Show Answer Correct Answer: B) Income statement, balance sheet, and cash flow statement. 8. Under this method, prepayments of expenses are initially debited to an asset account, and recognized as expense the incurred portion at the end of the period. A) Income Method. B) Expense Method. C) Asset Method. D) Liability Method. Show Answer Correct Answer: C) Asset Method. 9. Tams Company reported a net loss of P40, 000. Its net sales was P150, 000 and a gross profit was 20% of net sales. Operating expenses amounted to how much? A) P 130, 000. B) P 110, 000. C) P 70, 000. D) P 50, 000. Show Answer Correct Answer: C) P 70, 000. 10. Which type of business organisation has the following characteristics?-conducts business separate from its owners-the owners have limited liability-the organisation is a taxable entity A) Sole trader. B) Partnership. C) Company/corporation. D) None of the above. Show Answer Correct Answer: C) Company/corporation. 11. The FRSC has a chairman who had been or presently a senior practitioner in A) Any scope of accounting practice. B) Commerce & Industry. C) Public accountancy. D) Academe. Show Answer Correct Answer: A) Any scope of accounting practice. 12. In the Stock and Debtors Method of accounting, balance of Branch Stock Account shows either Gross Profit or Gross Loss. A) True. B) False. Show Answer Correct Answer: A) True. 13. Capital in Balance Sheet is aggregate of A) Capital + Drawings + net Profit. B) Capital-Net Profit. C) Capital-Drawings + Net Profit. D) Capital + Drawings + Net Profit. Show Answer Correct Answer: C) Capital-Drawings + Net Profit. 14. Accrued revenues A) Are also called unearned revenues. B) Are listed on the balance sheet as liabilities. C) Are paid in advance. D) At the end of one accounting period often result in cash payments in the next period. E) At the end of one accounting period often result in cash receipts from customers in the next period. Show Answer Correct Answer: E) At the end of one accounting period often result in cash receipts from customers in the next period. 15. Yellowjacket Company reported the following January purchases and sales data for its only product. Using the periodic LIFO Inventory costing method, what is the cost of the ending inventory? A) $ 1, 225. B) $ 1, 140. C) $ 2, 140. D) $ 2, 225. Show Answer Correct Answer: B) $ 1, 140. 16. Though the instalments of a hire purchase agreement may be equal. The interest element in each instalment is not the same A) True. B) False. Show Answer Correct Answer: A) True. 17. The main objective of depreciation is A) To show the previous profit. B) To calculate net profit. C) To reduce tax. D) To satisfy the tax department. Show Answer Correct Answer: C) To reduce tax. 18. Which of these is not an example of a Factory Overhead? A) Depreciation of Factory Machinery. B) Factory Rates. C) Factory Insurance. D) Direct Expenses. Show Answer Correct Answer: D) Direct Expenses. 19. In absence of partnership deed, partners are entitled to interest on capital @ 6% p.a. A) True. B) False. Show Answer Correct Answer: B) False. 20. Which financial statement displays the revenues and expenses of a company for a period of time? A) Income Statement. B) Balance Sheet. C) Cash Flow Statement. D) Statement of Owners' Equity. 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