This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 103 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 103 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A form describing the goods or services sold, the quantity, the price, and the terms of sale. This is called a ..... A) Invoice. B) Check. C) Sales invoice. D) Journal. Show Answer Correct Answer: A) Invoice. 2. In the indirect method of preparing the statement of cash flows, depreciation expense is: A) Added back to net income. B) Deducted from net income. C) Ignored in the statement of cash flows. D) None of above. Show Answer Correct Answer: A) Added back to net income. 3. Quick ratio is A) 4:1. B) 3:1. C) 2:1. D) 1:1. Show Answer Correct Answer: D) 1:1. 4. What amount of comprehensive income should John Corporation report on its statement of profit or loss and other comprehensive income given the following net of tax figures that represent changes in a period? A) 86, 500. B) 89, 000. C) 89, 500. D) 90, 500. Show Answer Correct Answer: A) 86, 500. 5. Analysis of Financial Statements is significant: A) For Creditors. B) For Managers. C) For Employees. D) For all of the above. Show Answer Correct Answer: D) For all of the above. 6. The construction of a theory begins with observation and moves toward generalized conclusion. Reasoning from particular statements to general statements refer to A) Deductive approach. B) Inductive approach. C) Economic approach. D) Eclectic approach. Show Answer Correct Answer: B) Inductive approach. 7. Income and Expenditure account shows surplus/deficit of of a non trading concern A) True. B) False. Show Answer Correct Answer: A) True. 8. A ..... is part of the annual financial statements and is used to calculate the cost of goods produced. A) Manufacturing account. B) Prime cost. C) Cost of production. D) Work in progress. Show Answer Correct Answer: A) Manufacturing account. 9. If opening stock is Rs. 50, 000, purchase is Rs. 4, 20, 000 and closing stock is Rs. 30, 000, then what is the cost of goods sold- A) Rs. 4, 40, 000. B) Rs. 4, 70, 000. C) Rs. 4, 00, 000. D) Rs. 5, 00, 000. Show Answer Correct Answer: A) Rs. 4, 40, 000. 10. Company and Employees are otherwise called as internal users of accounting A) True. B) False. Show Answer Correct Answer: A) True. 11. Goodwill is recognized in partnership accounts when A) The business makes a huge profit. B) The business has good customer relationship. C) A partner is dormant. D) A new partner is admitted. Show Answer Correct Answer: B) The business has good customer relationship. 12. Debit the receiver & credit the giver is ..... account A) Personal. B) Real. C) Nominal. D) All the above. Show Answer Correct Answer: A) Personal. 13. Aidil and Imran are partners in a partnership. On 1/1/20, they admitted Asyraf as a new partner. Opening capital for Aidil is RM 85, 000 and Imran is RM 55, 500. Asyraf contributed RM 20, 000 cash as his capital. Profit on revaluation for Aidil amounted to RM 5, 000 and Imran amounted to RM 2, 500. What is Imran's closing balance of capital? A) RM 90, 000. B) RM 53, 000. C) RM 58, 000. D) RM 20, 000. Show Answer Correct Answer: C) RM 58, 000. 14. Which of the following differences would result in future taxable amount? A) Expenses or losses that are deductible after they are recognized in accounting income. B) Revenues or gains that are taxable before they are recognized in accounting income. C) Expenses or losses that are deductible before they are recognized in accounting income. D) Revenues or gains that are recognized in accounting income but are never included in taxable income. Show Answer Correct Answer: C) Expenses or losses that are deductible before they are recognized in accounting income. 15. Deposited 10, 000 in Bank. A) Cash A/C (Debit)-To Bank A/C (Credit). B) Bank A/C (Debit)-To Capital A/C (Credit). C) Bank A/C (Debit)-To Cash A/C (Credit). D) Cash A/C (Debit)-To Capital A/C (Credit). Show Answer Correct Answer: C) Bank A/C (Debit)-To Cash A/C (Credit). 16. Which of the following is current liability? A) Account receivable. B) Salary. C) Account payable. D) Drawing. Show Answer Correct Answer: C) Account payable. 17. What is the current year depreciation expense for 2022 for the following asset placed in service in 2020?cost of $ 20, 000Salvage value $ 5, 000Useful life of 5 years A) 3, 000. B) 4, 000. C) $ 250. D) $ 333.33. Show Answer Correct Answer: A) 3, 000. 18. As per AS-2 Inventory is valued at the lower of net realizable value and current replacement cost. A) True. B) False. Show Answer Correct Answer: B) False. 19. A type of business that provide services rather than products to customers A) Malaysia Airlines. B) Giant. C) He t. D) None of above. Show Answer Correct Answer: A) Malaysia Airlines. 20. The process of recording transfers of amounts from the general journal to individual accounts in the general ledger. A) Posting. B) Tweeting. C) Meeting. D) Writing. Show Answer Correct Answer: A) Posting. ← 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