This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 104 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 104 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A basic assumption of accounting assumes that the money is A) Useless in measuring an economic event. B) The common unit of measure for all business transactions. C) A poor measure of economic activities. D) Unrelated to business transactions. Show Answer Correct Answer: B) The common unit of measure for all business transactions. 2. What is the CNSS of the employee knowing that the annual taxable gross is 98, 085.6 A) 852.3. B) 846.4. C) 835.6. D) 826.2. Show Answer Correct Answer: D) 826.2. 3. Which of the following is a correct journal entry for the receipt of payment from a customer? A) Debit Cash, Credit Sales Revenue. B) Debit Sales Revenue, Credit Accounts Payable. C) Debit Accounts Payable, Credit Cash. D) Debit Cash, Credit Accounts Receivable. Show Answer Correct Answer: D) Debit Cash, Credit Accounts Receivable. 4. A set of accounting rules and regulations used throughout the world (with the notable exception of the United States) in order to ease the process of comparing financial statements between companies in different countries. A) International Financial Reporting Standards (IFRS). B) International Accounting Reporting Standards (IARS). C) Universial Financial Reporting Standards (UFRS). D) Universial Accounting Reporting Standards (UARS). Show Answer Correct Answer: A) International Financial Reporting Standards (IFRS). 5. Jack owns 80% of Nick. During 2016, Nick sold goods costing $ 1, 500 to Jack at a gross profit of 25%. Jack had $ 200 of these goods on hand at the end of the year. What is the journal entry to eliminate intercompany ownership for consolidation purpose? A) Dr. Noncontrolling interest $ 50Cr. Noncontrolling interest share 50. B) Dr. Noncontrolling interest $ 200Cr. Noncontrolling interest share $ 200. C) Dr. Noncontrolling interest $ 10Cr. Noncontrolling interest share $ 10. D) Dr. Noncontrolling interest $ 300Cr. Noncontrolling interest share $ 300. E) None of the above. Show Answer Correct Answer: C) Dr. Noncontrolling interest $ 10Cr. Noncontrolling interest share $ 10. 6. A private nonprofit board that establishes specific rules and regulations for recording economic events in an accounting system. A) Financial Accounting Standards Board (FASB). B) American Institute of Certified Public Accountants (AICPA). C) Public Company Accounting Oversight Board (PCAOB). D) International Financial Reporting Standards (IFRS). Show Answer Correct Answer: A) Financial Accounting Standards Board (FASB). 7. The revenue which is received before goods have been delivered or services have been rendered is called A) Earned revenue. B) Prepaid revenue. C) Deferred revenue. D) Uncollected revenue. Show Answer Correct Answer: C) Deferred revenue. 8. What is the main objective of accounting? A) To show the value of shares in the company. B) To provide information on business activities to interested users. C) To help management to plan its business activities. D) To show managers the results of their departments. Show Answer Correct Answer: B) To provide information on business activities to interested users. 9. What steps have been taken by NTPC towards environment protection? A) Adopting latest technique. B) Minimising waste management by maximising ash utilisation. C) Afforestation and green belt. D) All of these. Show Answer Correct Answer: D) All of these. 10. As of June 30, 2020, Little Giantz Company has assets of $ 100, 000 and owner's equity of $ 60, 000. What are the liabilities for Little Giantz Company as of June 30, 2020? A) $ 160, 000. B) $ 100, 000. C) $ 60, 000. D) $ 40, 000. Show Answer Correct Answer: D) $ 40, 000. 11. Financial accounting has a primary purpose pf providing economic and financial information for all of the following except A) Creditors. B) Investors. C) Managers. D) Other external users. Show Answer Correct Answer: C) Managers. 12. A promise by a business to pay for future expenses of a product sold. A) Wages payable. B) Liability. C) Product Liability. D) Warranty. Show Answer Correct Answer: D) Warranty. 13. Which of following best describes what a Profitability Ratio measures? A) Income or operating success for a given period of time. B) Current market price of a company share relative to its per-share earnings. C) How well a company can meet its short-term financial liabilities. D) Net income available for payment to the holders of its common stock. Show Answer Correct Answer: D) Net income available for payment to the holders of its common stock. 14. Sales return book record A) Return of goods sold. B) Return of goods purchased. C) Cash sales. D) None of the above. Show Answer Correct Answer: A) Return of goods sold. 15. Prepared to test the equality of the debits and credits. A) Posting. B) Trial Balance. C) Footing. D) Ledger. Show Answer Correct Answer: B) Trial Balance. 16. What is correct entry for loss on revaluation asset? A) Dr revaluation account Cr old partner's capital account. B) Dr Assets account Cr Revaluation account. C) Dr Revaluation account Cr assets account. D) Dr old partner's capital account Cr revaluation account. Show Answer Correct Answer: D) Dr old partner's capital account Cr revaluation account. 17. Gave birth to Double Entry System A) Marshall. B) Batliboi. C) Pickles. D) Lucas Pacioli. Show Answer Correct Answer: D) Lucas Pacioli. 18. The benefits of full convergence with the International Financial Reporting Standards (IFRS) would be:i. Assist Malaysian businesses to operate in an increase global environment.ii. Greater credibility and transparency to financial reporting in Malaysia.iii. Facilitate worldwide comparability which make it easier for the global investors to understand and rely on the financial statements prepared by the Malaysian companies.iv. Enhance national reputation of Malaysia as being in compliance with International Accounting Standards. Which of the above statements is TRUE? A) All of the above. B) I and ii. C) I, ii and iii. D) I, ii, and iv. Show Answer Correct Answer: A) All of the above. 19. What level of KKLT accounting assumptions are there? A) Level 1. B) Level 2. C) Level 3. D) Special level. Show Answer Correct Answer: C) Level 3. 20. On September 1, 2011, Entity A entered into an agreement to rent office space for a year and paid $ 36, 000 for a six-month rent. Prepare journal entries on the following dates:December 31, 2011 A) Rent expense (D) 24.000 Prepaid rent (K) 24.000. B) Rent expense (D) 9.000 Prepaid rent (K) 9.000. C) Prepaid rent (D) 24.000Rent Expeses (K) 24.000. D) Prepaid rent (D) 9.000Rent Expeses (K) 9.000. Show Answer Correct Answer: A) Rent expense (D) 24.000 Prepaid rent (K) 24.000. ← 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