This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 105 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 105 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. To decrease the balance in the following accounts, would you debit the account or would you credit the account?Accounts Payable A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 2. Retirement and death of a partner A) Is dissolution of partnership agreement. B) Is dissolution of firm. C) None of the above. D) None of above. Show Answer Correct Answer: A) Is dissolution of partnership agreement. 3. A debit may signify A) A decrease in an asset account. B) An increase in an asset account. C) An increase in a liability account. D) An increase in the owner's capital account. Show Answer Correct Answer: B) An increase in an asset account. 4. Fraud means..... A) Dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. B) Dishonest act by a manager that results in personal benefit to the manager at a cost to the CEO. C) The quality of having strong moral principles ; honesty and decency. D) The condition of being unified, unimpaired, or sound in construction. Show Answer Correct Answer: A) Dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. 5. All the following are reasons for disagreement between cash book and bank statement except A) Standing order. B) Bank Errors. C) Bank charges. D) Overdraft. Show Answer Correct Answer: D) Overdraft. 6. Labor Unions A) Internal User. B) External User. Show Answer Correct Answer: B) External User. 7. Every Debit has a corresponding & equal credit A) Single Entry. B) Double Entry. C) No Entry. D) All of the above. Show Answer Correct Answer: B) Double Entry. 8. If services are rendered for credit, then A) Assets will decrease. B) Liabilities will increase. C) Owner's equity will increase. D) Liabilities will decrease. Show Answer Correct Answer: C) Owner's equity will increase. 9. A profit from business operations (gross profit minus operating expenses) before deduction of interest and taxes A) Operating Profit. B) Profit before tax. C) Profit after tax. D) None of above. Show Answer Correct Answer: A) Operating Profit. 10. Sale proceeds of fixed assets are a ..... A) Capital profit. B) Revenue profit. C) Capital receipt. D) Revenue receipt. Show Answer Correct Answer: C) Capital receipt. 11. ..... is a major source of income for Non-profit organisation A) Subscription. B) Admission fee. C) Life members fee. D) Donation. Show Answer Correct Answer: A) Subscription. 12. Use of assets to generate revenues or pay expenses of a business, such as paying rent or receiving cash from sale. A) Operating activity. B) Financing activity. C) Investing activity. D) Accounting. Show Answer Correct Answer: A) Operating activity. 13. Who is the target audience of financial accounting? A) All employees of the business. B) Regulators and the public. C) Existing and potential investors, lenders, and creditors. D) Internal managers. Show Answer Correct Answer: C) Existing and potential investors, lenders, and creditors. 14. Cost of depreciation fund computed as A) Long term loan capital. B) Dividend. C) Short term loan capital. D) Profit. Show Answer Correct Answer: A) Long term loan capital. 15. According to the concept of conservation, the stock-in-trade is valued at: A) Cost Price. B) Market Price. C) Cost or Market which ever is higher. D) Cost or Market which ever is lower. Show Answer Correct Answer: D) Cost or Market which ever is lower. 16. In what year was the KKLT used to prepare the financial statements issued? A) 2018. B) 2017. C) 2016. D) 2015. Show Answer Correct Answer: A) 2018. 17. As per AS-2, inventory should normally be valued at historical cost or market value whichever is lower. A) True. B) False. Show Answer Correct Answer: A) True. 18. The standards, conventions, and rules that accountants follow to prepare financial reports are known as: A) Generally accepted accounting principles. B) Accounting and audit procedures. C) Management accounting. D) Executive accounting. Show Answer Correct Answer: A) Generally accepted accounting principles. 19. The cost of a building is $ 36000 and the accountants have determined it useful life to be 20 years. What would be the monthly depreciation expense? A) $ 300. B) $ 600. C) $ 150. D) $ 1200. Show Answer Correct Answer: C) $ 150. 20. What is the frequency of report of managerial accounting? A) Once at the end of accounting period. B) As frequently as needed. Show Answer Correct Answer: B) As frequently as needed. ← 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