This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 106 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 106 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The amount of credit sales can be computed from A) Total debtors account. B) Total creditors account. C) Bills receivable account. D) Bills payable account. Show Answer Correct Answer: A) Total debtors account. 2. Following are the branches of Accounting A) Financial Accounting. B) Cost accounting. C) Management Accounting. D) All of Above. Show Answer Correct Answer: D) All of Above. 3. Which of the following items appear on the same side of the trial balance? A) Capital and Sales. B) Purchases and Discounts received. C) Motor expenses and Loan account. D) Accrued income and Accumulated depreciation. Show Answer Correct Answer: A) Capital and Sales. 4. Equity shareholders are A) Creditors. B) Owners. C) Customers. D) None of these. Show Answer Correct Answer: B) Owners. 5. Assets minus liabilities is..... A) Drawings. B) Capital. C) Credit. D) Profit. Show Answer Correct Answer: B) Capital. 6. Given the following data:Net Sales of P156, 000; Sales returns of P15, 000; Cost of Goods available for sale of 120, 000; Purchase returns of P20, 000. How much is the Gross profit if Gross profit is 30% of Cost of goods sold A) P120, 000. B) Give, 000. C) P101, 500. D) Impossible to determine. Show Answer Correct Answer: A) P120, 000. 7. Returns inwards is also known as ..... A) Purchases returns. B) Sales Returns. C) Carriage Inward. D) Carriage Outward. Show Answer Correct Answer: B) Sales Returns. 8. When Allotment is made and money is due, the entry will be ..... A) Debit:Share Capital Credit:Share Allotment Account. B) Debit:Share Allotment Account Credit:Share Capital. C) Debit:Cash Account Credit:Share Allotment Account. D) Debit:Share Allotment Account Credit:Cash Account. Show Answer Correct Answer: B) Debit:Share Allotment Account Credit:Share Capital. 9. When a public limited company raises capital from public, it needs to issue ..... to the public A) Prospectus. B) Letter of Offer. C) Letter of Invitation. D) None of the Above. Show Answer Correct Answer: A) Prospectus. 10. Trading and profit & loss A/c represent the summary of: A) All Personal Accounts. B) All Real Accounts. C) All Nominal Accounts. D) All Personal, Real & Nominal Accounts. Show Answer Correct Answer: C) All Nominal Accounts. 11. Which term represents the monies a company earns by selling its products and services? A) Liabilities. B) Assets. C) Expenses. D) Revenue. E) Equity. Show Answer Correct Answer: D) Revenue. 12. Ignoring work in progress, which one of the following statements correctly defines factory cost of production? A) A. Raw materials purchased plus indirect costs. B) Prime cost plus factory overheads. C) C. Prime cost minus factory overheads. D) D. Prime costs plus direct costs. Show Answer Correct Answer: B) Prime cost plus factory overheads. 13. The monthly or weekly total of the purchases book is posted to the A) Debit of the purchases account. B) Credit of the purchases account. C) Debit of the sales account. D) None of above. Show Answer Correct Answer: B) Credit of the purchases account. 14. Billy Bob just bought a new car. His car costs $ 75, 000. How much money will he pay in taxes for the car if the sales tax is 6%? A) 1000. B) 2000. C) 4000. D) 4500. Show Answer Correct Answer: D) 4500. 15. The relationship between consignor and consignee is that of ..... A) Employer and employee. B) Business partners. C) Owner and servant. D) Principal and agent. Show Answer Correct Answer: D) Principal and agent. 16. All the following are added to balance as per bank statement except A) Standing order. B) Bank charges. C) Uncredited cheque. D) Dividend. Show Answer Correct Answer: D) Dividend. 17. Trial balance contains the balances of ..... A) All real and personal accounts. B) All personal and nominal accounts. C) All nominal and real accounts. D) All accounts. Show Answer Correct Answer: A) All real and personal accounts. 18. All of the following describe accounting, except A) A service activity. B) An information system. C) A universal language of business. D) An exact science rather than an art. Show Answer Correct Answer: D) An exact science rather than an art. 19. A block of time covered by an accounting report. Also known as a fiscal period. A) Accounting period. B) Calendar. C) Calendar period. D) None of the above. Show Answer Correct Answer: A) Accounting period. 20. Limit of Minimum Number of Partners is Fixed by A) Companies Act 1956. B) Partnership Act 1932. C) New Companies Act 2013. D) None of the Above. Show Answer Correct Answer: B) Partnership Act 1932. ← 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