This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 107 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 107 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The expired rent is 1/4 of the existing amount, in the Balance Sheet there is a Prepaid Rent account amounting to IDR 24, 000, 000 A) Rent Expense (D) IDR 12, 000, 000 DBM Rent (K) IDR 12, 000, 000. B) DBM Rent (K) Rp. 12, 000, 000 Rent Expense (K) Rp. 12, 000, 000. C) Rent Expense (D) Rp6, 000, 000 DBM Rent (K) Rp6, 000, 000. D) DBM Rent (D) Rp6, 000, 000 Rent Expense (K) Rp6, 000, 000. Show Answer Correct Answer: C) Rent Expense (D) Rp6, 000, 000 DBM Rent (K) Rp6, 000, 000. 2. Any loan given by a partner to the business where there is no partnership agreement attracts an annual interest of A) 6%. B) 5%. C) 3%. D) 4%. Show Answer Correct Answer: B) 5%. 3. The adjusting entries are made: A) At the end of every month. B) At the end of every quarter. C) At the end of every accounting period. D) After six months. Show Answer Correct Answer: C) At the end of every accounting period. 4. What is "goods" in English? A) Goods in transit. B) Outward goods on consignment. C) Merchandise inventories. D) None of above. Show Answer Correct Answer: C) Merchandise inventories. 5. Depreciation is defined as:allocation of ..... of non-current asset over its ..... A) Selling price remaining life. B) Costuseful life. C) Costremaining life. D) Selling priceuseful life. Show Answer Correct Answer: B) Costuseful life. 6. The financial statements of a limited liability company will consist solely of the statement of financial position and statement of profit or loss. Is this statement true or false? A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 7. The hire purchase Act came into force from the year 1972 A) True. B) False. Show Answer Correct Answer: B) False. 8. Find the term to match the meaning below:Total value of inventory purchased from suppliers by the business for resale A) Purchases. B) Closing Inventory. C) Other Income. D) Expenses. Show Answer Correct Answer: A) Purchases. 9. Objective of Financial Accounting A) Ascertain Profit or Loss. B) Ascertain Financial Position. C) Both the above. D) None of the above. Show Answer Correct Answer: C) Both the above. 10. There are several of the Characteristics of ideal theory, except A) Having the quality of authenticity and also authoritative. B) The ability analysing and forecast future events. C) Must be wide acceptance. D) Verifiable through testing of hypothesis. Show Answer Correct Answer: B) The ability analysing and forecast future events. 11. The amount of revenue that remains after expenses for the accounting period subtracted from the gross profit on sales. A) Expense. B) Revenue. C) Cost of merchandise sold. D) Net income. Show Answer Correct Answer: D) Net income. 12. A Company in which the maximum number of members is restricted is called ..... A) Private Company. B) Public Company. C) Government Company. D) Unlimited Company. Show Answer Correct Answer: A) Private Company. 13. The amount borrowed; this is the non-interest portion paid back when making loan payments A) Loan Payable. B) Note Payable. C) Principal. D) Interest. Show Answer Correct Answer: C) Principal. 14. Which of the following is not a source document? A) Money. B) Invoice. C) Receipt. D) Credit note. Show Answer Correct Answer: A) Money. 15. Describe the key characteristics of financial accounting. A) Subjectivity, inconsistency, irrelevance, unreliability. B) Accuracy, precision, timeliness, honesty. C) Flexibility, uniqueness, individuality, creativity. D) Objectivity, reliability, relevance, comparability, and consistency. Show Answer Correct Answer: D) Objectivity, reliability, relevance, comparability, and consistency. 16. The professional organization that CPAs may join. The AICPA creates and administers the CPA exam and nurtures CPA professional practice A) American Institute of Certified Public Accountants. B) Financial Accounting Standards Board. C) Federal Accountants Association. D) Internal Revenue Service. Show Answer Correct Answer: A) American Institute of Certified Public Accountants. 17. When the issue price is higher than the face value, the issue is termed as ..... A) Issued at Discount. B) Issued at Premium. C) Issued at Par. D) None of the Above. Show Answer Correct Answer: B) Issued at Premium. 18. Single entry system of book keeping is A) (a) Simple. B) (b) Unauthorized by tax authorities. C) C) Unscientific. D) (d) all of these. Show Answer Correct Answer: D) (d) all of these. 19. As per AS-7 expenses recognized in the period in which the work to which expenses relate is performed. A) True. B) False. Show Answer Correct Answer: A) True. 20. Internal control procedures A) Eliminate the risk of loss. B) Eliminate the risk of loss and include policies and procedures to safeguard assets. C) Include policies and procedures to safeguard assets. D) Prevent unavoidable losses. E) All of the above. Show Answer Correct Answer: C) Include policies and procedures to safeguard assets. ← 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