This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 108 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 108 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The items, raw materials inventory, work in progress inventory and finished goods inventory are MOST like seen together on the balance sheet of a A) Garage. B) Shoe factory. C) Supermarket. D) Bus company. Show Answer Correct Answer: B) Shoe factory. 2. When Machinery purchased ..... account will be debited A) Personal Account. B) Machinery Account. C) Cash Account. D) Bank Account. Show Answer Correct Answer: B) Machinery Account. 3. Which of the following accounts is nominal A) Interest. B) Outstanding interest. C) Sales account. D) Purchase account. Show Answer Correct Answer: A) Interest. 4. Mr. A withdrew business money for personal use. You can save your account by A) Debit withdrawal for personal use, credit cash. B) Cash debit, credit withdrawal for personal use. C) Debit capital of Mr. A, credit withdrawal for personal use. D) Not recording the program. Show Answer Correct Answer: A) Debit withdrawal for personal use, credit cash. 5. Positive is a hypotheses that are tested against actual events A) True. B) False. Show Answer Correct Answer: A) True. 6. What is mean by Assets? A) Loans. B) Propertys. C) Purchases. D) Sales. Show Answer Correct Answer: B) Propertys. 7. Gross Profit Percent helps a business to measure? A) Sales. B) Profitability before other operating expenses. C) To analyze and assess a company's financial performance. D) A ruler. Show Answer Correct Answer: C) To analyze and assess a company's financial performance. 8. John owes Sally $ 500. John is Sally's ..... A) Business partner. B) Accountant. C) Debtor. D) Creditor. Show Answer Correct Answer: C) Debtor. 9. Return on sales (ROS) is the ratio of net income to total sales. A) True. B) False. Show Answer Correct Answer: A) True. 10. Double entry system keeps record of A) Personal a/c. B) Real a/c. C) Nominal a/c. D) All of thease. Show Answer Correct Answer: D) All of thease. 11. A merger between 2 or more people (entities) to jointly own and run a company in order to gain profit or gain is..... A) Federation. B) Liquidation Guild. C) Joint Venture. D) Consignment. Show Answer Correct Answer: A) Federation. 12. Which of the following users are considered as internal user? A) Owner. B) Bank. C) Middle management. D) Buyer. Show Answer Correct Answer: C) Middle management. 13. Bernard plans to start a business. The cost to start the business is $ 5 000. He has $ 2 600 to invest, how much money does he need to borrow to start the business? A) $ 7 600. B) $ 2 400. C) $ 2 500. D) $ 2 600. Show Answer Correct Answer: B) $ 2 400. 14. The formula for the straight line method is..... A) Depreciation= Cost-Residual Value/Economic Life. B) Depreciation = Residual Value-Acquisition Price/Economic Life. C) Economic Life = Residual Value-Acquisition Price/Depreciation. D) Residual Value= Economic Life-Acquisition Price/Depreciation. E) Acquisition Price:Residual Value-Depreciation/Economic Life. Show Answer Correct Answer: A) Depreciation= Cost-Residual Value/Economic Life. 15. In the absence of partnership deed, interest on loan of a partner is allowed: A) @8% per annum. B) @6% per annum. C) No interest is allowed. D) @12% per annum. Show Answer Correct Answer: B) @6% per annum. 16. The primary book used to record the acquisition of fixed assets on credit is A) Purchases journal. B) Returns outward book. C) Journal proper. D) Cash book. Show Answer Correct Answer: C) Journal proper. 17. The basic principles of accounting are ..... A) Historical cost and fair value. B) Economic entity, going concern, and accrual. C) Measurement, revenue recognition, expense recognition and full disclosure. D) Assets, liabilities, equity, income and expenses. Show Answer Correct Answer: C) Measurement, revenue recognition, expense recognition and full disclosure. 18. The primary objective of GAAP is to provide accounting information that is: A) Usefulness for decision making. B) Freedom from bias. C) Timeliness. D) Comparability. E) Neutral. Show Answer Correct Answer: A) Usefulness for decision making. 19. In the absence of a partnership deed the partners are entitles to interest on capital at the rate of A) 6%. B) 9%. C) 12%. D) Nil. Show Answer Correct Answer: D) Nil. 20. Equity =? A) Asset-Liability. B) Liability-Asset. C) Income-Expense. D) Expense + Income. Show Answer Correct Answer: A) Asset-Liability. ← 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