This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 111 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 111 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All cash transactions be it of revenue or capital nature are to be recorded in Receipt and Payment Account A) False. B) True. Show Answer Correct Answer: B) True. 2. For the year ending 31-3-2014 loan taken on 1-7-2013, interest will be calculated for A) 9 Months. B) 12 Months. C) 6 Months. D) None. Show Answer Correct Answer: A) 9 Months. 3. Debits will increase asset balances A) True. B) False. Show Answer Correct Answer: A) True. 4. You intended to buy a new clothes next week for $ 30? Is this amount is A) An expense for you now?. B) It considered a decrease in your income now". C) Considered a revenue for the store you intended to buy from. D) Not considered an an accounting transaction. Show Answer Correct Answer: D) Not considered an an accounting transaction. 5. Collection of a $ 1, 500 Accounts Receivable A) Decreases an asset $ 1, 500; decreases a liability $ 1, 500. B) Decreases a liability $ 1, 500; increases owner's equity $ 1, 500. C) Increases an asset $ 1, 500; decreases a liability $ 1, 500. D) Increases an asset $ 1, 500; decreases an asset $ 1, 500. Show Answer Correct Answer: D) Increases an asset $ 1, 500; decreases an asset $ 1, 500. 6. Hello! My name is AB and I want to join with you to do a specific business deal and when the deal is over the business will end. What type of business venture I am talking about? A) Partnership. B) Sole Proprietorship. C) Joint Venture. D) Company. Show Answer Correct Answer: C) Joint Venture. 7. Step 4 in the Accounting Cycle A) Trial Balance. B) Source Documents. C) Closing Entries. D) None of the Above. Show Answer Correct Answer: A) Trial Balance. 8. Trial balance is used to prepare ..... A) Control account. B) Bank statement. C) Cash book. D) Trading, profit and loss account. Show Answer Correct Answer: D) Trading, profit and loss account. 9. Which statement contains both income and expenses? A) Statement of financial position. B) Statement of profit or loss. C) Statement of cash flow. D) Statement of changes in equity. Show Answer Correct Answer: B) Statement of profit or loss. 10. Debt investments are initially recorded at: A) Cost. B) Cost plus accrued interest. C) Fair value. D) Face value. Show Answer Correct Answer: A) Cost. 11. Prepaid insurance A/c is ..... A/c A) Real. B) Personal. C) Nominal. D) None. Show Answer Correct Answer: B) Personal. 12. Information for each transaction recorded in a journal is called ..... A) Accounting. B) Entry. C) Journal. D) Journalizing. Show Answer Correct Answer: B) Entry. 13. How is the balance on the provision for depreciation of motors account shown in the finalaccounts? A) It is added to the current liabilities in the Balance Sheet. B) It is deducted from the fixed assets in the Balance Sheet. C) It is credited in the Profit and Loss Account. D) It is debited in the Profit and Loss Account. Show Answer Correct Answer: B) It is deducted from the fixed assets in the Balance Sheet. 14. Income statement covers a period of time A) Daily. B) Weekly. C) Year/Quarter/Month Ended. D) None of the above. Show Answer Correct Answer: C) Year/Quarter/Month Ended. 15. Which of the following is an example of a non-monetary incentive? A) High markings on a performance review. B) Bonus. C) Increased pay. D) Commission. Show Answer Correct Answer: A) High markings on a performance review. 16. Establishment expenses of a new machine will be debited in ..... account A) Expenses. B) Machine. C) Profit & Loss. D) None of the above. Show Answer Correct Answer: B) Machine. 17. The development of accounting standards in Malaysia only began in the late 1960s, where most of the accounting standards involved the adoption of the International Accounting Standards (IAS). A) True. B) False. Show Answer Correct Answer: B) False. 18. In the documentary, All the Queens Horses, Rita's actions are considered ethical because she was maximizing her personal wealth. A) True. B) False. Show Answer Correct Answer: B) False. 19. On September 1, 2018, V Co. bought merchandise inventory worth P14, 600 from R Co., terms of 2/10, n/20. On September 6, 2018, the firm received a credit memorandum of P2, 400 for defective merchandise returned. On September 8, the company made a partial payment of P3, 800. How much will V Co. pay to settle its account on September 11, 2018? A) P8, 180. B) P8, 400. C) P8, 156. D) P8, 232. Show Answer Correct Answer: D) P8, 232. 20. Only what is measurable in terms of money will recorded in accounting is explained by ..... concept A) Money Measurement. B) Accounting Cost. C) Objectivity. D) Dual Aspect. Show Answer Correct Answer: A) Money Measurement. ← 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