This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 115 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 115 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not an Internal User of Financial Accounting A) Investors. B) Employees. C) Managers. D) None of above. Show Answer Correct Answer: A) Investors. 2. The journal entry for when prepaid insurance expires: A) Debit Insurance ExpenseCredit Prepaid Insurance. B) Debit Prepaid InsuranceCredit Insurance Expense. C) Debit CashCredit Prepaid Insurance. D) Debit Prepaid InsuranceCredit Cash. Show Answer Correct Answer: A) Debit Insurance ExpenseCredit Prepaid Insurance. 3. The impact of technology on internal controls includes: A) Elimination of the need for regular audits. B) Elimination of fraud. C) Elimination of separation of duties. D) Reduced processing errors. Show Answer Correct Answer: D) Reduced processing errors. 4. Each of the following items affect the cash balance per books except A) Bank service charges. B) Outstanding checks. C) NSF checks. D) Notes collected by the bank. Show Answer Correct Answer: B) Outstanding checks. 5. Below are the reasons why companies merge, EXCEPT..... A) Cost Efficiency. B) Time efficiency. C) Getting Loss. D) Acquire Rights over Assets. Show Answer Correct Answer: C) Getting Loss. 6. The total compensation expense in a share option plan is measured at A) Fair value of share options on date of grant. B) Fair value of share options on date of exercise. C) Intrinsic value of share options on date of grant. D) Intrinsic value of share options on the date of exercise. Show Answer Correct Answer: A) Fair value of share options on date of grant. 7. Which of the following is a key process in financial accounting? A) Sales order processing. B) Accounts receivable accounting. C) Credit management. D) Income verification. E) All of the above. Show Answer Correct Answer: B) Accounts receivable accounting. 8. Identify the type of expenditure. Legal costs of collecting debts A) Capital. B) Revenue. Show Answer Correct Answer: B) Revenue. 9. A present obligation of an entity to transfer an economic resource as a result of past events is ..... A) Asset. B) Liability. C) Income. D) Equity. Show Answer Correct Answer: B) Liability. 10. The folio column is used for ..... A) Date. B) Type of transaction. C) Value. D) Referencing. Show Answer Correct Answer: D) Referencing. 11. Out of following items, which one is shown in the Receipts and Payments Account? A) Outstanding Salary. B) Depreciation. C) Life Membership Fees. D) Accrued Subscription. Show Answer Correct Answer: C) Life Membership Fees. 12. Which of these is not included as a separate item in the basic accounting equation? A) Assets. B) Revenues. C) Liabilities. D) Owner's Equity. Show Answer Correct Answer: B) Revenues. 13. Translate this account into Vietnamese: "Output value added tax" A) Value added tax deducted. B) Corporate income tax. C) Output VAT. D) None of above. Show Answer Correct Answer: C) Output VAT. 14. Companies experiencing seasonal variations in sales often choose a fiscal year corresponding to their ..... A) Natural business year. B) Interim year end. C) Quarterly year end. D) None of the above. Show Answer Correct Answer: A) Natural business year. 15. A company receives $ 500 of cash as an additional investment in the company by its owner, Mary Smith. The company's Cash account is increased and Mary Smith, Capital is increased.Should the $ 500 entry to Mary Smith, Capital be a debit? A) Yes. B) No. Show Answer Correct Answer: B) No. 16. Income received in advance must be treated as a liability A) True. B) False. Show Answer Correct Answer: A) True. 17. Yahoo, Inc. recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue. A) Revenue Recognition. B) Matching. C) Full Disclosure. D) Historical Cost. Show Answer Correct Answer: B) Matching. 18. When assets are acquired under Hire-purchase system, depreciation need not be provided as the vendor still continues to be the legal owner of such assets A) True. B) False. Show Answer Correct Answer: B) False. 19. A withdrawal of cash from business by the proprietor is credited to A) Drawings A/c. B) Capital A/c. C) Cash A/c. D) None of these. Show Answer Correct Answer: C) Cash A/c. 20. Tax charges will be paid on..... of the following month. And social charges must be paid on..... of the following month of the quarter. A) 1628. B) 3028. C) 2815. D) 2915. Show Answer Correct Answer: C) 2815. ← 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