This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 117 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 117 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A collection of accounts that shows the changes made to each account as a result of past transactions, and their current balances. A) Posting. B) T-Accounts. C) Ledger. D) Journalizing. Show Answer Correct Answer: C) Ledger. 2. The following is not part of the scope of Plant Assets:..... A) Building. B) Machine. C) Land. D) Vehicle. Show Answer Correct Answer: D) Vehicle. 3. International Financial Reporting Standards (IFRS) developed by: A) FASB. B) AICPA. C) IASB. D) SEC. Show Answer Correct Answer: C) IASB. 4. Which of the following refers to a partnership business? A) Limited liability. B) Capital contributed by way of ordinary share. C) Income from the business is not subject to tax. D) Profit or loss is divided among owners and members. Show Answer Correct Answer: D) Profit or loss is divided among owners and members. 5. Production for addition (addition) aims to ..... A) Replacing some or all of the fixed asset components so that they function properly. B) Returning fixed assets to their original condition. C) Increasing capacity or extending the life of fixed assets. D) Maintaining fixed assets functioning normally in good condition. Show Answer Correct Answer: C) Increasing capacity or extending the life of fixed assets. 6. Who is the "Father of Accounting" ? A) Michael Angelo. B) Leonardo DaVinci. C) Christopher Columbus. D) Luca Pacioli. Show Answer Correct Answer: D) Luca Pacioli. 7. Total net profit+Total Expenses-Other income= A) Cost of sales. B) Gross profit/(loss). C) Net sales. D) Purchase. Show Answer Correct Answer: B) Gross profit/(loss). 8. What are the two main financial statements drawn up by accountants? A) The statement of profit or loss and the statement of debt position. B) The statement of profit or loss and the statement of financial position. C) The statement of profit and the statement of financial position. D) None of above. Show Answer Correct Answer: B) The statement of profit or loss and the statement of financial position. 9. In the case of cheques issued but not encashed, the balance of the passbook will be more than the balance of the bank account in books of accounts A) True. B) False. Show Answer Correct Answer: A) True. 10. When an underwriter agrees to buy a definite number of shares in addition to unsubscribed shares, it is termed as A) Firm underwriting. B) Partial underwriting. C) Complete underwriting. D) Direct underwriting. Show Answer Correct Answer: A) Firm underwriting. 11. A machine was purchased on 1 January 2013 for $ 12 000. It has a working life of 8 years when itwill be sold for $ 2000. Depreciation is calculated using the straight line method.What was the written down value at 31 December 2013? A) $ 10 000. B) $ 10 500. C) $ 10 750. D) $ 12 000. Show Answer Correct Answer: C) $ 10 750. 12. There are several ways to acquire fixed assets, which method below is the most profitable for the company? A) Cash or credit purchases. B) Purchase with long-term credit. C) Fixed assets obtained from grants. D) Self-built fixed assets. Show Answer Correct Answer: C) Fixed assets obtained from grants. 13. If the creditors are willing to reduce their claims against the company, then the amount of reduction in their claim will be transferred to A) Share Capital A/C. B) Capital Reduction A/C. C) Creditors A/C. D) None of above. Show Answer Correct Answer: B) Capital Reduction A/C. 14. Which act was signed into law in 2010 to protect American taxpayers from "Too Big To Fail" bailouts and to protect consumers from abusive financial service practice? A) Sarbanes-Oxley Act. B) Dodd-Frank Wall Street Reform Act. C) Model Audit Act. D) Government Accountability Act. Show Answer Correct Answer: B) Dodd-Frank Wall Street Reform Act. 15. Del credere commission is allowed to cover: A) Bad debt loss. B) Normal loss. C) Abnormal loss. D) Both normal and abnormal loss. Show Answer Correct Answer: A) Bad debt loss. 16. What are standing orders in a bank reconciliation statement? A) Money given to a business from the profit made by a public limited liability company. B) Mistakes made by both the bank and the business. C) Deductions the bank will remove from the business bank account for the services rendered. D) Instruction given by the business to pay a certain amount of money to a named person at a regular interval. Show Answer Correct Answer: D) Instruction given by the business to pay a certain amount of money to a named person at a regular interval. 17. There are purchases of fixed assets in the form of land and buildings in cash. The market prices for land and buildings are IDR 250, 000.00 and IDR 500, 000.00 respectively. The journal to record these transactions is ..... A) Land (D) Rp. 250, 000, 000.00; Building(D) Rp. 500, 000, 000.00; Fixed assets (K) Rp. 750, 000, 000.00. B) Land (D) Rp. 250, 000, 000.00; Building (D) Rp. 500, 000, 000.00; Cash (K) Rp. 750, 000, 000.00. C) Office building (D) Rp. 750, 000, 000.00; Prize capital (K) IDR 750, 000, 000.00. D) Building (D) Rp. 750, 000, 000.00; Prize capital (K) Rp. 750, 000, 000.00. E) Amortization expense (D) Rp. 750, 000, 000.00; Patent rights (K) Rp. 750, 000, 000.00. Show Answer Correct Answer: B) Land (D) Rp. 250, 000, 000.00; Building (D) Rp. 500, 000, 000.00; Cash (K) Rp. 750, 000, 000.00. 18. The discount which is allowed when payment is received within a specified period is A) Cash Discount. B) Trade Discount. C) Sale Discount. D) None. Show Answer Correct Answer: A) Cash Discount. 19. Plant and machinery is ..... a/c A) Real a/c. B) Expenses a/c. C) Nominal a/c. D) Asset a/c. Show Answer Correct Answer: A) Real a/c. 20. A "new company" formed to take over the assets of another company is called..... A) Merger. B) Consignment. C) Acquisitions. D) Consolidation. Show Answer Correct Answer: D) Consolidation. ← 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