This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 118 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 118 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How is net profit after tax calculated? A) Profit before interest expense / interest expense = net profit for the year. B) Profit before interest expense x interest expense = net profit for the year. C) Profit before interest expense + interest expense = net profit for the year. D) Profit before interest expense-interest expense = net profit for the year. Show Answer Correct Answer: D) Profit before interest expense-interest expense = net profit for the year. 2. If you bought some fruits for $ 20 from fruit store. is the $ 20 is A) Expense for you?. B) Is revenue for you?. C) Expense for the store?. D) None of the above. Show Answer Correct Answer: A) Expense for you?. 3. When a company sells services for which cash will not be received until some future date, the company should credit an unearned revenues account for the amount charged to the customer. A) True. B) False. Show Answer Correct Answer: B) False. 4. Dependent branch make..... A) Only cash sales. B) Only credit sales. C) Cash and credit sales. D) Installment sales. Show Answer Correct Answer: C) Cash and credit sales. 5. The nature of financial accounting is A) Historical. B) Analytical. C) Social. D) Forward looking. Show Answer Correct Answer: A) Historical. 6. The Sun Sdn Bhd has five plants nationwide that cost RM100 million. The current market value of the plants is RM500 million. The plants will be recorded and reported as assets at A) RM600 million. B) RM400 million. C) RM500 million. D) RM100 million. Show Answer Correct Answer: D) RM100 million. 7. How many Companies are listed on NSE? A) More than 1000. B) More than 1600. C) Less than 1600. D) Less than 1000. Show Answer Correct Answer: B) More than 1600. 8. Assets created by selling products or services on credit are: A) Accounts payable. B) Accounts receivable. C) Liabilities. D) Expenses. E) Equity. Show Answer Correct Answer: B) Accounts receivable. 9. Which of these non-current assets should not be depreciated. A) Furniture. B) Land. C) Vehicle. D) Building. Show Answer Correct Answer: B) Land. 10. What is the depreciation expense for loose tools? A) £910. B) £1, 000. C) £1, 100. D) £800. Show Answer Correct Answer: A) £910. 11. Opening stock is..... A) Credited in trading account. B) Debited in trading account. C) Debited in profit and loss account. D) Credited in profit and loss account. Show Answer Correct Answer: B) Debited in trading account. 12. Gross sales total $ 300, 000, one-half of which were credit sales. Sales returns and allowances of $ 15, 000 apply to the credit sales, sales discounts of 2 percent were taken on all of the net credit sales, and credit card sales of $ 100, 000 were subject to a credit card discount of 3 percent. What is the dollar amount of net sales? A) $ 227, 000. B) $ 229, 800. C) $ 279, 300. D) $ 240, 000. Show Answer Correct Answer: C) $ 279, 300. 13. The consolidation process consists of all the following except: A) Combining the financial statements of two or more legally separate companies. B) Eliminating intercompany transactions and holdings. C) Closing the individual subsidiary's revenue and expense accounts into the parent's retained earnings. D) Combining the accounts of separate companies, creating a single set of financial statements . Show Answer Correct Answer: C) Closing the individual subsidiary's revenue and expense accounts into the parent's retained earnings. 14. Alicia Keyes Company began the year with owner's equity of $ 280, 000. During the year, the company recorded revenues of $ 375, 000, expenses of $ 265, 000, and had owner drawings of $ 30, 000. What was Alicia Keyes' owner's equity at the end of the year? A) $ 420, 000. B) $ 390, 000. C) $ 360, 000. D) $ 280, 000. Show Answer Correct Answer: C) $ 360, 000. 15. True or False:A company experiencing a Net Income (more revenue than expenses) will also experience an increase to Owner's Equity. A) True. B) False. Show Answer Correct Answer: A) True. 16. Insurance that has not expired is 5 times that has expired, insurance that has expired is Rp500.000. In Trial Balance there is an Insurance Expense account Rp6.000.000 A) Prepaid Insurance (D) Rp2.500.000 Insurance Expense (K) Rp2.500.000. B) Insurance Expense (D) Rp500.000 Prepaid Insurance (K) Rp500.000. C) Prepaid Insurance (D) Rp3.500.000 Insurance Expense (K) Rp3.500.000. D) Insurance Expense (D) Rp2.500.000 Prepaid Insurance (K) Rp2.500.000. Show Answer Correct Answer: A) Prepaid Insurance (D) Rp2.500.000 Insurance Expense (K) Rp2.500.000. 17. The agency responsible for setting international financial reporting standards. A) Financial Accounting Standard Board (FASB). B) International Accounting Standard Board (IASB). C) Federation of Accounting Profession. D) American Accounting Association. Show Answer Correct Answer: B) International Accounting Standard Board (IASB). 18. A business has net sales of $ 100 000, cost of sales of $ 60, 000 and other operating expenses of $ 40 000. What is the gross profit of the business? A) 20 000. B) 40 000. C) 60 000. D) 0. Show Answer Correct Answer: B) 40 000. 19. According to traditional classification of accounts, the type of consignment account is: A) Nominal. B) Real. C) Personal. D) Valuation. Show Answer Correct Answer: A) Nominal. 20. Double entry of cash sales A) Dr. CashCr. Sales. B) Dr. SalesCr. Cash. C) Dr. BankCr. Sales. D) Dr. SalesCr. Bank. Show Answer Correct Answer: A) Dr. CashCr. Sales. ← 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