This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 119 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 119 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT part of the fraud triangle? A) Opportunity. B) Nature. C) Rationalization. D) Pressure. Show Answer Correct Answer: B) Nature. 2. NON ADJUSTING EVENTS AFTER REPORTING PERIOD INCLUDE ALL OF THE FOLLOWING, EXCEPT A) ISSUE OF ORDINARY SHARES AFTER THE REPORTING PERIOD. B) MAJOR PURCHASE OF AN ASSET AFTER THE REPORTING PERIOD. C) BANKCRUPTCY OF A CUSTOMER AFTER REPORTING PERIOD. D) PLAN TO DISCONTINUE AN OPERATION AFTER THE REPORTING PERIOD. Show Answer Correct Answer: C) BANKCRUPTCY OF A CUSTOMER AFTER REPORTING PERIOD. 3. Realisation account is opened at the time of dissolution of the partnership firm. A) True. B) False. Show Answer Correct Answer: A) True. 4. Underwritting commission is debited to ..... A) Underwritting commission A/c. B) Underwriter's a/c. C) Share allotment a/c. D) Profit and loss a/c. Show Answer Correct Answer: A) Underwritting commission A/c. 5. Which of the following elements of a manufacturing account matches the definition below:The wages of those workers actually engaged in the manufacturing process (e.g. wages of a sewing machine operator) A) Direct materials. B) Direct wages. C) Indirect wages. D) Profit on manufacture. Show Answer Correct Answer: B) Direct wages. 6. When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue. A) True. B) False. Show Answer Correct Answer: B) False. 7. Debit = Expenses, Assets, DrawingCredit = Owner's Equity, Income/Revenue, Liabilities Acronym for ..... ? A) Accounting. B) DEAD COIL. C) COIL DEAD. D) What?. Show Answer Correct Answer: B) DEAD COIL. 8. What are capital goods or capital in economics? A) Future sacrifices of economic benefits that a business owes to other entities. B) Durable produced goods used as productive inputs. C) Resources owned or controlled by a business. D) The total amount of income generated by the sale of goods and services. Show Answer Correct Answer: B) Durable produced goods used as productive inputs. 9. R.E.I.D is the acronym to help you remember which accounts are closed during the closing process. A) True. B) False. Show Answer Correct Answer: A) True. 10. A journal in which transactions are first recorded is: A) A book of original entry. B) A ledger. C) A book of final entry. D) A revenue account. E) The cash ledger. Show Answer Correct Answer: A) A book of original entry. 11. According to GAAP, what ratio must be reported on the financial statements in the notes to the statements? A) Earnings per share ratio. B) Return on equity ratio. C) Net profit margin ratio. D) Current ratio. Show Answer Correct Answer: A) Earnings per share ratio. 12. What should be referenced in following the correct and widely accepted procedures and standards? A) FHA. B) FOIA. C) GAAP. D) IRS. Show Answer Correct Answer: C) GAAP. 13. On January 2 2017, PT. Jaya Sakti obtained patent rights for its products through research and development and registered its products with the Patent Office. After that PT. Jaya Sakti makes a deed of establishment until the establishment is approved by the authorities. Of the total costs, which is included in the acquisition cost?..... A) Development costs. B) Trial fee. C) Patent tax. D) Legal fees. E) Patent registration. Show Answer Correct Answer: C) Patent tax. 14. Which of this column is not included in trial balance? A) Folio. B) Particulars. C) Debit side. D) Credit side. Show Answer Correct Answer: A) Folio. 15. In reference to the determination of goodwill impairment, which of the following statements is correct? A) The goodwill impairment test under FASB 142 is a three-step process. B) If the reporting unit's fair value exceeds its carrying value, goodwill is unimpaired. C) Under FASB 142, firms must first compare carrying values (book values) at the firm level. D) All of the above are correct. Show Answer Correct Answer: B) If the reporting unit's fair value exceeds its carrying value, goodwill is unimpaired. 16. When accounting for a business combination a contingent liability is recognised if: A) It is a present obligation that has failed to meet the recognition criteria. B) It is a possible obligation and it is probable that it will occur. C) Its fair value can be measured reliably. D) It is probable that an outflow of resources may occur in order to settle the obligation. Show Answer Correct Answer: C) Its fair value can be measured reliably. 17. Prepaid expense is deducted from ..... and it is treated as ..... A) Asset, Liability. B) Income, asset. C) Expenses, asset. D) Expenses, income. Show Answer Correct Answer: C) Expenses, asset. 18. What is the scope of financial accounting? A) Narrow, focusing on specific departments and cost centers. B) Broad, consolidating results of all business units. C) Limited to financial information only. D) No specific scope. Show Answer Correct Answer: B) Broad, consolidating results of all business units. 19. What is the correct formula for straight line method A) Cost-Residual value. B) Cost-Residual value/ Carrying amount. C) Cost-Accumulated depreciation. D) Cost-Residual value/ Useful life of the asset. Show Answer Correct Answer: D) Cost-Residual value/ Useful life of the asset. 20. All of the following are internal users of accounting information except: A) Owners. B) Employees. C) Supplier. D) Manager. Show Answer Correct Answer: C) Supplier. ← 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