This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 121 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 121 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Journal Entry for when supplies are used up: A) Debit SuppliesCredit Supplies Expense. B) Debit CashCredit Supplies. C) Debit Supplies ExpenseCredit Supplies. D) Debit SuppliesCredit Cash. Show Answer Correct Answer: C) Debit Supplies ExpenseCredit Supplies. 2. What are the principal statements of Financial Accounting? A) Profit & loss statement. B) Balance sheet. C) Profit & loss and balance sheet. D) Fund flow statement. Show Answer Correct Answer: C) Profit & loss and balance sheet. 3. On Jul 1, 2019, Catt acquires 100% of Tom for $ 150, 000. On this date, Tom had assets of $ 100, 000. Assume the book value and fair value of Tom's net assets were equal at the acquisition date. What is the elimination journal when Parent making the consolidation? A) Dr. Cash in Bank $ 150, 000Cr. Investment in Tom $ 150, 000. B) Dr. Investment in Tom $ 100, 000Cr. Cash in Bank $ 100, 000. C) Dr. Capital Stock $ 150, 000Cr. Investment in Tom $ 150, 000. D) Dr. Investment in Tom $ 100, 000Cr. Capital Stock $ 100, 000. E) Dr. Capital Stock $ 100, 000Cr. Investment in Tom $ 100, 000. Show Answer Correct Answer: C) Dr. Capital Stock $ 150, 000Cr. Investment in Tom $ 150, 000. 4. Which of the following statements is not correct? A) Profits increase capital. B) Losses reduce capital. C) Drawings reduce capital. D) Drawings increase capital. Show Answer Correct Answer: D) Drawings increase capital. 5. Occurs when one company takes over all of the operations of another business entity and that other entity is dissolved. (A+B=A) is called ..... A) Merger. B) Consignment. C) Consolidation. D) Stock Acquisition. Show Answer Correct Answer: A) Merger. 6. An unrealized loss on available-for-sale securities is: A) Reported under Other Expenses and Losses in theincome statement. B) Closed-out at the end of the accounting period. C) Reported as a separate component of stockholders'equity. D) Deducted from the cost of the investment. Show Answer Correct Answer: C) Reported as a separate component of stockholders'equity. 7. Below are the forms of business entity merger based on the type of business being joined, EXCEPT..... A) Horizontal Merger. B) Vertical Merger. C) Conglomerate Merger. D) Business Merger. Show Answer Correct Answer: D) Business Merger. 8. Which of the following is THE BEST statement to indicate the role of accountant in society: A) A. Society could freely ask accountant to protect their interest even though such situation will result in non-compliance with the statutory requirements of financial reporting. B) A. Accountant has priority to maximize the company profit rather than upholding the professional ethical standard. C) A. Accountants need to uphold professional ethical standard in providing the financial information so as the public interest will be protected. D) None of the above. Show Answer Correct Answer: C) A. Accountants need to uphold professional ethical standard in providing the financial information so as the public interest will be protected. 9. WHICH OF THE FOLLOWING SHOULD BE CLASSIFIED AS CURRENT ASSET? A) INVESTMENT PROPERTY. B) PROPERTY PLANT AND EQUIPMENT. C) FINANCIAL ASSET HELD FOR TRADING. D) CASH SURRENDER VALUE. Show Answer Correct Answer: C) FINANCIAL ASSET HELD FOR TRADING. 10. If the proceeds from the sale of fixed assets are valued at IDR 190, 000, 000 and the book value of the assets is 175, 000, 000 then the company experiences..... A) Two 25.000.000. B) Two 15.000.000. C) Loss 15, 000, 000. D) Loss 25, 000, 000. E) Two 2.500.000. Show Answer Correct Answer: B) Two 15.000.000. 11. If the gross profit is 25% of the cost of sales and the sales are Rs 2, 50, 000 then calculate the gross profit- A) Rs. 62, 500-. B) Rs. 5, 000-. C) Rs. 50, 000-. D) Rs. 10, 000-. Show Answer Correct Answer: C) Rs. 50, 000-. 12. All of the following are Source Documents EXCEPT A) Petty Cashbook Voucher. B) Cheque. C) Credit Note. D) Returns Journal. Show Answer Correct Answer: D) Returns Journal. 13. Paired accounting recording system A) Single Entry. B) Double Entry. C) Triple Entry. D) Journal Entry. Show Answer Correct Answer: B) Double Entry. 14. Professionals/ Businessmen need accounting because ..... A) Projects are complicated and accounting helps them to keep track. B) Projects will become directionless if there is no accounting. C) Projects consume resources and accounting helps them to keep track. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. What is the role of Bank Negara 'Central Bank'? A) Issue accounting standards. B) Promote monetory and financial stability. C) Facilitate development of an innovative capital market. D) None of above. Show Answer Correct Answer: B) Promote monetory and financial stability. 16. Accounting information is only relevant for people in business. A) True. B) False. Show Answer Correct Answer: B) False. 17. A business organized under the laws of the company as a separate legal entity. A) Partnership. B) Company. C) Enterprise. D) Sole Trader. Show Answer Correct Answer: B) Company. 18. Which is an asset? A) Assets. B) Liability. C) Owner's equity. D) Non-Current Liabilities. Show Answer Correct Answer: A) Assets. 19. On September 1, 2011, Entity A entered into an agreement to rent office space for a year and paid $ 36, 000 for a six-month rent. Prepare journal entries on the following dates:September 1, 2011 A) Prepaid Rent (D) 3.600Cash (K)3 3.600. B) Rent Expenses (D) 36.000Cash (K) 36.000. C) Rent Expenses (D) 3.600Cash (K) 3.600. D) Prepaid Rent (D) 36.000Cash (K) 36.000. Show Answer Correct Answer: D) Prepaid Rent (D) 36.000Cash (K) 36.000. 20. The effect of opening entry is the opening of A) Personal Accounts & Real Accounts. B) Personal Accounts and Nominal Accounts. C) Nominal Accounts & Real Accounts. D) Personal, Real & Nominal Accounts. Show Answer Correct Answer: A) Personal Accounts & Real Accounts. ← 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