This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 126 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 126 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The statement that outlines the income for the period and the expenses incurred in the period. A) Statement of Cash Flows. B) Statement of Profit and Loss. C) Statement of Financial Position. D) Balance Sheet. Show Answer Correct Answer: B) Statement of Profit and Loss. 2. The influence of environmental factors such as social, political, economic, ..... in the development of accounting and Malaysia's recent move towards the adoption of International Financial Reporting Standards (IFRS). A) Religion and race. B) Macro and micro. C) Size of company and audit firm. D) Legal and cultural. Show Answer Correct Answer: D) Legal and cultural. 3. Recorded expenses include: A) Product costs and selling costs. B) Product costs and period costs. C) Product costs, selling costs and period costs. D) Period costs and selling costs. Show Answer Correct Answer: B) Product costs and period costs. 4. Which one of the following is not an external user of accounting information? A) Investor. B) Customer. C) Manager. D) Creditor. Show Answer Correct Answer: C) Manager. 5. An accrued expense is an expense that A) Has been incurred but has not been paid. B) Has been paid but has not been incurred. C) Has been incurred for which payment has been made in installments. D) Will never be paid. Show Answer Correct Answer: A) Has been incurred but has not been paid. 6. When a Liability is reduced or decreased, it is recorded on the: A) Left or credit side of the account. B) Right or debit side of the account. C) Right or credit side of the account. D) Left or debit side of the account. Show Answer Correct Answer: D) Left or debit side of the account. 7. Purchased furniture from M/s. Mohanlal & Sons., in the journal entry for this transaction M/s Mohanlal & Sons A/c will be A) Debited. B) Credited. C) Neither Debited nor credited. D) None of the above. Show Answer Correct Answer: B) Credited. 8. Financial reports that describe cash inflows and outflows during a certain period are the definition of A) Financial statements. B) Cash flow statement. C) Cash Flow Report. D) Cash Report. Show Answer Correct Answer: B) Cash flow statement. 9. Rely on the study of the behaviour of accountants and non-accountants as they are influenced by accounting functions and reports. A) Pragmatic. B) Normative. C) Behavioural. D) Taxation. Show Answer Correct Answer: C) Behavioural. 10. Company Newbie does not have a system in place to verify returns from customers and vendors. As the expert account, which of the following do you suggest management implements to maintain accurate inventory levels? A) Instruct employees to verbally tell a manager each time there is a return. B) Have customers complete a form with name, address, reason for return, and signature. C) Have a manager take a picture of each item that is returned. D) Have employees record the return on paper after the customer leaves the store. Show Answer Correct Answer: B) Have customers complete a form with name, address, reason for return, and signature. 11. Mrs. Thongdee took 12, 000 baht in cash, 20, 000 baht in bank deposits, 5, 000 baht in furniture, 4, 000 baht in trade creditors, and 8, 000 baht in loans for investment. I would like to know how much total debt there is. A) 41, 000 baht. B) 12, 000 baht. C) 8, 000 baht. D) 32, 000 baht. Show Answer Correct Answer: B) 12, 000 baht. 12. Select the incorrect option regarding the letter of credit: A) Payable only when there is profit. B) Same as loan to company. C) Fixed interest rate. D) Its holder has no right to vote. Show Answer Correct Answer: A) Payable only when there is profit. 13. Which of the following is a correct journal entry to record the loss incurred by a consignment A) Profit and loss on consignment Dr. & Consignment Cr. B) Consignment Dr. & Profit and loss on consignment Cr. C) Profit and loss on consignment Dr. & Consignee Cr. D) Consignee Dr. & Profit and loss on consignment Cr. Show Answer Correct Answer: A) Profit and loss on consignment Dr. & Consignment Cr. 14. What is the correct order to prepare financial statements in? A) Make end of period adjustments $\rightarrow$ income statement $\rightarrow$ statement of owners equity $\rightarrow$ Balance sheet. B) Balance sheet $\rightarrow$ make end of period adjustments $\rightarrow$ income statement $\rightarrow$ statement of owner's equity. C) Income statement $\rightarrow$ owners equity $\rightarrow$ balance sheet $\rightarrow$ make period adjustments. D) Make adjusting entries$\rightarrow$ balance sheet $\rightarrow$ statement of owners equity $\rightarrow$ net income. Show Answer Correct Answer: A) Make end of period adjustments $\rightarrow$ income statement $\rightarrow$ statement of owners equity $\rightarrow$ Balance sheet. 15. In straight line method of providing depreciation, depreciation amount A) Remains constant. B) Increases every year. C) Decreases every year. D) None of the options. Show Answer Correct Answer: A) Remains constant. 16. The lessee can recover the shortworkings within A) First 5 years. B) First 4 years. C) Last 3 years. D) Any number of years as per agreement. Show Answer Correct Answer: D) Any number of years as per agreement. 17. Who s the father of Accounting? A) Lucco Paciole. B) Peter Drucker. C) F.W.Taylor. D) None of the above. Show Answer Correct Answer: A) Lucco Paciole. 18. What would be the effect on an entity's profit for the year of discovering that inventory with cost of $ 1, 250 and a net realisable value of $ 1, 000 had been omitted from the original inventory valuation? A) An increase of $ 1, 250. B) An increase of $ 1, 000. C) A decrease of $ 250. D) No effect at all. Show Answer Correct Answer: B) An increase of $ 1, 000. 19. The registration of IDR 15, 500 shares was carried out on November 15 2019. From the company's activities, the journal made at the time of the announcement was..... A) Dividends IDR 15, 500-Cash-IDR 15, 500. B) Dividends Payable Rp. 15, 500-Cash-Rp. 15, 500. C) Cash IDR 15, 500-Dividends Payable-IDR 15, 500. D) Dividend IDR 15, 500-Dividend Payable-IDR 15, 500. E) No journaling. Show Answer Correct Answer: E) No journaling. 20. Which accounting reports mainly to the people outside of the business? A) Managerial Accounting. B) Financial Accounting. Show Answer Correct Answer: B) Financial Accounting. ← 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