This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 128 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 128 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. (h) ..... :A document sent by a customer to a supplier in respect of goods returned or overpayment made. It is a formal request for the supplier to issue a credit note. A) Debit note. B) Credit note. C) Goods received note (GRN). D) Goods dispatched (delivery) note (GDN). E) Statement. Show Answer Correct Answer: A) Debit note. 2. Why is deferred taxation accounted for in financial statements? A) Tax losses occur and they have to be anticipated. B) Taxation rates vary between countries. C) The prudence principle dictates that it should be so. D) A mismatch can occur because GAAP recognition criteria for items of income and expense are different from the treatment of items under tax law. Show Answer Correct Answer: D) A mismatch can occur because GAAP recognition criteria for items of income and expense are different from the treatment of items under tax law. 3. When a business purchase an assets by cash ..... A) Asset decrease, Liability increase. B) Asset increase, liability increase. C) Asset increase, asset decrease. D) Expenses increase, asset increase. Show Answer Correct Answer: C) Asset increase, asset decrease. 4. Which of the following will be treated as preferential creditors? A) Government Taxes. B) Trade Creditors. C) Unsecured loans. D) None of above. Show Answer Correct Answer: A) Government Taxes. 5. Users of accounting information is? A) Potential Investors. B) Suppliers. C) Management. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Use information in question one to answer this question A) #16, 500. B) #11, 500. C) #9, 500. D) #6, 500. Show Answer Correct Answer: C) #9, 500. 7. In hire purchase system, the ownership passes immediately to the vendor on down payment A) True. B) False. Show Answer Correct Answer: B) False. 8. The US government agency with authority over the financial reporting requirements of publicly traded corporations is the ..... A) AICPA. B) FASB. C) IRS. D) SEC. Show Answer Correct Answer: D) SEC. 9. There's no difference between Accounting Concepts and Accounting Conventions. A) True. B) False. Show Answer Correct Answer: B) False. 10. A book of original entry where transactions are first recorded. A) General Journal. B) General Ledger. C) Trial Balance. D) Subsidiary Ledger. Show Answer Correct Answer: A) General Journal. 11. Shareholders receive annual accounts, prepared in accordance with legal and professional requirements A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 12. Managers are the ..... users of accounting. A) Internal. B) External. Show Answer Correct Answer: A) Internal. 13. The December 31, 2018 trial balance for Rueda Company included the following:Purchases, P40, 000; Purchase returns and allowances, P2, 000; Transportation in, P3, 000; ending inventory was P8, 000. What was the cost of goods sold for 2018? A) 39, 000. B) 33, 000. C) 38, 000. D) None of the choices. Show Answer Correct Answer: B) 33, 000. 14. Which of the following is most useful for managers? A) Financial statements for the last financial year. B) Tax records for the past five years. C) Budgets for the coming financial year. D) Bank statements for the past year. Show Answer Correct Answer: C) Budgets for the coming financial year. 15. A chart of accounts (COA) is an ordered listing of accounts that comprise a company's general ledger A) True. B) False. Show Answer Correct Answer: A) True. 16. Which of the following is a real account? A) Plant account. B) Salaries account. C) Creditors account. D) Trading account. Show Answer Correct Answer: A) Plant account. 17. Net Book Value is A) Cost-depreciation. B) Cost-Accumulated Depreciation. C) Cost + Depreciation. D) Cost + Accumulated Depreciation. Show Answer Correct Answer: B) Cost-Accumulated Depreciation. 18. Revenue expenditure is the outflow of funds to acquire an asset that will benefit the business for not more than one accounting period. A) True. B) False. Show Answer Correct Answer: A) True. 19. Prudence is a concept to recognise all losses and not profits. A) True. B) False. Show Answer Correct Answer: B) False. 20. Which is not a financial statement A) Income statement. B) Balance sheet. C) Statement of assets. D) Statement of cash flows. Show Answer Correct Answer: C) Statement of assets. ← 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