This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 129 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 129 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Wages paid for the construction of building were recorded in wages account. This is ..... A) Error of omission. B) Error of commission. C) Compensating error. D) Error of principle. Show Answer Correct Answer: D) Error of principle. 2. Rules for the way financial statements should be prepare that help guide businesses in accounting procedures. A) Accounting. B) Accounting Equation. C) Accrual Accounting. D) GAAP. Show Answer Correct Answer: D) GAAP. 3. According to straight line method of providing depreciation, the depreciation A) Remains constant. B) Increase each year. C) Decrease each year. D) None of them. Show Answer Correct Answer: A) Remains constant. 4. Recording of transactions and events as and when they occur and classifying them into suitable account heading is the subject matter of A) Financial accounting. B) Cost accounting. C) Management accounting. D) Book keeping. Show Answer Correct Answer: D) Book keeping. 5. Conversion method is also known as A) Net worth method. B) Statement of affairs method. C) Expenditure method. D) Final account method. Show Answer Correct Answer: D) Final account method. 6. In computing diluted EPS, dividends on convertible cumulative preference shares should be A) Ignored. B) Deducted from net income, whether declared or not. C) Deducted from net income only when declared. D) Added to net income net of tax. Show Answer Correct Answer: A) Ignored. 7. A financial statement that reports how much cash a business took in and where the cash went. A) Income statement. B) Cash flow statement. C) Balance sheet. D) All of the above. Show Answer Correct Answer: B) Cash flow statement. 8. Alicia went to the local farmer's market to buy some fresh produce. She bought carrots for 35% OFF the original price of $ 7.40. How much did Alicia pay for the carrots? A) 4.81. B) 2.59. C) 9.99. D) 3.50. Show Answer Correct Answer: A) 4.81. 9. It is the process of transferring data from the journal to the appropriate accounts in the ledger. A) Journalizing. B) Ledger. C) Posting. D) Accounting. Show Answer Correct Answer: C) Posting. 10. You have a controlling interest if: A) You own more than 20% of a company's stock. B) You are the president of the company. C) You use the equity method. D) You own more than 50% of a company's stock. Show Answer Correct Answer: D) You own more than 50% of a company's stock. 11. In the books of lessee shortworkings recoverable in future years are A) A revenue expense. B) A normal loss. C) An asset. D) A liability. Show Answer Correct Answer: C) An asset. 12. Accounting is an A) Art. B) Process. C) Science. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. It encourages the accountant to post each entry in opposite sides of two affected accounts A) Money Measurement Concept. B) Full disclosure convention. C) Dual aspect Concept. D) Realisation concept. Show Answer Correct Answer: C) Dual aspect Concept. 14. Banks frequently require more information than is supplied in the published accounts when considering applications for loans and overdraft facilities A) Yes, banks may require cash flow and profit forecasts and budgets prepared to show management's estimates of future activity in the business. B) NO, banks may require cash flow and profit forecasts and budgets prepared to show management's estimates of future activity in the business. Show Answer Correct Answer: A) Yes, banks may require cash flow and profit forecasts and budgets prepared to show management's estimates of future activity in the business. 15. Capital Expenditure is A) The costs of running the business on a day-to-day basis. B) Money spent on buying fixed assets or adding value to them. C) Money spent on selling fixed assets. D) The extra capital paid in by the proprietor. Show Answer Correct Answer: B) Money spent on buying fixed assets or adding value to them. 16. The portion of subscribed capital which is called for payment by the company is called ..... A) Paid-up Capital. B) Subscribed Capital. C) Called-up Capital. D) Nominal Capital. Show Answer Correct Answer: C) Called-up Capital. 17. How to record sales return originally a credit transactions? A) Dr Sales ReturnCr Receivables. B) Dr Sales ReturnCr Cash. C) Dr cash Cr sales return. D) Dr receivablesCr Sales Return. Show Answer Correct Answer: A) Dr Sales ReturnCr Receivables. 18. Total of purchases book is A) Posted to the credit of Purchases account. B) Posted to the debit of Purchases account. C) Posted to two column cash book. D) None of the above. Show Answer Correct Answer: B) Posted to the debit of Purchases account. 19. Nazarene invested P69, 000, 000 for her business. A) Dr. CashCr. Capital. B) Dr. CapitalCr. Cash. C) Dr. CashCr. Nazarene, Capital. D) Dr. Nazarene, CapitalCr. Cash. Show Answer Correct Answer: C) Dr. CashCr. Nazarene, Capital. 20. Profit sharing for Stockholders A) Common Stock. B) Retained Earning. C) Withdrawal Drawing. D) Dividend. Show Answer Correct Answer: D) Dividend. ← 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