This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 130 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 130 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is the correct order financial statements should be completed. A) Income Statement, Balance Sheet, Retained Earnings Statement, Statement of Cash Flows. B) Income Statement, Retained Earnings Statement, Statement of Cash Flows, Balance Sheet. C) Balance Sheet, Statement of Cash Flows, Income Statement, Statement of Retained Earnings. D) Income Statement, Retained Earnings Statement, Balance Sheet, Cash Flows Statment. Show Answer Correct Answer: D) Income Statement, Retained Earnings Statement, Balance Sheet, Cash Flows Statment. 2. Which one is the correct answer based on it's stage? A) Stage 1:Deliberation at the WG level on IASB's draft pronouncements. B) Stage 3 and 4:Issuance of standard by the MASB. C) Stage 2:Deliberation by the MASB. D) Stage 5, 6 & 7:Issuance of Standard by the IASB. Show Answer Correct Answer: D) Stage 5, 6 & 7:Issuance of Standard by the IASB. 3. The following accounts that are not included in the fixed assets group are..... A) Vehicle. B) Factory building. C) Provision of Merchandise. D) Machines. Show Answer Correct Answer: C) Provision of Merchandise. 4. Griffon Incorporated holds a 30% ownership in Duck Corporation. Griffon should use the equity method under which of the following circumstances? A) Griffon has surrendered significant stockholder rights by agreement between Griffon and Duck. B) Griffon has been unable to secure a position on the Duck Corporation's Board of Directors. C) Griffon has inadequate or untimely information to apply the equity method. D) The ownership of Duck Corporation is diverse. Show Answer Correct Answer: D) The ownership of Duck Corporation is diverse. 5. ..... are the outflowof money from a business due to its operations, e.g. wages, salaries, rent and the purchase of stock. A) Profit. B) Costs. Show Answer Correct Answer: B) Costs. 6. Which option gives report on financial status of a firm? A) Income & Expenditure Account. B) Balance Sheet. C) Cash Flow Statement. D) Profit & Loss Account. Show Answer Correct Answer: B) Balance Sheet. 7. What are the different types of financial ratios used in financial analysis? A) Growth ratios, market ratios, investment ratios, and debt ratios. B) Liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios. C) Income ratios, expense ratios, asset ratios, and liability ratios. D) Cash flow ratios, budget ratios, credit ratios, and risk ratios. Show Answer Correct Answer: B) Liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios. 8. A plant was purchased on January 01, 200X at a cost of $ 100, 000 and has been depreciated at a rate of 2% per annum, on the straight line basis. 20 years later, the plant is professionally revalued at $ 120, 000. 5 years later from the first revaluation, the plant is revalued at $ 20, 000. What should be recorded in relation to this revaluation A) Decrease in revaluation surplus of $ 60, 000. B) Decrease in revaluation surplus of $ 60, 000 and increase in expense of $ 20, 000. C) Increase in expense of $ 80, 000. D) Other. Show Answer Correct Answer: B) Decrease in revaluation surplus of $ 60, 000 and increase in expense of $ 20, 000. 9. Subsidiary books are more adequate for which type of business organisation A) Sole Proprietor. B) Big Business. C) Small Business. D) Partnership. Show Answer Correct Answer: B) Big Business. 10. After the March 2023 financial year, the total operations of accounts 7 is 3/2 the total operations of accounts 6. What are the amounts of income and expenses if the result is 12000. A) Count 7:2000/ Count 6:4000. B) Count 7:30000/ count 6:10000. C) Count 7:20000/ count 6:8000. D) Account 7:36000/ account 6:24000. Show Answer Correct Answer: D) Account 7:36000/ account 6:24000. 11. The income from an equity method investee is reported on one line of the investor company's income statement except when: A) The cost method is used. B) The investee has extraordinary items. C) The investor company is amortizing cost-book value differentials. D) The investor company changes from the cost to the equity method. Show Answer Correct Answer: B) The investee has extraordinary items. 12. Which of the following transactions should be disclosed as related party transaction in the entity's separate financial statements for the current year? A) Key management personnel compensation. B) Sales to affiliated entities. C) Key management personnel compensation and sales to affiliated entities. D) Neither key management personnel compensation nor sales to affiliated entities. Show Answer Correct Answer: C) Key management personnel compensation and sales to affiliated entities. 13. Drawings taken from the bank what is the double entry A) Dr CapitalCr Bank. B) Dr DrawingsCr Capital. C) Dr DrawingsCr Bank. D) Dr DrawingsCr Case. Show Answer Correct Answer: C) Dr DrawingsCr Bank. 14. It takes into consideration all prospective losses but leaves all prospective profits A) Convention of Conservatism. B) Convention of consistency. C) Convention of Full Disclosure. D) Convention of Materiality. Show Answer Correct Answer: A) Convention of Conservatism. 15. When the amount of closing capital (after adjusting drawings ) is less than that of opening capital the difference will be treated as A) Loss. B) Profit. C) Additional capital. D) None of them. Show Answer Correct Answer: A) Loss. 16. (c) ..... :A document of the company that details an order placed by a customer for goods or services. A) Quotation. B) Purchase order. C) Statement. D) Debit advice. E) Sales order. Show Answer Correct Answer: E) Sales order. 17. ..... provides information for income determination A) Financial accounting. B) Cost accounting. C) Management accounting. D) None of these. Show Answer Correct Answer: A) Financial accounting. 18. What are bank charges in a bank reconciliation statement? A) Instruction given by the business to pay a certain amount of money to a named person at a regular interval. B) Mistakes made by both the bank and the business. C) Money given to a business from the profit made by a public limited liability company. D) Deductions the bank will remove from the business bank account for the services rendered. Show Answer Correct Answer: D) Deductions the bank will remove from the business bank account for the services rendered. 19. Merchandise inventory method that produces high net profits when inflation occurs A) FIFO. B) LIFO. C) Average. D) Specific Identification. Show Answer Correct Answer: A) FIFO. 20. Step 1 in the Accounting Cycle A) Adjusted Trial Balance. B) Source Documents. C) Closing Entries. D) Journal. Show Answer Correct Answer: B) Source Documents. ← 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