This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 132 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 132 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. For accounting purposes the "business" is treated as a separate entity (Individual) from the proprietor (s). A) Money Measurement. B) Business Entity. C) Periodicity Concept. D) Matching Concept. Show Answer Correct Answer: B) Business Entity. 2. ALL OF THE FOLLOWING FINANCIAL ASSETS ARE SUBJECT TO IMPAIRMENT, EXCEPT: A) BOND INVESTMENT AT AMORTIZED COST. B) BOND INVESTMENT AT FVOCI. C) LOAN RECEIVABLE AT AMORTIZED COST. D) BOND INVESTMENT AT FVPL. Show Answer Correct Answer: D) BOND INVESTMENT AT FVPL. 3. During 2017, Susi sold goods costing $ 500 to its subsidiary, Kiki, at a mark-up of 20%. Kiki had had $ 100 of these goods on hand at Dec 31, 2017. What is the elimination worksheet entry to eliminate intercompany sales? A) Dr. Sales $ 600Cr. Cost of sales $ 600. B) Dr. Sales $ 625Cr. Cost of sales $ 625. C) Dr. Cost of sales $ 25Cr. Inventory $ 25. D) Dr. Cost of sales $ 100Cr. Inventory $ 100. E) Dr. Sales $ 20Cr. Cost of sales $ 20. Show Answer Correct Answer: A) Dr. Sales $ 600Cr. Cost of sales $ 600. 4. Find the sales ratio18, 000:12, 000:27, 000 A) 3:9:6. B) 6:3:9. C) 2:3:4. D) 9:3:6. Show Answer Correct Answer: B) 6:3:9. 5. INVENTORY COST DOES NOT INCLUDE: A) PURCHASE PRICE. B) REBATES. C) IMPORT DUTIES. D) FREIGHT. Show Answer Correct Answer: B) REBATES. 6. The accountant's word to indicate that an entry will be recorded on the right-side of an account is ..... A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 7. Abnormal wastages should be included in the cost of inventories as per AS-2. A) True. B) False. Show Answer Correct Answer: B) False. 8. On May 20 2017, PT Usaha Bersama purchased a vehicle for IDR 220, 000, 000.00, VAT 10%. The costs incurred in connection with the purchase of the vehicle are transfer fees amounting to IDR 2, 500, 000.00. The amount of vehicle at cost is..... A) Rp 220.000.000, 00. B) Rp 222.500.000, 00. C) Rp 242.000.000, 00. D) Rp 244.500.000, 00. Show Answer Correct Answer: D) Rp 244.500.000, 00. 9. What does R.W.1 mean? A) Journal page 1. B) Fast. C) Be careful. D) Period book. Show Answer Correct Answer: A) Journal page 1. 10. Manufacturing firms like to compare their cost of manufacture with the wholesale cost of their output. Why do they do this? A) To see whether it has been more or less profitable to manufacture the products rather than purchase them. B) To report to managers on the quality of their products. C) To apportion costs to different areas of the business. D) To investigate how many units are required to breakeven. Show Answer Correct Answer: A) To see whether it has been more or less profitable to manufacture the products rather than purchase them. 11. What is the journal entry to pay the tax liabilities of employee income tax, Medicare, and Social Security? A) Debit payroll Deduction Expense, Medicare Payment, Social Security Payment:Credit Cash. B) Debit Business Tax Payable, Medicare Payment, Payroll Expense; Credit Capital. C) Debit Cash; Credit employee income tax payable, Medicare payable, social security payable. D) Debit employee Income tax payable, Medicare payable, social security payable, credit cash. Show Answer Correct Answer: D) Debit employee Income tax payable, Medicare payable, social security payable, credit cash. 12. Trial Balance would not disclose error of omission. A) True. B) False. Show Answer Correct Answer: A) True. 13. A cash deposit made by business appears on the bank statement as ..... balance. A) Debit. B) Credit. C) Expenses. D) Liabilities. Show Answer Correct Answer: B) Credit. 14. Arrange the following items in the order of the accounting cycle:1. record transactions into the book of original entry2. prepare financial statements3. make period-end adjustments4. post transactions to ledger A) 1432. B) 4132. C) 1423. D) 4123. Show Answer Correct Answer: A) 1432. 15. PD Markisa has a note worth IDR 12, 000, 000 with a term of 90 days and 8% interest. The note was issued on August 5 2018. Based on this data, the maturity date of the note is..... A) October 31, 2018. B) 2 November 2018. C) 3 November 2018. D) 4 November 2018. E) 5 November 2018. Show Answer Correct Answer: C) 3 November 2018. 16. Trial balance can be prepared A) At any time of year. B) At the end of year. C) In the beginning of year. D) None of above. Show Answer Correct Answer: A) At any time of year. 17. Which of the following documents authorizes the purchase transaction? A) Credit memo from supplier. B) Invoice or bill from supplier. C) Purchase order. D) Purchase requisition. Show Answer Correct Answer: B) Invoice or bill from supplier. 18. PREDICTIVE AND CONFIRMATORY VALUE ARE THE INGREDIENTS OF: A) UNDERSTABILITY. B) FAITHFUL REPRESENTATION. C) RELEVANCE. D) COMPLETENESS. Show Answer Correct Answer: C) RELEVANCE. 19. It checks the arithmetical accuracy of ledger accounts. A) Ledger. B) Account. C) Trial Balance. D) Final Accounts. Show Answer Correct Answer: C) Trial Balance. 20. Which of the following is not an internal user of accounting information? A) The bank. B) Owners. C) Managers. D) Employees. Show Answer Correct Answer: A) The bank. ← 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