This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 133 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 133 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an asset according to the definition in the Conceptual framework? A) Bank overdraft. B) Factory buildings. C) Payables. D) Amounts owed to tax authorities. Show Answer Correct Answer: B) Factory buildings. 2. Which type of business organization has the following characteristics?is owned by 2 to 20 personhas unlimited liabilityhas no legal obligation to audit the accounts A) Sole trader. B) Partnership. C) Company. D) None of above. Show Answer Correct Answer: B) Partnership. 3. How can shares be issued? A) At par. B) At premium. C) At discount/reduction. D) On all of the following. Show Answer Correct Answer: D) On all of the following. 4. Which form of business forms a separate legal entity? A) Sole proprietorship. B) Partnership. C) Corporation. D) All of the above. Show Answer Correct Answer: C) Corporation. 5. Hire purchase price includes A) Cash price and interest. B) Cash price and down payment. C) Down payment and interest. D) Total Price. Show Answer Correct Answer: A) Cash price and interest. 6. Which process is used to manage money owed by customers for goods and services purchased from the company? A) General ledger accounting. B) Accounts receivable accounting. C) Fixed asset accounting. D) Bank ledger accounting. E) All of the above. Show Answer Correct Answer: B) Accounts receivable accounting. 7. Thornton's Department Store has a 30%-off sale this week. What is the sale price for a pair of $ 24.00 jeans? A) $ 2.40. B) $ 7.20. C) $ 16.80. D) $ 21.60. Show Answer Correct Answer: C) $ 16.80. 8. Outstanding checks refer to checks that have been: A) Issued by the bank. B) Written and not yetrecorded in the company books. C) Written, recorded on thecompany books, sent to the payee, but not yet paid by the bank. D) Written with insufficient funds. Show Answer Correct Answer: C) Written, recorded on thecompany books, sent to the payee, but not yet paid by the bank. 9. A form requesting that a vendor sell merchandise to a business is called A) Purchase order. B) Purchase invoice. C) Articles of incorporation. D) Stock purchase. Show Answer Correct Answer: A) Purchase order. 10. Which of the following is found in a sales ledger account? A) Credit purchases. B) Bills payable. C) Discount received. D) Discount allowed. Show Answer Correct Answer: D) Discount allowed. 11. Journal Entry for Selling Furniture in Cash is? A) Furniture A/C (Debit)-To Cash A/C (Credit). B) Cash A/C (Debit)-To Furniture A/C (Credit). C) Cash A/c (Debit)-To Sales A/c(Credit). D) Sales A/c (Debit)-To Furniture A/c(Credit). Show Answer Correct Answer: B) Cash A/C (Debit)-To Furniture A/C (Credit). 12. Non profit organization are those organization which do not have A) Balancing motive. B) Profit motive. C) Loss motive. D) None of the above. Show Answer Correct Answer: B) Profit motive. 13. Step 3 in the Accounting Cycle. A) Ledger. B) Source Documents. C) Trial Balance. D) Closing Entries. Show Answer Correct Answer: A) Ledger. 14. The first step in the recording process is to A) Prepare financial statements. B) Analyze each transaction for its effect on the accounts. C) Post to a journal. D) Prepare a trial balance. Show Answer Correct Answer: B) Analyze each transaction for its effect on the accounts. 15. An increase in economic benefits during the period of time in the form of inflows. A) Liabilities. B) Income. C) Expenses. D) None of above. Show Answer Correct Answer: B) Income. 16. Which account is least likely to appear in an adjusted journal entry? A) Cash. B) Interest receivable. C) Property tax expense. D) Salaries payable. Show Answer Correct Answer: A) Cash. 17. Accounting is an information system for business A) True. B) False. Show Answer Correct Answer: A) True. 18. The purpose of adjusting entries is to: A) Adjust the Retained Earnings account for the revenue, expense, and dividends recorded during the accounting period. B) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transactions. C) Apply the realization principle and the matching principle to transactions affecting two or more accounting periods. D) Prepare revenue and expense accounts for recording the transactions of the next accounting period. Show Answer Correct Answer: C) Apply the realization principle and the matching principle to transactions affecting two or more accounting periods. 19. Business transactions are kept completely separate from its owners A) Cost Principle. B) Monetary Unit Principle. C) Distinct Entity Principle. D) Time Period Principle. Show Answer Correct Answer: C) Distinct Entity Principle. 20. The final stage of the accounting process is A) Interpretation. B) Recording. C) Reporting. D) Summarizing. Show Answer Correct Answer: A) Interpretation. ← 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