This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 134 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 134 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Every Debit have a corresponding credit, is this statement A) True. B) False. C) Partially True. D) None of the above. Show Answer Correct Answer: A) True. 2. ..... is a financial statement that reports a business's assets, liabilities, and capital on a specific date. A) Balance sheet. B) Income Statement. C) Expenditure. D) Statement of Cash Account. Show Answer Correct Answer: A) Balance sheet. 3. IF AN ENTITY DEMOLISHES AN OLD BUILDING AND CONSTRUCTS A NEW BUILDING, ANY DEMOLITION COST INCURRED IS: A) CAPITALIZED AS COST OF THE LAND. B) CAPITALIZED AS COST OF THE NEW BUILDING. C) EXPENSED IMMEDIATELY. D) CHARGED TO RETAINIED EARNINGS. Show Answer Correct Answer: B) CAPITALIZED AS COST OF THE NEW BUILDING. 4. With this financial statement we can identify where the money is earned and where the money is spent A) Cash flow statement. B) Working capital. C) Current ratio. D) Debt/asset ratio. Show Answer Correct Answer: A) Cash flow statement. 5. Providing financial accounting information about economic activities for specified time/accounting periods ..... This principle pertains to ..... A) Accrual Principle. B) Business Entity. C) Periodicity Principle. D) Objectivity principle. Show Answer Correct Answer: C) Periodicity Principle. 6. When is trial balance prepared A) At the end of an accounting period. B) At the end of a year. C) Frequently during the year. D) At the end of a month. Show Answer Correct Answer: A) At the end of an accounting period. 7. An Acer brand computer was purchased for Rp. 7, 500, 000 and get a cash discount of 10%. Additional costs for installing the computer and setting it up so that the computer is ready for use is IDR. 250, 000. then the purchase price of the computer is..... A) Rp. 7.000.000. B) Rp. 7.500.000. C) Rp. 7.750.000. D) Rp. 6.750.000. E) Rp. 7.750.000. Show Answer Correct Answer: A) Rp. 7.000.000. 8. In a bonus issue of one share for every four held, a holder of 100, 000 shares will get additional shares of A) N50, 000. B) Nach, 000. C) N20, 000. D) N10, 000. Show Answer Correct Answer: B) Nach, 000. 9. Single entry system is also called as A) Double entry system. B) Book keeping system. C) Incomplete record system. D) Complete record system. Show Answer Correct Answer: C) Incomplete record system. 10. The assets which have no physical existence but have rights as their value are known as? A) Fixed Assets. B) Investments. C) Intangible Assets. D) Curreny Assets. Show Answer Correct Answer: C) Intangible Assets. 11. Which of the following best describes the proper presentation of accounts receivable in the financial statements? A) Gross accounts receivable plus the allowance for doubtful accounts in the asset section of the balance sheet. B) Gross accounts receivable in the asset section of the balance sheet and the allowance for doubtful accounts in the expense section of the income statement. C) Gross accounts receivable less bad debt expense in the asset section of the balance sheet. D) Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. Show Answer Correct Answer: D) Gross accounts receivable less the allowance for doubtful accounts in the asset section of the balance sheet. 12. Investments is an A) Asset. B) Liability. C) Income. D) Expenditure. Show Answer Correct Answer: A) Asset. 13. It is the last day of the fiscal period and your business shut down to complete an end-of-fiscal period inventory count. What inventory amount should go on the balance sheet? A) Predicated inventory. B) Perpetual inventory. C) Skewed inventory. D) Periodic inventory. Show Answer Correct Answer: D) Periodic inventory. 14. In partnership, partners liabilities are A) Limited. B) Unlimited. C) Limited to the capital invested. D) Limited to the amount mentioned. Show Answer Correct Answer: B) Unlimited. 15. Temporary accounts are closed at period-end. They consist of revenue, expense, dividends and Income Summary. A) True. B) False. Show Answer Correct Answer: A) True. 16. When a company can get a tax refund from the government? A) When it is running low on cash. B) When its performance is extremely poor. C) When it incurrs a loss. D) When it goes bankrupt. Show Answer Correct Answer: C) When it incurrs a loss. 17. The branches of Accounting are the following except A) Tax accounting. B) Financial accounting. C) Cost accounting. D) Management accounting. Show Answer Correct Answer: A) Tax accounting. 18. A waste paper basket costing $ 30 is being depreciated over 5 years. Which principle of accounting is violated? A) Separate entity. B) Disclosure. C) Materiality. D) Realization. Show Answer Correct Answer: C) Materiality. 19. Financial accounting provides the primary source of information for: A) Decision making in the finishing department. B) Improving customer service. C) Preparing the income statement for shareholders. D) Planning next year's operating budget. Show Answer Correct Answer: C) Preparing the income statement for shareholders. 20. The Financial Accounting Standard Board (FASB) is primarily responsible for which of the following? A) Hiring chief executive officers for large corporations. B) Pressing charges against employees accused of fraud. C) Hiring the boards of directors for major corporations. D) Establishing and improving generally accepted accounting principles. Show Answer Correct Answer: D) Establishing and improving generally accepted accounting principles. ← 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