This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 136 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 136 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The seller pays for freight A) FOB. B) FOB Merchandise. C) FOB Shipping Point. D) FOB Destination. Show Answer Correct Answer: D) FOB Destination. 2. The format of account that tells the balance after each entry is known as: A) T-account format. B) Advance account format. C) Running balance account format. D) None of the above. Show Answer Correct Answer: C) Running balance account format. 3. Which statement is incorrect regarding the FRSC? A) Shall be composed of fifteen (15) members with a chairman. B) Is the successor of the Accounting Standards Council (ASC), which was created in November 1981 by the Philippine Institute of Certified Public Accountants (PICPA). C) The Chairman and members of the FRSC are appointed by the PRC upon the recommendation of the BOA in coordination with the accredited professional organization (APO) of CPAs. D) Has the authority to establish the accounting framework to be used by companies under its jurisdiction. Show Answer Correct Answer: D) Has the authority to establish the accounting framework to be used by companies under its jurisdiction. 4. Paid to Sania Rs.9, 650 in full payment of her dues of Rs.10, 000. The journal entry is ..... A) Sania A/c Dr.10, 000 To Cash A/c 9, 650; To Discount Received A/c 350. B) Sania A/c Dr. 9, 650 Discount allowed A/c Dr. 350 To Cash A/c 10, 000. C) Sania A/c Dr.10, 000 To Cash A/c 10, 000. D) Cash A/c Dr 9, 650 Discount Allowed A/c Dr 350 To Sania A/c 10, 000. Show Answer Correct Answer: A) Sania A/c Dr.10, 000 To Cash A/c 9, 650; To Discount Received A/c 350. 5. What is the return on assets given the following:Net Income is $ 100, 000Beginning Assets are $ 30, 000Ending Assets are $ 10, 000Average Assets are $ 20, 000 A) 3.3. B) 5. C) 10. D) 4. Show Answer Correct Answer: B) 5. 6. Choose 1 description that NOT TRUE about intergrated accounting system A) HQ will maintained all transactions by branches in one ledger. B) HQ will be as supplier. C) Transactions by branches recorded and submitted to HQ. D) All account records manage by HQ. Show Answer Correct Answer: B) HQ will be as supplier. 7. On June 1, 2019, Oakcrest Company signed a three-year $ 110, 000 note payable with 9 percent interest. Interest is due on June 1 of each year beginning in 2020. What amount of interest expense should be reported on the income statement for the year ended December 31, 2019? A) $ 5, 250. B) $ 9, 900. C) $ 4, 950. D) $ 5, 775. Show Answer Correct Answer: D) $ 5, 775. 8. PD Jaya has a note receivable worth IDR 10, 000, with a term of 90 days and interest of 12% per year. Based on this transaction, the maturity value is..... A) Rp 8.800. B) Rp 10.000. C) Rp 10.300. D) Rp 11.200. E) Rp 9.700. Show Answer Correct Answer: C) Rp 10.300. 9. Customers A) Internal User. B) External User. Show Answer Correct Answer: B) External User. 10. A business has Current asset of £100, 000, Non current asset of 50, 000, Current liabilities of £20, 000 what is the Net Asset? A) £150000. B) £130000. C) £30000. D) £30000. Show Answer Correct Answer: B) £130000. 11. FINANCIAL ACCOUNTING PURPOSE IS A) FIND OUT COST. B) CONTROL COST. C) ASCERTAINMENT OF FINANCIAL POSITION & PROFIT/LOSS. D) BUDGETING. Show Answer Correct Answer: C) ASCERTAINMENT OF FINANCIAL POSITION & PROFIT/LOSS. 12. On November 9, 20x1, Entity G received $ 1, 200 from a subscriber to a magazine issued by the entity. Each issue of the magazine is published and sent to subscribers on the first day of each month. Prepare journal entries on the following dates:November 9, 20x1 A) Account Receivable (D) 1200Cash (K) 1200. B) Cash (D) 1200Unearned Service Revenue (K) 1200. C) Unearned Service Revenue (D) 1200Service Revenue (K) 1200. D) Account Receivable (D) 1200Service Revenue (K) 1200. Show Answer Correct Answer: B) Cash (D) 1200Unearned Service Revenue (K) 1200. 13. Paid office rent in cash for January SR5000 A) Rent Exensecash. B) Cash Rent Expense. C) Accounts payablecash. D) CashAccounts payable. Show Answer Correct Answer: A) Rent Exensecash. 14. A share in the share capital of company is called ..... A) Asset. B) Liability. C) Debenture. D) Share. Show Answer Correct Answer: D) Share. 15. Which type of business organization has a separate legal entity from its owner? A) Sole proprietorship. B) Partnership. C) Limited company. D) None of the above. Show Answer Correct Answer: C) Limited company. 16. The Assumption that revenues are recognised when earned and expenses when incurred so profit is calculated as Revenue earnt less expenses incurred is the A) Entity assumption. B) Period assumption. C) Accrual basis assumption. D) Going concern assumption. Show Answer Correct Answer: C) Accrual basis assumption. 17. The business owner, Jack invested $ 9000 into the business bank account. What is the double entry to record this transaction? A) Debit Bank and Credit Capital. B) Debit Capital and Credit Bank. C) Debit Capital and Credit Jack. D) Debit Jack and Credit Bank. Show Answer Correct Answer: A) Debit Bank and Credit Capital. 18. The document that contains the regulation which governs the internal management of the company's affairs is A) Memorandum of association. B) Prospectus. C) Articles of association. D) Certificate of incorporation. Show Answer Correct Answer: C) Articles of association. 19. The area of accounting that focuses on reporting information to external users is called managerial accounting. A) True. B) False. Show Answer Correct Answer: B) False. 20. Indirect expenses will be apportioned in A) P & L a/c. B) Trading a/c. C) General P&L a/c. D) Branch P& l a/c. Show Answer Correct Answer: A) P & L a/c. ← 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