This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 137 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 137 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Cost accounting is needed by which type of users A) Internal users. B) External users. Show Answer Correct Answer: A) Internal users. 2. In the Double Entry System, every business transaction affects the same side of two accounts A) True. B) False. Show Answer Correct Answer: B) False. 3. Which is accurate? A) Assets = Liabilities + Equity. B) Assets-Liabilities = Equity. C) Liabilities = Equity-Assets. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. Mr. Nat has the following personal assets and liabilities:Cash 10, 000 baht, bank deposit 5, 000 baht, car 200, 000 baht, house 300, 000 baht, land 100, 000 baht, borrowed money from the bank 120, 000 baht. I would like to know how much total assets Mr. Nat has. A) 615, 000 baht. B) 735, 000 baht. C) 495, 000 baht. D) 120, 000 baht. Show Answer Correct Answer: A) 615, 000 baht. 5. Separation of personal and corporate wealth A) Economic Entity. B) Going Concern. C) Materiality. D) Periodicity. Show Answer Correct Answer: A) Economic Entity. 6. In the trial balance 31 December 2015 there was prepaid advertising of Rp. 3, 000, 000.00. At the end of the year there was a statement that Rp. 1, 000, 000.00 had become an expense. From these data, the prepaid rent account on the adjusted trial balance is..... A) IDR 250, 000.00. B) IDR 4, 000, 000.00. C) IDR 1, 000, 000.00. D) IDR 3, 000, 000.00. E) IDR 2, 000, 000.00. Show Answer Correct Answer: E) IDR 2, 000, 000.00. 7. The Companies Act, Malaysian Accounting Standards Board (MASB), listing requirements of the Kuala Lumpur Stock Exchange (KLSE) and the guidelines of the Securities Commission (SC) are currently the major sources of reference for corporate reporting in Malaysia. A) True. B) False. Show Answer Correct Answer: A) True. 8. Contingent liabilities should be recorded when: A) They are probable and can be reasonably estimated. B) They are probable but the estimate is unknown. C) They are reasonably possible and the outcome is known. D) They are reasonably possible but the estimate is unknown. Show Answer Correct Answer: A) They are probable and can be reasonably estimated. 9. (b) ..... :A document of the company that details goods or services which the company wishes to purchase from another company. A) Quotation. B) Purchase order. C) Receipt. D) Debit advice. E) Statement. Show Answer Correct Answer: B) Purchase order. 10. Cost of Sales A) Indirect Expenses. B) Direct Expenses. C) Accounts Payable. D) Accounts Receivable. Show Answer Correct Answer: B) Direct Expenses. 11. When hire purchaser makes default in paying the instalment, the hire vendor has A) Right to take repossession of the asset. B) No right to take repossession. C) He has to approach the court. D) None of the above. Show Answer Correct Answer: A) Right to take repossession of the asset. 12. Depreciation is a top process A) Valuation. B) Cash Accumulation. C) Cost allocation. D) Appraisal. Show Answer Correct Answer: C) Cost allocation. 13. Fundamental Problems of Financial Accounting Theory A) Difficult/unfavorable selection (adverse selection). B) Behavioral deviation (moral hazard). C) Increase our understanding of the accounting environment. D) Accounting theory is based on fundamental research so that improvements in disclosure are based on investor decision making theory and capital market theory. E) Problems of Accounting Theory:how to reconcile the different roles above for accounting information. Show Answer Correct Answer: E) Problems of Accounting Theory:how to reconcile the different roles above for accounting information. 14. Adjusted Purchases is total of A) Purchases + Closing stock. B) Purchases + wages-closing stock. C) Opening Stock + Purchases-Closing Stock. D) Opening Stock +Purchases + Wages-Closing Stock. Show Answer Correct Answer: C) Opening Stock + Purchases-Closing Stock. 15. Unsold goods is called as A) Goods. B) Purchases. C) Stock. D) Assets. Show Answer Correct Answer: C) Stock. 16. A business recognizes revenues or expenses on the accounting books even though no cash changes hands. This business uses the ..... accounting method. A) Cash basis. B) Accrual basis. C) Principles Basis. D) Income Basis. Show Answer Correct Answer: B) Accrual basis. 17. Payments for rent are recognized as prepaid rent on March 1, 2021 for a rental period of 1 year Rp. 12, 000, 000. The company made the adjustment on August 31, 2021. The correct adjusting entry on the debit side is..... A) Prepaid Rent Rp. 10.000.000. B) Rent Expense Rp. 10.000.000. C) Prepaid Rent Rp. 6.000.000. D) Rent Expense Rp. 6.000.000. Show Answer Correct Answer: D) Rent Expense Rp. 6.000.000. 18. Outstanding rent account is personal account A) Yes. B) No. Show Answer Correct Answer: A) Yes. 19. Ascertain cost of goods sold from the following figures:Opening stock Rs. 3700Closing stock Rs.20800Purchases rs2500 A) Rs. 3700. B) Rs. 22000. C) Rs 2500. D) None of above. Show Answer Correct Answer: B) Rs. 22000. 20. Step 2 in the Accounting Cycle A) Journal. B) Source documents. C) Adjusted trial balance. D) Closing entries. Show Answer Correct Answer: A) Journal. ← 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