This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 138 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 138 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Following the previous question, what are the amounts to be credited and debited for the operating expenses and e.a.p operating expenses accounts knowing that the credit amount was 6000. What are the balances at the account levels. A) Accounts 401:sd:4000/ account 405:sd:2000. B) 401:sc 6000/ 403:sc 2000. C) 401:sc 4000/ 403:sc 2000. D) 401:sc 3000/ 403:sc 1000. Show Answer Correct Answer: C) 401:sc 4000/ 403:sc 2000. 2. A buyer received an invoice for P6, 000 dated June 10. If the terms were 2/10, n/30, and the buyer paid the invoice within the discount period, what amount will the seller receive? A) P 6, 000. B) P 5, 880. C) P 4, 800. D) P 120. Show Answer Correct Answer: B) P 5, 880. 3. In management accounting, it is not a requirement to follow GAAP in preparing reports for internal purposes. A) True. B) False. Show Answer Correct Answer: A) True. 4. The following are objectives of amalgamation EXCEPT A) To reap economies of scale. B) To eliminate competition. C) To build up goodwill. D) To compete with government. Show Answer Correct Answer: D) To compete with government. 5. Liabilities of the petty cashier can never ..... the imprest amount A) Exceed. B) Equal. C) Less to. D) Reach. Show Answer Correct Answer: A) Exceed. 6. Bad Debts A/c is a Nominal Account A) True. B) False. Show Answer Correct Answer: A) True. 7. The Father of Accounting A) Luca Pacioli. B) Luca De Borgo Pacioli. C) Charles Babbage. D) Luca Charles pacilo. Show Answer Correct Answer: B) Luca De Borgo Pacioli. 8. The amount of a natural resource used up during the period A) Depreciation. B) Depletion. C) Amortization. D) Goodwill. Show Answer Correct Answer: B) Depletion. 9. Panahon Company bought equipment costing P50, 000 on account. A) Dr. EquipmentCr. Accounts Payable. B) Dr. Accounts PayableCr. Equipment. C) Dr. Accounts ReceivableCr. Equipment. D) Dr. EquipmentCr. Accounts Receivable. Show Answer Correct Answer: A) Dr. EquipmentCr. Accounts Payable. 10. Expenses due for this year not paid A) Prepayments. B) Accrued incomes. C) Advance incomes. D) Accrued Expense. Show Answer Correct Answer: D) Accrued Expense. 11. WHICH OF THE FOLLOWING IS INCORRECT ORDER? A) RECORDING IN JOURNAL, ADJUSTING ENTRIES, ANALYZE DOCUMENTS. B) ADJUSTING ENTRIES, FINANCIAL STATEMENTS, CLOSING ENTRIES. C) POSTING TO LEDGER, CLOSING ENTRIES, ADJUSTING ENTRIES. D) POST CLOSING TRIAL BALANCE, RECORDING IN JOURNAL, FINANCIAL STATEMENTS. Show Answer Correct Answer: B) ADJUSTING ENTRIES, FINANCIAL STATEMENTS, CLOSING ENTRIES. 12. The cash difference is underreported in the income statement in the post..... A) Operating income. B) Operational expenses. C) Other burdens. D) Other income. Show Answer Correct Answer: C) Other burdens. 13. Which financial statement uses the expanded accounting equation? A) Income statement. B) Balance sheet. C) Cash flow statement. D) Statement of owner's equity. Show Answer Correct Answer: B) Balance sheet. 14. Which of the following statements is true about assets? A) They are the properties or economic resources owned by the business. B) They are available to provide future benefits to the business. C) They can be intangible rights. D) Ownership is shared between creditors and owners. E) All of these answers are correct. Show Answer Correct Answer: E) All of these answers are correct. 15. During 2017, Rob sold goods costing $ 1, 500 to its subsidiary, Sam, at a gross profit of 20%. Sam had none of this inventory on hand at the end of 2017. What is the elimination worksheet entry to eliminate intercompany sales? A) Dr. CoGS $ 1, 500Cr. Inventories $ 1, 500. B) Dr. Sales 1, 875Cr. CoGS 1, 875. C) Dr. CoGS $ 1, 500Cr. Sales $ 1, 500. D) Dr. CoGS $ 1, 875Cr. Inventories $ 1, 875. E) None of the above. Show Answer Correct Answer: B) Dr. Sales 1, 875Cr. CoGS 1, 875. 16. Which forecasting method would best be utilized by a business who has data on the past five fiscal periods and wants to forecast their next fiscal period? A) Take the lowest fiscal period. B) Average all fiscal periods. C) Take the highest fiscal period. D) Average the two highest fiscal periods. Show Answer Correct Answer: B) Average all fiscal periods. 17. The company receives cash from a bank loan.-The liabilities will A) Increase. B) Decrease. C) No effect. D) None of above. Show Answer Correct Answer: A) Increase. 18. What is the normal balance for liabilities? A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 19. Which ONE of the following statements correctly describes how International Financial Reporting Standards (IFRSs) should be used? A) To provide examples of best financial reporting practice for national bodies who develop their own requirements. B) To ensure high ethical standards are maintained by financial reporting professionals internationally. C) To facilitate the enforcement of a single set of global financial reporting standards. D) To prevent national bodies from developing their own financial reporting standards. Show Answer Correct Answer: A) To provide examples of best financial reporting practice for national bodies who develop their own requirements. 20. 'Useful for making prediction and confirming existing expectations.' What type of qualitative characteristics of Financial Statements that relates in above statement? A) Understandability. B) Verification. C) Reliability. D) Relevance. Show Answer Correct Answer: D) Relevance. ← 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