This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 140 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 140 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following are duties of accountants? A) Recording a business's transactions, promoting accountability, and planning how to allocate resources. B) Recording a business's transactions, promoting accountability, and making strategic business decisions. C) Promoting accountability, making strategic business decisions, and planning how to allocate resources. D) Planning how to allocate resources, making strategic business decisions, and recording a business's transactions. Show Answer Correct Answer: A) Recording a business's transactions, promoting accountability, and planning how to allocate resources. 2. The method that records income and costs, where income is reported when the transaction occurs and costs are reported when the costs are needed to generate business income is the..... A) Accrued expense. B) Unearned revenue. C) Accrued revenue. D) Cash basic accounting. E) Accrual basic accounting. Show Answer Correct Answer: E) Accrual basic accounting. 3. The primary stage of accounting function is called Book-keeping. A) True. B) False. Show Answer Correct Answer: A) True. 4. A profit on sale of furniture of a club will be taken to A) Income and expenditure account. B) Cash account. C) Receipts and payments account. D) Balance sheet. Show Answer Correct Answer: A) Income and expenditure account. 5. This type of accounting uses information to make estimates for the future A) Management Accounting. B) Financial Accounting. Show Answer Correct Answer: A) Management Accounting. 6. Government aims to gradually increases the public health expenditure to what percent of GDP by 2025? A) 1.5%. B) 3.5%. C) 2.5%. D) 7.5%. Show Answer Correct Answer: C) 2.5%. 7. Sales = Cost of goods sold ..... grossprofit A) %. B) +. C) . D) X. Show Answer Correct Answer: B) +. 8. What are known as temporary accounts and closed the books upon? A) Assets, Liabilities, Owner Equity. B) Revenue, Expenses, Withdrawals. C) Withdrawals, Revenue, Owner's equity. D) Assets Liabilities and revenue. Show Answer Correct Answer: B) Revenue, Expenses, Withdrawals. 9. Which of the following accounts category with normal balance are shown at the credit side of a trial balance? A) Assets and Income. B) Liabilities and Income. C) Assets and Expenses. D) Liabilities and Expenses. Show Answer Correct Answer: B) Liabilities and Income. 10. What should be added in closing capital for calculating opening capital? A) Profit and drawing. B) Loss and drawing. C) Profit only. D) Loss only. Show Answer Correct Answer: B) Loss and drawing. 11. Certificate of incorporation of LLP is issued by ..... A) Registrar of firms. B) Registrar of companies. C) Registrar of co-operative societies. D) Registrar of Universities. Show Answer Correct Answer: B) Registrar of companies. 12. According to going concern concept, a business entity is assumed to have. A) A long life. B) A short life. C) A very shori life. D) A definite life. Show Answer Correct Answer: A) A long life. 13. Financial accounting standard-setting A) Can be described as a social process which reflects political actions of various interested user groups as well as a product of research and logic. B) Is based solely on research and empirical findings. C) Is a legalistic process based on rules promulgated by government agencies. D) Is democratic on the sense that a majority of accountants must agree with the standard before it becomes enforceable. Show Answer Correct Answer: C) Is a legalistic process based on rules promulgated by government agencies. 14. Which category does depreciation fall under in the accounting equation? A) Assets. B) Owners equity. C) Liability. D) Expense. E) Imputed expense. Show Answer Correct Answer: E) Imputed expense. 15. The accounting equation for Cineo Enterprises is as follows:Assets Liabilities Owner's Equity$ 120, 000 = $ 60, 000 + $ 60, 000If Cineo purchases office equipment on account for $ 15, 000, the accounting equation will change to A) Assets Liabilities Owner's Equity$ 120, 000 = $ 60, 000 + $ 60, 000. B) Assets Liabilities Owner's Equity$ 135, 000 = $ 60, 000 + $ 75, 000. C) Assets Liabilities Owner's Equity$ 135, 000 = $ 67, 500 + $ 67, 500. D) Assets Liabilities Owner's Equity$ 135, 000 = $ 75, 000 + $ 60, 000. Show Answer Correct Answer: D) Assets Liabilities Owner's Equity$ 135, 000 = $ 75, 000 + $ 60, 000. 16. Based on the issue price, the share issue can be divided in to ..... A) Issue of shares at par. B) Issue of shares at premium. C) Issue of shares at discount. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Items appearing in Adjustments are taken A) Only once. B) Twice. C) No Effect. D) Ignore. Show Answer Correct Answer: B) Twice. 18. What is the format of a bank reconciliation statement? A) Balance as per adjusted cash book, add:unpresented cheques, credit transfer, dividend, less:uncredited cheques, standing order, bank charges, dishonoured cheque. B) Balance as per adjusted cash book, add:unpresented cheques, less:uncredited cheques, bank error. C) Balance as per bank statement, add:unpresented cheques, less:uncredited cheques, bank error. D) Balance as per cash book, add:unpresented cheques, less:uncredited cheques, bank error. Show Answer Correct Answer: B) Balance as per adjusted cash book, add:unpresented cheques, less:uncredited cheques, bank error. 19. First computers purchased computers from HCL Ltd. and availed both trade discount and cash discount. The transactions recorded in the books of account will be for: A) Net invoice value and cash discount. B) Trade discount, gross invoice value and cash discount. C) None of the above. D) Any of (a) and (b). Show Answer Correct Answer: A) Net invoice value and cash discount. 20. General reserve is created on the basis of convention of A) Conservatism. B) Uniformity. C) Materiality. D) Full disclosure. Show Answer Correct Answer: A) Conservatism. ← 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