This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 15 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In which year were the first 14 banks nationalized in India? A) 1949. B) 1980. C) 1969. D) 1955. Show Answer Correct Answer: C) 1969. 2. Which of the following would normally NOT be found in the notes to the financial statements? A) Accounting rules applied in the company's financial statements. B) Additional detail supporting numbers reported in the company's financial statements. C) Relevant financial information not presented in the company's financial statements. D) All of the above would be found in the notes to the financial statements. Show Answer Correct Answer: D) All of the above would be found in the notes to the financial statements. 3. Departments are located in A) Same place. B) Outside the city. C) Another city. D) Foreign country. Show Answer Correct Answer: A) Same place. 4. The timeliness principle assumes that an organization's activities can be divided into specific periods. A) True. B) False. Show Answer Correct Answer: A) True. 5. When a company pays a bill, the account Cash will be A) Debited. B) Credited. Show Answer Correct Answer: B) Credited. 6. According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on? A) Generally accepted accounting principles. B) Reporting on management's stewardship. C) The need for conservatism. D) The needs of the users of the information. Show Answer Correct Answer: D) The needs of the users of the information. 7. The purpose of trading account is to ascertain ..... A) Gross profit. B) Gross loss. C) Gross profit/loss. D) Net profit/loss. Show Answer Correct Answer: C) Gross profit/loss. 8. Adjusting entries are made at the beginning of the accounting period. A) True. B) False. Show Answer Correct Answer: B) False. 9. Which is a current asset? A) Land. B) Computer. C) Bank deposit. D) Car. Show Answer Correct Answer: C) Bank deposit. 10. Which of the following is nominal account A) Outstanding interest account. B) Prepaid interest account. C) Accrued Interest account. D) Interest Account. Show Answer Correct Answer: D) Interest Account. 11. It involves using financial data to assess a company's performance and make recommendations about how it can improve going forward A) FINANCIAL REPORTING. B) FINANCIAL ANALYSIS. Show Answer Correct Answer: B) FINANCIAL ANALYSIS. 12. Find the term to match the meaning below:Total value of inventory returned to suppliers by the business, (e.g. when the wrong goods are delivered by the supplier or a greater quantity than ordered is delivered) A) Carriage in. B) Purchase returns. C) Sales returns. D) Carriage out. Show Answer Correct Answer: B) Purchase returns. 13. At the end of the year, the balance on a firm's sales ledger control account was $ 12 900. The total of the customers' accounts in sales ledger was $ 11 900.The following errors were then discovered.1 A customer's account had been undercast by $ 700.2 A contra with a supplier in the purchases ledger of $ 200 had only been entered in the sales ledger control account.3 The discount allowed column in the cash book totalled $ 500. This had not been posted to the nominal ledger.What was the correct balance on the sales ledger control account? A) $ 11 200. B) $ 11 400. C) $ 12 000. D) $ 12 400. Show Answer Correct Answer: D) $ 12 400. 14. The Financial Reporting Standards Council (FRSC) was created by the BOA to assist the BoA in carrying out its power and function to A) Promulgate accounting standards in the Philippines. B) Promulgate auditing standards in the Philippines. C) Ensure that all higher educational instruction and offering of accountancy comply with the policies, standards and requirements of the course prescribed by CHED. D) Implement the CPE program. Show Answer Correct Answer: A) Promulgate accounting standards in the Philippines. 15. Who are the primary users of financial accounting information? A) Investors, creditors, government agencies, and management. B) Athletes, coaches, and fans. C) Students, teachers, and parents. D) Doctors, nurses, and patients. Show Answer Correct Answer: A) Investors, creditors, government agencies, and management. 16. Provision for Doubtful Debts is calculated on A) Creditors. B) Debtors. C) Capital. D) Profit. Show Answer Correct Answer: B) Debtors. 17. Which of these best describes fixed assets? A) Are items which will not wear out quickly. B) Are expensive items bought for the business. C) Are bought to be used in the business. D) Are of long life and are not bought specifically for resale. Show Answer Correct Answer: D) Are of long life and are not bought specifically for resale. 18. A business purchases equipment cash. In which account is the debit entry made? A) Cash. B) Equipment. Show Answer Correct Answer: B) Equipment. 19. Which of the following is an example of accrued expenses? A) Wages payable. B) Income tax payable. C) Revenue payable. D) Prepaid expenses. Show Answer Correct Answer: A) Wages payable. 20. The eight recurring steps performed each accounting period, starting with recording transaction in the journal and continuing through the post-closing trial balance is called the A) Accounting period. B) Accounting cycle. C) Operating cycle. D) Closing cycle. E) Natural business year. Show Answer Correct Answer: B) Accounting cycle. ← 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