This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one of the following cites has emerged as a ' electronic capital of India'? A) Delhi. B) Kolkata. C) Bangalore. D) Hyderabad. Show Answer Correct Answer: C) Bangalore. 2. Which of the following groups/organisations would be interested in the accounting records of a business enterprise? A) Management. B) Shareholders. C) Inland Revenue. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. The basic approach(es) to recording economic activity is(are) A) The true net income basis. B) The cash basis and the accrual basis. C) The cash basis. D) The accrual basis. Show Answer Correct Answer: B) The cash basis and the accrual basis. 4. The non-government organization that researches and develops new accounting standards is ..... A) AICPA. B) FASB. C) IRS. D) SEC. Show Answer Correct Answer: B) FASB. 5. To increase the balance in the following accounts, would you debit the account or would you credit the account?Land A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 6. An increase in revenue or liability results in a debit posting. A) True. B) False. Show Answer Correct Answer: B) False. 7. Debentures represent A) The investment of equity shareholders. B) Directors' share in the business. C) Long term liabilities of a business. D) Promoters investment. Show Answer Correct Answer: C) Long term liabilities of a business. 8. Below is the information about a company:Desa Berhad is a company incorporated in Malaysia that involved in providing telecommunication services. The company's shares are freely traded to the public. However, the company is not listed in any stock exchange market in Malaysia. Based on the above situation, Desa Berhad must comply with the following statutory regulation: A) Companies Act 2016 and Income Tax Act 1967. B) Companies Act 2016, Income Tax Act 1967, Regulation by Securities Commission Malaysia and Bursa Malaysia Listing Requirements. C) Companies Act 2016, Income Tax Act 1967 and Regulation by Securities Commission Malaysia. D) Companies Act 2016, Income Tax Act 1967, Regulation by Securities Commission Malaysia and Regulation by Bank Negara Malaysia. Show Answer Correct Answer: C) Companies Act 2016, Income Tax Act 1967 and Regulation by Securities Commission Malaysia. 9. Closing stock appearing in the trial balance is shown A) On Credit of Trading A/c only. B) On Balance Sheet Asset side only. C) On Credit of Trading Account & Balance sheet Asset side. D) If closing stock appears in Trial balance it does not appear in the Financial Statements. Show Answer Correct Answer: B) On Balance Sheet Asset side only. 10. Income for which the money has not been received in cash but has been recognized as income for the period concerned A) Accrued expense. B) Accrued revenue. C) Unearned revenue. D) Prepaid expenses. E) Operating expenses. Show Answer Correct Answer: B) Accrued revenue. 11. Plant Assets Costs for Buildings include all costs directly related to the purchase or construction, which include Purchase Costs and Construction Costs. Which is not the scope of purchase costs. A) Purchase costs. B) Closing costs. C) Building permit fees. D) Notary fees. Show Answer Correct Answer: C) Building permit fees. 12. Which of the following is not used in solving problems of incomplete records? A) Control accounts. B) Statement of affairs. C) Cash book. D) Balance sheet. Show Answer Correct Answer: D) Balance sheet. 13. The Matching Expenses with Revenue accounting concept is applied when the revenue earned and the expenses incurred to earn that revenue are reported in the same fiscal period. A) True. B) False. Show Answer Correct Answer: A) True. 14. An act of exchange of things or services between the two parties is termed as: A) Ledger. B) Transfer. C) Transactions. D) Business. Show Answer Correct Answer: C) Transactions. 15. What is the purpose of information presented in notes to the financial statements? A) To correct improper presentation in the financial statements. B) To provide disclosure required by generally accepted accounting principles. C) To present management's responses to auditor comments. D) To provide recognition of amounts not included in the totals of the financial statements. Show Answer Correct Answer: B) To provide disclosure required by generally accepted accounting principles. 16. Suspense Account shown in trial balance debit side will appear in A) Balance sheet assets side. B) Balance sheet liabilities side. C) Trading and Profit and loss account. D) None. Show Answer Correct Answer: A) Balance sheet assets side. 17. The balance on a firm's creditors control account at the end of an accounting period should equal ..... A) The total amount which the finn paid to its creditors during the period. B) The firm's total purchases for the period. C) The total of its list of creditors outstanding at the end of the period. D) The cost of the firm's sales for the period. Show Answer Correct Answer: C) The total of its list of creditors outstanding at the end of the period. 18. Which of the following is a primary users of final accounts A) Employees. B) Existing investors. C) Customers. D) Suppliers. Show Answer Correct Answer: B) Existing investors. 19. An expenditure that only provides economic benefits in the period in which the expenditure occurs is called..... A) Capital Expenditures. B) Revenue Expenditures. C) Maintenance. D) Replacement. Show Answer Correct Answer: B) Revenue Expenditures. 20. The final step in the accounting cycle is to prepare: A) Closing entries. B) Financial statement. C) A post-closing trial balance. D) Adjusting entries. Show Answer Correct Answer: C) A post-closing trial balance. ← 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