This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 22 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The cost of goods sold on hire purchase is transferred to A) Sales a/c. B) Purchase a/c. C) Hire purchase a/c. D) Instalment a/c. Show Answer Correct Answer: A) Sales a/c. 2. All of the following are transaction types that occur during the life of an asset except ..... A) Acquisition. B) Depreciation. C) Allocation. D) Retirement. Show Answer Correct Answer: C) Allocation. 3. Which statement in relation to a cash settled share-based payment transaction is true? A) The fair value of the liability shall be remeasured at the end of each reporting period. B) The fair value of the liability shall be remeasured at the date of settlement. C) The fair value of the liability shall be remeasured at every year-end and at the date of settlement. D) The fair value of the liability shall be remeasured at the date of grant. Show Answer Correct Answer: C) The fair value of the liability shall be remeasured at every year-end and at the date of settlement. 4. The amount by which the minimum rent exceeds the actual Royalty is known as Excess Workings. A) True. B) False. Show Answer Correct Answer: B) False. 5. A suspense account has a balance of $ 450 debit. What has caused this balance in the suspense account? A) Motor expenses of $ 225, correctly entered in cash book, & posted to motor expenses as a credit. B) Motor expenses of $ 225, entered in cash book as a receipt & posted to motor expenses as credit. C) Motor expenses of $ 450, correctly entered in cash book, & posted to motor vehicles as a debit. D) Motor expenses of $ 675, entered in the cash book as a credit of $ 225 and posted to motor expenses as $ 225 debit. Show Answer Correct Answer: A) Motor expenses of $ 225, correctly entered in cash book, & posted to motor expenses as a credit. 6. When bonds are sold, the gain or loss on sale is thedifference between the: A) Sales price and the cost of the bonds. B) Net proceeds and the cost of the bonds. C) Sales price and the market value of the bonds. D) Net proceeds and the market value of the bonds. Show Answer Correct Answer: B) Net proceeds and the cost of the bonds. 7. How does double-entry accounting help in detecting errors and fraud? A) By creating confusion and making it harder to identify errors. B) By allowing for more errors to go undetected. C) By making it easier to manipulate financial records. D) By providing a cross-check for accuracy. Show Answer Correct Answer: D) By providing a cross-check for accuracy. 8. AN ENTITY SHALL DISCLOSE THE FAIR VALUE OF WHICH OF THE FOLLOWING ASSETS MEASURED AT COST LESS ANY ACCUMULATED DEPRECIATION AND ANY ACCUMULATED IMPAIRMENT LOSSES? A) BIOLOGICAL ASSETS. B) PROPERTY, PLANT AND EQUIPMENT. C) INVESTMENT PROPERTY. D) BOTH A AND C. Show Answer Correct Answer: C) INVESTMENT PROPERTY. 9. Donation to a club are A) Credited to the income and expenditure account. B) Credited to receipts and payments account. C) Debited to income and expenditure account. D) Debited to donation account. Show Answer Correct Answer: A) Credited to the income and expenditure account. 10. Types of errors Accounting A) Errors of Principle. B) Errors of Omission. C) Errors of commission. D) All the above. Show Answer Correct Answer: D) All the above. 11. Amount invested in a business is called A) Investment. B) Capital. C) Asset. D) Liability. Show Answer Correct Answer: B) Capital. 12. What accounting system matches Measurement of profit or loss, assets, liabilities and capital? A) Arithmetical checking of double-entry bookkeeping. B) FINANCIAL STATEMENTS. C) Trial balance. D) Books of prime entry. Show Answer Correct Answer: B) FINANCIAL STATEMENTS. 13. Discount received has A) Debit balance. B) Credit balance. C) Both debit and credit balance. D) None of above. Show Answer Correct Answer: B) Credit balance. 14. Revenue that is earned but not yet collected. A) Accrued Expense. B) Account Payable. C) Accrued Revenue. D) Accrued Liability. Show Answer Correct Answer: C) Accrued Revenue. 15. 'Paid Wages' here wages account will be credited. State whether the statement is A) True. B) Partially True. C) False. D) None of the above. Show Answer Correct Answer: C) False. 16. The deduction obtained if you use the terms 3/10, n/30 A) 0, 3%. B) 3%. C) 10%. D) 30%. Show Answer Correct Answer: B) 3%. 17. Subscription received by a school for organising annual function is treated as: A) Capital Receipt (i.e., Liability). B) Revenue Receipt \{i.e., Income). C) Asset. D) Earned Income. Show Answer Correct Answer: A) Capital Receipt (i.e., Liability). 18. Which of the following is increased with a credit? A) Accounts Receivable. B) Accumulated Depreciation. C) Depreciation Expense. D) Withdrawals. Show Answer Correct Answer: B) Accumulated Depreciation. 19. Major forms of organizations we studied are Proprietary firms, Partnership firms and ..... A) Cooperatives. B) Joint Stock Companies. C) NGOs. D) Public Sector Enterprises. Show Answer Correct Answer: B) Joint Stock Companies. 20. Cash discount is given A) On purchase of goods for cash. B) On sale of goods. C) On purchase of goods on credit. D) Payment receiving in cash before time. Show Answer Correct Answer: D) Payment receiving in cash before time. ← 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