This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which branch of accounting is more valuable for making decisions about the future? A) Tax accounting. B) Financial accounting. C) Audit. D) Managerial accounting. Show Answer Correct Answer: D) Managerial accounting. 2. Journal Entry to record-Goodwill being created / raised in the books- A) Goodwill DebitOld Partner's Capital Accounts Credit. B) Goodwill DebitExisting Partner's Capital Accounts Credit. C) Old Partner's Capital Accounts DebitGoodwill Credit. D) Existing Partner's Capital Accounts DebitGoodwill Credit. Show Answer Correct Answer: A) Goodwill DebitOld Partner's Capital Accounts Credit. 3. Accountants who provide audit and tax consulting services A) Internal Accountant. B) Public Accountant. C) Educator Accountant. D) Government Accountant. Show Answer Correct Answer: B) Public Accountant. 4. Discuss the concept of inventory valuation methods in accounting. A) There are several inventory valuation methods in accounting, including FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost method. B) Average selling price method. C) Specific Identification method. D) FIFO (First In, Last Out). Show Answer Correct Answer: A) There are several inventory valuation methods in accounting, including FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost method. 5. What is the advantage of a bank reconciliation statement? A) To record daily cash transactions. B) To calculate business profits. C) To prepare financial statements for the business. D) To detect errors or mistakes made by the business and the bank. Show Answer Correct Answer: D) To detect errors or mistakes made by the business and the bank. 6. When the hire purchaser makes default in paying the instalment the hire vendor has A) The right to take repossession of the asset. B) No right to take repossession. C) The option to reposses the assets. D) He has to approach the court. Show Answer Correct Answer: A) The right to take repossession of the asset. 7. Fixed assets are recorded at cost less depreciation value due to the concept of ..... A) BUSINESS ENTITY CONCEPT. B) GOING CONCERN CONCEPT. C) MONETARY UNIT CONCEPT. D) ACCOUNTING PERIOD CONCEPT. Show Answer Correct Answer: B) GOING CONCERN CONCEPT. 8. (g) ..... :A document sent by a supplier to a customer in respect of goods returned or overpayment made by customer. It is a negative invoice. A) Debit note. B) Credit note. C) Goods received note (GRN). D) Goods dispatched (delivery) note (GDN). E) Statement. Show Answer Correct Answer: B) Credit note. 9. Which is a current liability? A) 2 year loan. B) Trade accounts payable. C) Long term loan. D) Investment. Show Answer Correct Answer: B) Trade accounts payable. 10. This type of accounting records historic transactions A) Management Accounting. B) Financial Accounting. Show Answer Correct Answer: B) Financial Accounting. 11. What will usually cause an asset account to increase? A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 12. The basic elements of financial statements are classified into how many groups by the IASB? A) 2. B) 3. C) 4. D) 5. Show Answer Correct Answer: A) 2. 13. ..... and ..... are the two methods of preparing trading, profit and loss account A) Vertical and horizontal. B) Vertical and parallel. C) T and vertical. D) T and horizontal. Show Answer Correct Answer: C) T and vertical. 14. All taxes can be divided into how many basic types? A) 5. B) 2. C) 3. D) 10. Show Answer Correct Answer: C) 3. 15. The excess of expense over income is called Profit. A) True. B) False. Show Answer Correct Answer: B) False. 16. Calculate the trading stock deficit in 2022. (Question 1) A) 81000 + 150-79100 = 2050. B) 81000-150 + 79100 = 2050. C) 81000 x 150 / 79100 = 2050. D) 81000 / 150 + 79100 = 2050. Show Answer Correct Answer: A) 81000 + 150-79100 = 2050. 17. Which statement is incorrect regarding the Professional Regulatory Board of Accountancy (BOA)? A) It is under the supervision and administrative control of the Professional Regulation Commission. B) It is composed of a chairman and six (6) members appointed by the President of the Philippines. C) The Chairman and members of the BOA shall hold office for a term of three (3) years. D) No person shall serve in the BOA for more than six years. Show Answer Correct Answer: D) No person shall serve in the BOA for more than six years. 18. Rivera Company purchased merchandise from Dimatulac Suppliers for P3, 600 list price, subject to a trade discount of 25%. The goods were purchased on terms of 2/10, n/30, F.O.B. destination. Rivera paid P100 transportation costs. Rivera returned P400 (list price) of the merchandise to Dimatulac and later paid the amount due within the discount period. The amount paid is A) 2, 254. B) 2, 252. C) 2, 246. D) 2, 352. Show Answer Correct Answer: B) 2, 252. 19. Accounting for Intangible Assets are related to ..... A) AS-10. B) AS-12. C) AS-24. D) AS-26. Show Answer Correct Answer: D) AS-26. 20. (f) ..... :A document sent out by a supplier to a customer listing the transaction on the customer account, including all invoices and credit notes issued and all payments received from the customer. A) Debit advice. B) Credit advice. C) Goods received note (GRN). D) Goods dispatched (delivery) note (GDN). E) Statement. Show Answer Correct Answer: E) Statement. ← 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