This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 24 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How do you calculate Cost of Raw Materials Consumed? A) Opening Inventory of Finished Goods + Purchases-Closing Inventory of Finished Goods. B) Closing Inventory of Raw Materials + Purchases-Opening Inventory of Raw Materials. C) Opening Inventory of Raw Materials + Purchases-Closing Inventory of Raw Materials. D) Purchases-Carriage In + Purchase Returns. Show Answer Correct Answer: C) Opening Inventory of Raw Materials + Purchases-Closing Inventory of Raw Materials. 2. If Rita sells goods for cash, it will be recorded in A) Sales book. B) Purchases book. C) Cash book. D) Journal proper. Show Answer Correct Answer: C) Cash book. 3. What is the primary objective of the Companies Act 2016 in Malaysia as it relates to financial reporting? A) To simplify tax regulations for companies. B) To regulate the cryptocurrency market. C) To promote international trade agreements. D) To enhance corporate governance and financial transparency. Show Answer Correct Answer: D) To enhance corporate governance and financial transparency. 4. Mr. Kan brought cash to invest in the business of 100, 000 baht. It can be recorded in the account by A) Debit Cash 100, 000 baht Credit Capital-Mr. Kan 100, 000 baht. B) Debit Capital 100, 000 baht Credit Cash 100, 000 baht. C) Debit Cash 100, 000 baht Credit Debt 100, 000 baht. D) Debit Cash 100, 000 baht Credit Withdrawal for personal use 100, 000 baht. Show Answer Correct Answer: A) Debit Cash 100, 000 baht Credit Capital-Mr. Kan 100, 000 baht. 5. What two accounts are impacted when a company issues (sells) stock? A) Credit Cash (increase), Debit Common Stock (decrease). B) Debit Cash (increase), Credit Common Stock (decrease). C) Debit Cash (decrease), Credit Common Stock (increase). D) Credit Cash (decrease), Debit Common Stock (increase). Show Answer Correct Answer: B) Debit Cash (increase), Credit Common Stock (decrease). 6. What is the amount of prepayment for rates from October to December 2022? A) £1, 150. B) £2, 300. C) £575. D) £3, 450. Show Answer Correct Answer: A) £1, 150. 7. A company using the accrual method of accounting performed services on account in August. The services were for $ 2, 000.The customer will pay in the next month.Assuming that the company prepares monthly income statements, what will be the account debited for $ 2, 000 in August? A) Cash. B) Accounts Receivable. C) Service Revenue. D) None of above. Show Answer Correct Answer: B) Accounts Receivable. 8. Management accounting is concerned with both information and events from the past and in the future. Management account attempts to focus more on future events. A) True. B) False. Show Answer Correct Answer: A) True. 9. Find the term to match the meaning below:Total value of goods returned to the business from customers (e.g. because the goods sold were faulty) A) Sales returns. B) Purchase returns. C) Carriage in. D) Warehouse expenses. Show Answer Correct Answer: A) Sales returns. 10. A, B and C were partner in a firm sharing Profit in the ratio of 3:2:1 during the year the firm earned profit of Rs. 84, 000.Calculate the amount of Profit or Loss transferred to the capital A/c of B. A) Loss Rs. 87, 000. B) Profit Rs.28, 000. C) Profit Rs. 87, 000. D) Profit Rs.14, 000. Show Answer Correct Answer: B) Profit Rs.28, 000. 11. Which of the following is a credit item in an income and expenditure account? A) Electricity. B) Donation. C) Stationery. D) Bar suppliers. Show Answer Correct Answer: B) Donation. 12. The following is a journal to record depreciation of fixed assets:..... A) Asset depreciation expense (D); Accumulated depreciation of assets (K). B) Accumulated depreciation of assets(D); Asset depreciation expense (K). C) Asset depreciation expense (D); Amortization expense (K). D) Amortization expense (D); Accumulated depreciation of assets (K). E) Amortization expense (D); Patent rights (K). Show Answer Correct Answer: A) Asset depreciation expense (D); Accumulated depreciation of assets (K). 13. A person who cannot pay his debts is called A) Creditor. B) Debtor. C) Insolvent. D) None. Show Answer Correct Answer: C) Insolvent. 14. Profit and loss account reveals financial position of an organization A) True. B) False. Show Answer Correct Answer: B) False. 15. Book keeping is mainly concerned with the recording of financial data relating to the ..... in significant and orderly manner A) Business. B) Personal. C) Company. D) Monetary. Show Answer Correct Answer: A) Business. 16. Accounting is an information system that provides reports to users about the economic activities and condition of a business. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. Who is the world's richest men? A) Jeff Bezos. B) Elon Musk. C) Bernard Arnault. D) Steve Jobs. Show Answer Correct Answer: C) Bernard Arnault. 18. Which element is not a part of the typical company code data in general ledger accounts? A) Tax-related data. B) Field status groups. C) Line item display. D) Reconciliation account data. E) None of the above. Show Answer Correct Answer: E) None of the above. 19. Retiring a bill under rebate means payment of the bill before due date. A) True. B) False. Show Answer Correct Answer: A) True. 20. Within accounts receivable accounting, when a payment is made the bank account is debited and the appropriate customer account is credited. A) True. B) False. Show Answer Correct Answer: A) True. ← 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