This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 25 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 25 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Audit Oversight Board (AOB) is established with the mission in assisting the Securities Commission. This mission is explained[NS1] by the following statements:i. Overseeing the auditors of public interest entities. ii. Protecting the interests of investors by promoting confidence in the quality and reliability of audited financial statements of public interest entities. iii. Overseeing the accountants of public interest entities. iv. Overseeing the Financial Reporting Foundation (FRF). A) I and ii. B) Ii and iii. C) Ii and iv. D) I and iii. Show Answer Correct Answer: A) I and ii. 2. Consignee becomes consignor's debtor when the goods are: A) Shipped by the consignor. B) Received by consignee. C) Sold by consignee. D) Returned by consignee. Show Answer Correct Answer: C) Sold by consignee. 3. Joint Venture is temporary partnership. A) True. B) False. Show Answer Correct Answer: A) True. 4. What is the purpose of financial accounting? A) To provide information about the financial position and performance of an organization to external users. B) To manage the human resources department of an organization. C) To track the inventory of a company. D) To provide information about the personal finances of employees. Show Answer Correct Answer: A) To provide information about the financial position and performance of an organization to external users. 5. In a manufacturing account, prime cost comprises three cost:direct materials, direct labour and factory overhead A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 6. Accounting terms used to describe the excess of current assets over current liabilities is A) Share capital. B) Working capital. C) Subscribed capital. D) Reserved capital. Show Answer Correct Answer: B) Working capital. 7. ..... are goods or cash withdrawn by the owner of a business at interval for his own use A) Contra entries. B) Capital. C) Income. D) Drawing. Show Answer Correct Answer: D) Drawing. 8. This type of accounting analyses financial information in detail to work out the costs of individual products A) Management Accounting. B) Financial Accounting. Show Answer Correct Answer: A) Management Accounting. 9. COGS Stands for? A) Cost Out of Goods Sold. B) Closing Opening Goods Stock. C) Cost Of Goods Sold. D) None of above. Show Answer Correct Answer: C) Cost Of Goods Sold. 10. WHICH ARE THE THREE COMMONLY USED TOOLS OF FINANCIAL STATEMENT ANALYSIS, EXCEPT A) RATIO ANALYSIS. B) FINANCIAL ANALYSIS. C) HORIZONTAL ANALYSIS. D) VERTICAL ANALYSIS. Show Answer Correct Answer: B) FINANCIAL ANALYSIS. 11. The unfavorable balance of Profit and Loss account should be: A) Added in liabilities. B) Subtracted from current assets. C) Subtracted from capital. D) Subtracted from liabilities. Show Answer Correct Answer: C) Subtracted from capital. 12. Round 15.67348 to the correct decimal place so that it deals with money. A) $ 15.7. B) $ 15.67. C) $ 15.68. D) $ 15.673. Show Answer Correct Answer: B) $ 15.67. 13. Which of the following reasons is not a reason for a company to create its own Tangible Fixed Assets? A) The acquisition price is definitely cheaper. B) Utilize idle facilities. C) Obtain a Tangible Fixed Asset with good quality. D) No other party can provide the Tangible Fixed Assets required according to the company's desired criteria. E) All are correct. Show Answer Correct Answer: A) The acquisition price is definitely cheaper. 14. New-partner pays premium for goodwill, which will be shared by old partners in their new profit-sharing ratio A) True. B) False. Show Answer Correct Answer: B) False. 15. THE PERMISSION REQUIRED FROM ..... IN THE CASE OF BILLS OF EXCHANGE A) BANK. B) DRAWER. C) DRAWEE. D) PAYEE. Show Answer Correct Answer: B) DRAWER. 16. The Accumulated Depreciation account is a contra asset account. A) True. B) False. Show Answer Correct Answer: A) True. 17. What is net worth of a business? A) Income statement. B) Balance sheet. C) Owner's equity. D) Statement. Show Answer Correct Answer: C) Owner's equity. 18. Your boss decides to purchase a luxury suite at Mudhens Stadium. This purchase provides a venue to do which of the following? A) Accomplish more office work. B) Develop business networks and foster relationships with potential clients through social vs. business environments. C) Store important record. D) Spy on your competitors. Show Answer Correct Answer: B) Develop business networks and foster relationships with potential clients through social vs. business environments. 19. This type of accounting is legally required A) Mangement Accounting. B) Financial Accounting. Show Answer Correct Answer: B) Financial Accounting. 20. Business is distinct from the owner. This concept is called ..... A) Business entity concept. B) Cost concept. C) Going concern concept. D) Money measurement concept. Show Answer Correct Answer: A) Business entity concept. ← 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