This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When closing the withdrawals account A) The owner's capital should be debited. B) The income summary account should be debited. C) The owner's capital account should be credited. D) A liability account should be credited. E) The income summary account should be credited. Show Answer Correct Answer: A) The owner's capital should be debited. 2. A/c to be charged when proprietor withdraws funds A) Capital. B) Cash. C) Bank. D) Drawings. Show Answer Correct Answer: D) Drawings. 3. Purchase Return Book is used to record A) Return of goods purchase in cash. B) Return of goods purchase on credit. C) None of the above. D) None of above. Show Answer Correct Answer: B) Return of goods purchase on credit. 4. To increase the balance in the following accounts, would you debit the account or would you credit the account?Service Revenue A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 5. Accounting doesn't record non-financial transactions because of A) Entity concept. B) Accrual concept. C) Measurement concept. D) None of above. Show Answer Correct Answer: C) Measurement concept. 6. What is the focus of managerial accounting? A) Future planning and decision-making. B) Managing risks within a business. C) Presenting information to internal managers. D) Reporting on past transactions and events. Show Answer Correct Answer: A) Future planning and decision-making. 7. A current asset is generally converted into cash within a year or operating period A) True. B) False. Show Answer Correct Answer: A) True. 8. What is the periodical statement sent by the consignee to the consignor? A) Performa Invoice. B) Account sales. C) Both. D) None of the above. Show Answer Correct Answer: B) Account sales. 9. Paid wages by bank transfer what is the double entry A) Dr wagesCr Cash. B) Dr BankCr wages. C) Dr WagesCr Bank. D) Dr CashCr Wages. Show Answer Correct Answer: C) Dr WagesCr Bank. 10. Subscription received in advance is A) An Income. B) An Expense. C) An Asset. D) A liability. Show Answer Correct Answer: D) A liability. 11. The reason a company discontinues fixed assets is because of the following, except..... A) Bored. B) Damaged. C) For sale. D) Change plus. E) Destroyed. Show Answer Correct Answer: A) Bored. 12. Sales & Purchase book doesn't record A) Credit Sales. B) Credit Purchase. C) Credit Sales & Purchase. D) Cash Sales & Purchase. Show Answer Correct Answer: D) Cash Sales & Purchase. 13. The equipment bought at a price of Php 450, 000 has an economic life of 5 years and a salvage value of Php 50, 000. The cost of money is 12% per year. Compute the first year depreciation using Declining Balance Method NOTES:SV = FC (1-K)*n50, 000 = 450, 000 (1-K)*5K = 0.356 A) 50.000. B) 250.000. C) 450.000. D) 160.200. Show Answer Correct Answer: D) 160.200. 14. Current liabilities A) Are to be settled within the shorter of one year or the operating cycle. B) Are closed at the end of the accounting period to current assets. C) Are due to be settled after one year or the operating cycle. D) Are listed in order of liquidity. E) Are listed in order in which they are to be paid, with the first one listed to be paid first. Show Answer Correct Answer: E) Are listed in order in which they are to be paid, with the first one listed to be paid first. 15. Pragmatic is a study of the behaviour of accountants and non-accountants A) True. B) False. Show Answer Correct Answer: B) False. 16. The rights of creditors that represent a legal obligation to repay an amount borrowed according to terms of the borrowing agreement. A) Assets. B) Liabilities. C) Revenue. D) Expenses. Show Answer Correct Answer: B) Liabilities. 17. Unearned revenue is a liability that is created when a customer pays for a service or product in advance. A) True. B) False. Show Answer Correct Answer: A) True. 18. Which of the following is required when calculating prime cost? A) Office wages. B) Manufacturing wages. C) Depreciation of machinery. D) Factory water charges. Show Answer Correct Answer: B) Manufacturing wages. 19. Which of the following elements of a manufacturing account matches the definition below:The raw materials actually used to manufacture the product (e.g. cloth used to produce shirts, flour used to produce bread) A) Direct materials. B) Direct wages. C) Indirect materials. D) Direct expenses. Show Answer Correct Answer: A) Direct materials. 20. The following are some reasons why companies choose business combination over internal expansion except: A) Cost saving. B) Increasing competition. C) Enter a new geographic region. D) Reduce competition. Show Answer Correct Answer: B) Increasing competition. ← 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