This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. On October 1, Green Company purchased P6, 000 worth of goods on terms of 2/15, n/30. Freight of P500 was prepaid by the seller under the term FOB shipping point, goods worth P1, 000 were returned and the account was paid October 3. How much discount was received from the seller? A) P 100. B) P 110. C) P 90. D) P 120. Show Answer Correct Answer: A) P 100. 2. Only current year income and expenses are recorded in Income and Expenditure account A) True. B) False. Show Answer Correct Answer: A) True. 3. Failure to make an adjusting entry to recognize accrued salaries payable would cause which of the following? A) An understatement of expenses, liabilities, and stockholders' equity. B) An understatement of expenses and liabilities and an overstatement of stockholders' equity. C) An overstatement of assets and stockholders' equity. D) An overstatement of assets and liabilities. Show Answer Correct Answer: B) An understatement of expenses and liabilities and an overstatement of stockholders' equity. 4. Expenses incurred by branch out of petty cash balance are debited to branch account by the head office. A) True. B) False. Show Answer Correct Answer: B) False. 5. Object to keep fixed assets is A) Long-term use. B) Resale. C) Liquidity. D) All of the above. Show Answer Correct Answer: A) Long-term use. 6. Internal stakeholders can use final accounts to manage the business and to aid strategic decision-making. A) YES. B) NO. Show Answer Correct Answer: A) YES. 7. Generally incomplete records are maintained by A) Trader. B) Society. C) Company. D) Government. Show Answer Correct Answer: A) Trader. 8. Liability of partners is unlimited in case of general partnership whereas it is limited incase of Limited Liability Partnership. A) True. B) False. C) None of the above. D) None of above. Show Answer Correct Answer: A) True. 9. If one aspect of a transaction is not recorded, which accounting concept is violated? A) Cost. B) Business Entity. C) Matching. D) Dual Aspect. Show Answer Correct Answer: D) Dual Aspect. 10. When the capitalization of profits method is used then the value of goodwill on the basis of future maintainable profits is more than that of on the basis of super profits. A) True. B) False. Show Answer Correct Answer: B) False. 11. Shows the change in an owner's or shareholder's equity throughout an accounting period. A) Income Statement. B) Statement of Financial Position. C) Statement of Changes in Equity. D) Trading Account. Show Answer Correct Answer: C) Statement of Changes in Equity. 12. A small neighborhood barber shop that is operated by its owner would likely be organized as a A) Corporation. B) Proprietorship. C) Partnership. D) Joint venture. Show Answer Correct Answer: B) Proprietorship. 13. What is the normal balance for assets? A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 14. What is included in the income statement in worksheet? A) Drawings and owner's equity. B) All revenues and expenses. C) All assets. D) Accumulated depreciation and account payable. Show Answer Correct Answer: B) All revenues and expenses. 15. Which is a liability? A) Taxes to be paid. B) Land. C) Office equipment. D) Buildings you own. Show Answer Correct Answer: A) Taxes to be paid. 16. Which of the following is NOT an example of a manufacturing firm? A) Grocery. B) Bakery. C) Garment factory. D) Woodworking shop. Show Answer Correct Answer: A) Grocery. 17. The receipt of cash from customers in payment of their accounts would be recorded by a: A) Debit to Cash and a credit to Accounts Payable. B) Debit to Cash and a credit to Accounts Receivable. C) Debit to Accounts Receivable and a credit to Retained Earnings. D) Debit to Accounts Payable and a credit to Cash. Show Answer Correct Answer: B) Debit to Cash and a credit to Accounts Receivable. 18. Double entries of the business buying a van with cheque A) Dr. BankCr. By. B) Dr. VanCr. Cash. C) Dr. Motor VehicleCr. Bank. D) Dr. Motor VehicleCr. Cash. Show Answer Correct Answer: C) Dr. Motor VehicleCr. Bank. 19. He is the father of modern accounting. Identify the person? A) Luca Pacioli. B) Geometry. C) Angelo Lorenzo. D) Michelle Ballack. Show Answer Correct Answer: A) Luca Pacioli. 20. Complete the following statement.Assets= ..... A) Owners equity +liabilities. B) Bank + Owners equity. C) Liabilities +Bank. D) None of above. Show Answer Correct Answer: A) Owners equity +liabilities. ← 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