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Financial Accounting Quiz 31 (20 MCQs)

Quiz Instructions

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1. The professional organization that CPAs may join. The organization creates and administers the CPA exam and nurtures CPA professional practice.
2. The owner of a business paid his private telephone bill from the business bank account. The amount was debited to the drawings account. Which concept was applied?
3. Treatment of Advance income in the financial statements
4. During a period of consistently rising prices, the method of inventory costing that will result in reporting the greatest cost of merchandise sold is:
5. In accounting, consignment signifies
6. Financial accounting is concerned primarily with:
7. At the beginning of the current year, Donna Company had $ 1, 000 of supplies on hand. During the current year, the company purchased supplies amounting to $ 6, 400 (paid for in cash and debited to Supplies). At the end of the current year, a count of supplies reflected $ 2, 000. The adjusting entry Donna Company would record at the end of the current year to adjust the Supplies account would include a
8. An income statement reports information for a specific date indicating the financial progress of a business in earning a net income or a net loss.
9. Keeping ..... accurate and up to date is important for the smooth running of the business.
10. After recording interest and amortization, an entity converted P5, 000, 000 of 12% convertible bonds into 50, 000 shares of P50 par value. On the conversion date, the carrying amount of the bonds payable was P6, 000, 000, the market value of the bonds was P6, 500, 000, and the share was publicly trading at P150. The entity incurred P100, 000 in connection with the conversion. When the bonds were originally issued, the equity component was recorded at P1, 500, 000. What amount of share premium should be recorded as a result of the conversion?
11. A plant was purchased on January 01, 200X at a cost of $ 150, 000 and has been depreciated at a rate of 2% per annum, on the straight-line basis. 20 years later, the plant is professionally revalued at $ 120, 000. 5 years later from the first revaluation, the plant is revalued at $ 20, 000. What should be recorded in relation to the second revaluation?
12. Independent Branches maintain independent accounting records.
13. Which of the following is used to implement multiple ledgers and use each ledger for different purposes?
14. At the end of the accounting year Depreciation Expense is closed to .....
15. In a video store, a DVD that sells for $ 15 is marked 10% off. What is the amount of discount?
16. What is the normal balance for equity?
17. Where in the cashflow statement would you find depreciation expense?
18. Provide ..... with databases on various variables to conduct of taxation, regulation of the economy and enhancement of economic efficiency and other social goals.
19. 9 Depreciation is generated due to
20. Sam bought an $ 85.00 jacket for 40% off of the regular price. How much did he pay for the jacket?
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