This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. On November 9, 20x1, Entity G received $ 1, 200 from a subscriber to a magazine issued by the entity. Each issue of the magazine is published and sent to subscribers on the first day of each month. Prepare journal entries on the following dates:December 1, 20x1 A) Unearned Revenue (D) 100 Revenue (K) 100. B) Unearned Service Revenue (D) 1200Service Revenue (K) 1200. C) Unearned Service Revenue (D) 100Cash (K) 100. D) Unearned Service Revenue (D) 1200Cash (K) 1200. Show Answer Correct Answer: A) Unearned Revenue (D) 100 Revenue (K) 100. 2. If a bank agrees to lend a certain amount of money to a company using a bill of exchange that has been signed and has a maturity date, then the correct journal entry is..... A) Cash (debit) to Current liabilities (credit). B) Current Liabilities (debit) to Cash (credit). C) Kas (debit) pada Wesel bayar (kredit). D) Wesel pay (debit) pada Kas (kredit). Show Answer Correct Answer: C) Kas (debit) pada Wesel bayar (kredit). 3. Which of the following could be a journal entry that increases equity for the Walt Disney Company? A) Dr W. Disney WithdrawlsCr Cash. B) Db Cash Cr Service Revenue. C) Db Salaries ExpenseCr Salaries Payable. D) Db EquipmentCr Cash. Show Answer Correct Answer: B) Db Cash Cr Service Revenue. 4. Which of the following may be used to calculate the cost of production? A) Prime cost + factory overheads-opening work in progress + closing work in progress. B) ....Prime cost-factory overheads-opening work in progress + closing work in progress. C) Prime cost + factory overheads-opening work in progress-closing work in progress. D) Prime cost + factory overheads + opening work in progress-closing work in progress. Show Answer Correct Answer: D) Prime cost + factory overheads + opening work in progress-closing work in progress. 5. The act of buying an asset without having to make full payment in the immediate future is known as: A) Hire Purchase. B) Finance lease. C) Operating lease. D) Sale and lease back. Show Answer Correct Answer: A) Hire Purchase. 6. A summary of the revenue and expenses for a specific period of time, such as a month or a year. Shows the Net Income of a business. A) Statement of Cash Flows. B) Balance Sheet. C) Income Statement. D) Retained Earnings Statement. Show Answer Correct Answer: C) Income Statement. 7. Assets that are kept for less than a year is classified as: A) Fixed assets. B) Non-current assets. C) Current assets. D) Liabilities. Show Answer Correct Answer: C) Current assets. 8. Income earned in advance A) Liability. B) Asset. C) None. D) None of above. Show Answer Correct Answer: A) Liability. 9. Which should not be included in the acquisition cost of an asset. A) Taxes paid at time of purchase. B) Transportation charges. C) Interest paid on the loan to purchase the asset. D) Installation charges. Show Answer Correct Answer: C) Interest paid on the loan to purchase the asset. 10. Principle that assumes the business is in business for the long haul and is not expected to be interrupted or to close down in the short run. A) Principle of Consistency. B) Principle of Continuity. C) Principle of Permanence of Methods. D) Principle of Periodicity. Show Answer Correct Answer: B) Principle of Continuity. 11. Which of the following are assets? A) Buildings you own. B) Land. C) Office equipment. D) All of the answers are correct. Show Answer Correct Answer: D) All of the answers are correct. 12. Define the term 'depreciation' in the context of financial accounting. A) The process of acquiring a new asset for a business. B) Allocation of the cost of a tangible asset over its useful life. C) The increase in value of an asset over time. D) Selling an asset at a higher price than its original cost. Show Answer Correct Answer: B) Allocation of the cost of a tangible asset over its useful life. 13. Is gross salary before or after deductions? A) Before. B) After. C) During. D) None of the above. Show Answer Correct Answer: A) Before. 14. Pryor Company receives net proceeds of $ 42, 000 on the sale of stock investments that cost $ 39, 500. This transaction will result in reporting in the income statement a: A) Loss of $ 2, 500 under "Other expenses and losses.". B) Loss of $ 2, 500 under "Operating expenses.". C) Gain of $ 2, 500 under "Other revenues and gains.". D) Gain of $ 2, 500 under "Operating revenues.". Show Answer Correct Answer: C) Gain of $ 2, 500 under "Other revenues and gains.". 15. Journal Proper records A) All transactions. B) Only Credit Transaction. C) Only Cash Transaction. D) All the transaction not recorded in subsidiary book. Show Answer Correct Answer: D) All the transaction not recorded in subsidiary book. 16. Inventory recording system by carrying out stock taking at the end of each period A) Periodic System. B) Perpetual System. C) Imprest System. D) Fluctuative System. Show Answer Correct Answer: A) Periodic System. 17. Purchased for meeting consumption amounting to Rp. 300, 000.00 The journal to record the above transactions using the variable funds method is..... A) Consumption expenses IDR 300, 000 Petty Cash IDR 300, 000. B) Consumption expenses IDR 300, 000 Cash IDR 300, 000. C) Not journaled. D) Consumption expenses IDR 300, 000 Bank cash IDR 300, 000. Show Answer Correct Answer: A) Consumption expenses IDR 300, 000 Petty Cash IDR 300, 000. 18. Financial accounting reports are produced to meet the needs of: A) Investors and employees of the enterprise. B) Investors and lending people/institutions. C) Corporate employees and lending people/institutions. D) Investors and customers. Show Answer Correct Answer: B) Investors and lending people/institutions. 19. On October 1, 2020, the $ 12, 000 premium on a one-year insurance policy for the building was paid and recorded as Prepaid Insurance Expense. On December 31, 2020 (end of the accounting period), what adjusting entry is needed? A) Insurance expense (+E) 2, 000 Prepaid insurance expense (-A) 2, 000. B) Insurance expense (+E) 3, 000 Prepaid insurance expense (-A) 3, 000. C) Prepaid insurance expense (+A) 3, 000 Insurance expense (-E) 3, 000. D) Prepaid insurance expense (+A) 9, 000 Insurance expense (-E) 9, 000. Show Answer Correct Answer: B) Insurance expense (+E) 3, 000 Prepaid insurance expense (-A) 3, 000. 20. A consignee is paid del-credere commission for bearing the risk of bad debts on account of credit sales made by him. 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