This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 37 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 37 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The production cost is the total of: A) A. prime cost + factory overhead expenses. B) B. direct labour + direct materials + direct expenses. C) C. administrative expenses + selling expenses. D) None of the above. Show Answer Correct Answer: A) A. prime cost + factory overhead expenses. 2. Accounting information is ..... if it is capable to provide feedback. A) Reliable. B) Consistent. C) Relevant. D) Comparable. Show Answer Correct Answer: C) Relevant. 3. A company's list of all ledger accounts and the identification numbers assigned to each account. A) Journal. B) Source document. C) Chart of accounts. D) Trial balance. Show Answer Correct Answer: C) Chart of accounts. 4. Accrued income is added to ..... and it is treated as an ..... A) Income, asset. B) Income, liability. C) Income, expense. D) Expenses, asset. Show Answer Correct Answer: A) Income, asset. 5. If total expenses exceed total revenue, a net loss is reported A) True. B) False. Show Answer Correct Answer: A) True. 6. If the Matrenakan Museum, a not-for-profit organization, received a contribution of historical artifacts, it need not recognize the contribution if the artifacts are to be sold and the proceeds used to A) Support general museum activities. B) Acquire other items for collections. C) Repair existing collections. D) Purchase buildings to house collections. Show Answer Correct Answer: B) Acquire other items for collections. 7. In preparing its bank reconciliation for the month of April 2020, Leno, Inc. has available the following information.Balance per bank statement, 4/30/20 RM76, 800NSF check returned with 4/30/20 bank statement 940Deposits in transit, 4/30/20 9, 000Outstanding checks, 4/30/20 9, 300Bank service charges for April 60What should be the adjusted cash balance at April 30, 2020? A) RM75, 100. B) RM75, 800. C) RM75, 920. D) RM76, 500. Show Answer Correct Answer: D) RM76, 500. 8. The accounting equation must always be A) Balanced. B) Uneven. C) Zero. D) Equal to the square root of 5. Show Answer Correct Answer: A) Balanced. 9. The balance in the office supplies account on May 1 was $ 6, 380, supplies purchased during May were $ 4, 740, and the supplies on hand at May 31 were $ 2, 360. The amount to be used for the appropriate adjusting entry is: A) $ 4740. B) $ 8740. C) $ 8760. D) $ 13480. Show Answer Correct Answer: C) $ 8760. 10. What is a bank statement? A) A statement prepared by a bank to show business profits. B) A statement prepared by a bank and sent to a current account holder. C) A statement prepared by a business owner to show monthly bank transactions. D) A statement prepared by a business owner to show daily cash transactions. Show Answer Correct Answer: B) A statement prepared by a bank and sent to a current account holder. 11. Agreement Between Partners is Known as A) Partnership Deed. B) Articles of Partnership. C) A or B. D) None of the Above. Show Answer Correct Answer: C) A or B. 12. What type of accounting do you typically see in financial accounting? A) Cash. B) Accrual. C) Magic. D) Tax. Show Answer Correct Answer: B) Accrual. 13. Which item is not a commercial transaction? A) Buy a computer for cash. B) Pay off debt. C) Borrow money from the bank. D) Product demo. Show Answer Correct Answer: D) Product demo. 14. Which of the following business organization can issue their shares to general public? A) Private limited Company. B) Limited liability Partnership. C) Partnership firm. D) Public Limited Company. Show Answer Correct Answer: D) Public Limited Company. 15. Item 19 refers to the following:Factory workers' wages-$ 2 250Direct materials-$ 3 200Factory lighting-$ 550Factory manager's salary-$ 2 400Indirect materials-$ 625 What is the total value of direct expenses? A) $ 3 200. B) $ 5 200. C) $ 5 450. D) $ 9 025. Show Answer Correct Answer: C) $ 5 450. 16. Which is not a limitation of financial accounting?A. Inadequate information to fix up the price of products manufacturedB. Lack of data for comparison of cost of operation of the firm with other firms in the industryC. The data available is historical in natureD. Complies with the various legal requirements A) Inadequate information to fix up the price of products manufactured. B) Lack of data for comparison of cost of operation of the firm with other firms in the industry. C) The data available is historical in nature. D) Complies with the various legal requirements. Show Answer Correct Answer: D) Complies with the various legal requirements. 17. What portion of the subsidiary stockholders' equity account balances should be eliminated in preparing the consolidation balance sheet? A) Common stock. B) Additional paid in capital. C) Retained Earnings. D) All of the balances are eliminated. Show Answer Correct Answer: D) All of the balances are eliminated. 18. Assets are monies the company earns by selling its products and services. A) True. B) False. Show Answer Correct Answer: B) False. 19. Who is often referred to as the "Father of Nigerian Accountancy" and is recognized as a pioneering figure in the accounting profession in Nigeria? A) Ngozi Okonjo-Iweala. B) Olusegun Obasanjo. C) Akintola Williams. D) Where is Dangote?. Show Answer Correct Answer: C) Akintola Williams. 20. 1) Trial Balance. 2) Journal entries. 3) Financial statement. 4) Ledger account.Choose the correct order. A) 1-3-4-2. B) 2-4-1-3. C) 2-1-4-3. D) 4-2-1-3. Show Answer Correct Answer: B) 2-4-1-3. ← 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