This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Received Rs 990 in full and final settlement of Rs 1000 rupees from Manoj.The difference of Rs 10 will be posted to A) Debit side of the manuj account. B) Debit side of discount account. C) Credit side of discount account. D) Debit side of cash account. Show Answer Correct Answer: B) Debit side of discount account. 2. Merits of accounting are A) Helps the management in planning and decision making process. B) Helps in determining the profitability of the concern. C) Helps in understanding the financial health of the concern. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Profit should be accounted for only when it is actually realised. A) Matching Concept. B) Dual Aspect. C) Money Measurement. D) Realisation Concept. Show Answer Correct Answer: D) Realisation Concept. 4. JJ Company owns a building. Which of the following statements regarding depreciation as used by accountants is false? A) As depreciation is recorded, stockholders' equity is reduced. B) Depreciation is an estimated expense to be recorded over the buildings estimated useful life. C) As depreciation is recorded, the net book value of the asset is reduced. D) As the value of the building decreases over time, it "depreciates". Show Answer Correct Answer: D) As the value of the building decreases over time, it "depreciates". 5. Who is the guardian of the country's banking system? A) Lok Sabha. B) Central government. C) State Bank of India. D) Reserve Bank of India. Show Answer Correct Answer: D) Reserve Bank of India. 6. Which accounting reports on the past events? A) Managerial Accounting. B) Financial Accounting. Show Answer Correct Answer: B) Financial Accounting. 7. Which of the following are the types of financial statements 1.Statement of Cash Flow2.Statement of Profit or loss3.Statement of Financial Position4. Trial balance A) 1, 2, 3 and 4. B) 1, 2 and 3. C) 2 and 4. D) 2, 3 and 4. Show Answer Correct Answer: B) 1, 2 and 3. 8. When the call money is received by the company, ..... account is credited A) Share Call Account. B) Cash Account. C) Share Capital. D) None of the Above. Show Answer Correct Answer: A) Share Call Account. 9. A plot of land containing mining deposits was purchased for IDR 200, 000, 000. The estimated content is 2, 000, 000 tons. So the depletion rate is..... A) 200/ton. B) 200/kg. C) 2000/ton. D) 20/ton. E) 20000/ton. Show Answer Correct Answer: A) 200/ton. 10. Who issues IFRS/IAS? A) IASB. B) IFRS Foundation. C) IFRS Interpretation Committee. D) IFRS Advisory Council. Show Answer Correct Answer: A) IASB. 11. Closing capital =? A) Opening capital+ Net profit+Additional capital-drawings. B) Opening capital +net profit-drawings. C) Opening inventory+purchase-closing inventory. D) Non of the above. Show Answer Correct Answer: A) Opening capital+ Net profit+Additional capital-drawings. 12. ..... is a part of the profit distributable to shareholders of an organization A) Premium. B) Dividend. C) Shares. D) Profit. Show Answer Correct Answer: B) Dividend. 13. According to Nominal category of Golden rules, Debit includes A) All incomes and gains. B) All expenses and losses. Show Answer Correct Answer: B) All expenses and losses. 14. Which of the following expenses would vary with the amount of goods produced? A) Wages paid to machine operators. B) Works manager's salary. C) Rent of factory production units. D) Insurance premium on factory buildings. Show Answer Correct Answer: A) Wages paid to machine operators. 15. For expenses incurred by consignor, this account is debited. A) Consignor. B) Consignment. C) Consignee. D) Bank. Show Answer Correct Answer: B) Consignment. 16. A contra asset account has what type of balance? A) Debit. B) Credit. C) Contra. D) All of the above. Show Answer Correct Answer: B) Credit. 17. George and Ringo met at law school and decide to start a small law practice after graduation. They agree to split revenues and expenses evenly. The most common form of business organization for a business such as this would be A) Proprietorship. B) Partnership. C) Corporation. D) Joint venture. Show Answer Correct Answer: B) Partnership. 18. A company receives $ 500 of cash as an additional investment in the company by its owner, Mary Smith. The company's Cash account is increased and Mary Smith, Capital is increased.Should the $ 500 entry to the Cash account be a debit? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 19. What is the minimum and maximum number of members in a public company? A) Minimum-7Maximum-No Limit. B) Minimum-2Maximum-200. C) Minimum 1Maximum-100. D) Minimum-10Maximum-No Limit. Show Answer Correct Answer: A) Minimum-7Maximum-No Limit. 20. Goods worth Rs 7, 000 given away as charity will be recorded in A) Sales Book. B) Purchase book. C) Cash Book. D) Journal Proper. Show Answer Correct Answer: D) Journal Proper. ← PreviousNext →Related QuizzesAccounting QuizzesFinancial Accounting Quiz 1Financial Accounting Quiz 2Financial Accounting Quiz 3Financial Accounting Quiz 5Financial Accounting Quiz 6Financial Accounting Quiz 7Financial Accounting Quiz 8Financial Accounting Quiz 9Financial Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books