This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 40 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 40 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following records the impact of a transaction step on financial accounting? A) Financial accounting document. B) Parallel accounting document. C) Sub-ledger. D) Subsidiary ledger. E) None of the above. Show Answer Correct Answer: A) Financial accounting document. 2. It helps in calculating tax on business income calculated for a particular time period. A) Dual Aspect Concept. B) Revenue Recognition Concept. C) Accounting Period Concept. D) Going Concern Concept. Show Answer Correct Answer: C) Accounting Period Concept. 3. Ram & Shyam are partners with the capital of Rs.25, 000 and Rs.15, 000 respectively. Interest payable on capital is 10% p.a. Find the profit to be shared by the partners if profit earned by the firm before interest charges is Rs.2, 400. A) Rs.2500 and RS.1500. B) Rs.1500 and RS.900. C) Rs.1200 and RS.1200. D) None of the above. Show Answer Correct Answer: B) Rs.1500 and RS.900. 4. A trading account is prepared to disclose the A) Appropriation account. B) Gross profit or loss for the year. C) Accumulated fund for the year. D) Gross profit on manufacturing. Show Answer Correct Answer: B) Gross profit or loss for the year. 5. Ledgers come after Journal Entries True or False? A) True. B) False. Show Answer Correct Answer: A) True. 6. A cashbook which records both cash and bank transactions is called a ..... cashbook. A) Single column. B) Flex. C) Double column. D) Hyper. Show Answer Correct Answer: C) Double column. 7. Legal form of business that faces financing problems because of the enterprise's limited ability to raise capital. A) Corporation. B) Chua's Company. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: C) Sole Proprietorship. 8. Generally the minimum rent is ..... when there is strike A) Fixed. B) Variable. C) No amount. D) Partially fixed and variable. Show Answer Correct Answer: B) Variable. 9. Which of the following is the example of internal users A) Government. B) Investors. C) Creditors. D) Employees. Show Answer Correct Answer: D) Employees. 10. Journal entry will be made on returning the amount of rejected applications- A) Share Application A/c Dr.To Share Capital A/c. B) Bank A/c Dr.To Share Application A/c. C) Share Application A/c Dr.To Bank A/c. D) Share Capital A/c Dr. To Share Application A/c. Show Answer Correct Answer: C) Share Application A/c Dr.To Bank A/c. 11. Examples of Liabilities include which of the following: A) Loans, credit cards, and real property. B) Loans, mortgage, and credit cards. C) Loans, Art collection, and savings account. D) Mortgage, credit card, and real property. Show Answer Correct Answer: B) Loans, mortgage, and credit cards. 12. Whcih of the following consist of only assets? A) Car, Bank Loan, Computer. B) Creditor, Debtors, Cash at Bank. C) Debtors. Cash at bank, Building. D) Cash in hand, cash at bank, creditors. Show Answer Correct Answer: C) Debtors. Cash at bank, Building. 13. An outstanding check is one that has been issued but not yet reported on a bank statement. A) True. B) False. Show Answer Correct Answer: A) True. 14. What is the main objective of financial accounting? A) To assist management in decision-making. B) To create internal reports for managers. C) To allocate resources within a business. D) To report on a business's financial health to external parties. Show Answer Correct Answer: D) To report on a business's financial health to external parties. 15. IAS 10 Events after the reporting period regulates the extent to which events after the reporting period should be reflected in financial statements. Which one of the following lists of such events consists only of items that, according to IAS 10, should normally be classified as non-adjusting? A) Insolvency of an account receivable which was outstanding at the end of the reporting period, issue of shares or loan notes, an acquisition of another company. B) Issue of shares or loan notes, changes in foreign exchange rates, major purchases of non-current assets. C) An acquisition of another company, destruction of a major non-current asset by fire, discovery of fraud or error which shows that the financial statements were incorrect. D) Sale of inventory which gives evidence about its value at the end of the reporting period, issue of shares or loan notes, destruction of a major non-current asset by fire. Show Answer Correct Answer: B) Issue of shares or loan notes, changes in foreign exchange rates, major purchases of non-current assets. 16. Revenues earned during an accounting period are compared with the expenditure incurred during the same period for earning that revenue is explained by ..... concept A) Objectivity. B) Matching. C) Dual Aspect. D) Accounting Cost. Show Answer Correct Answer: B) Matching. 17. Choclate Chews Company gathered the following reconciling information in preparing its August bank reconciliation:Cash balance per books, 8/31 $ 15, 900Deposits in transit 900Notes receivable and interest collected by bank 8, 400Bank charge for check printing 120Outstanding checks 12, 000NSF check 1, 200The adjusted cash balance per books on August 31 is A) $ 10, 980. B) $ 11, 880. C) $ 22, 980. D) $ 23, 880. Show Answer Correct Answer: C) $ 22, 980. 18. The amount a business earns by selling goods or services to its customers. A) Expense. B) Revenue. C) Asset. D) Liability. Show Answer Correct Answer: B) Revenue. 19. Generally a Journal is divided A) Into two parts. B) Into four parts. C) Into five parts. D) Into eight parts. Show Answer Correct Answer: C) Into five parts. 20. Of Invoice is A) 1/2 of cost. B) 1/4 of cost. C) 1/5 of cost. D) None of the Above. Show Answer Correct Answer: A) 1/2 of cost. ← 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