This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 41 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Down payment is the payment made A) At the time of paying the first instalment. B) At the time of signing the agreement. C) At the time of paying the second instalment. D) At the time of paying the last instalment. Show Answer Correct Answer: B) At the time of signing the agreement. 2. Which of the following best describes bookkeeping? A) The interpretation of financial data. B) The preparation of tax returns. C) The systematic recording of financial transactions. D) The analysis of financial statements. Show Answer Correct Answer: C) The systematic recording of financial transactions. 3. In the trial balance there is an Insurance Expense account amounting to IDR 3, 600, 000.00 in debit. The insurance was paid on March 1 2014 for 2 years. The adjusting entry as of December 31, 2014 is..... A) Insurance expense (D) IDR 1, 500, 000.00 Prepaid insurance (K) IDR 1, 500, 000.00. B) Prepaid insurance (D) Rp. 1, 500, 000.00 Insurance Expense (K) Rp. 1, 500, 000.00. C) Insurance expense (D) Rp. 2, 100, 000.00 Prepaid insurance (K) Rp. 2, 100, 000.00. D) Prepaid insurance (D) Rp. 2, 100, 000.00 Insurance Expense (K) Rp. 2, 100, 000.00. E) Insurance expense (D) Rp. 3, 600, 000.00 Prepaid insurance (K) Rp. 3, 600, 000.00. Show Answer Correct Answer: D) Prepaid insurance (D) Rp. 2, 100, 000.00 Insurance Expense (K) Rp. 2, 100, 000.00. 4. The extra cost a business pays for another business for beginning unusually profitable. A) Copyrights. B) Patents. C) Goodwill. D) Franchises. Show Answer Correct Answer: C) Goodwill. 5. An account is a summary of ..... at one place relating to a particular head A) All transactions. B) Some transactions. C) Journal. D) None. Show Answer Correct Answer: A) All transactions. 6. Which of the following includes ONLY Current Liabilities include A) Trademark, creditors, mortgage. B) Bank overdraft, mortgage, bank loan. C) Short-term loan, creditors, bank overdraft. D) Cash in hand, bank balance, short term loan. Show Answer Correct Answer: C) Short-term loan, creditors, bank overdraft. 7. Under the debtors system in branch a/c, credit sales are A) Debited to branch a/c. B) Credited to branch a/c. C) Debited to debtors a/c. D) Credited to debtors a/c. Show Answer Correct Answer: C) Debited to debtors a/c. 8. Financial Statements of a firm are prepared every year on 31st March, according to which concept? A) Money Measurement. B) Revenue Recognition. C) Materiality. D) Accounting Period. Show Answer Correct Answer: D) Accounting Period. 9. S Company sold merchandise to B Company on October 6, 2018 at a list price of P150, 000, trade discounts of 5% and 8%, FOB shipping point. Cash discount terms:2/eom, n/60. Because defective merchandise amounting to P10, 000 was erroneously delivered, S Company issued a credit memorandum to the buyer on October 11, 2018. B Company paid in full the balance due on October 25, 2018. The invoice price of goods purchased on October 6, 2018 is: A) P131, 100. B) P130, 500. C) P150, 000. D) For 122, 360. Show Answer Correct Answer: A) P131, 100. 10. How do we calculate Total Assets? A) Fixed Assets-Current Liabilities. B) Current Assets / Current Liabilities. C) Fixed Assets + Current Assets. D) Fixed Assets-Current Assets. Show Answer Correct Answer: C) Fixed Assets + Current Assets. 11. Prepaid rent on September 30, 2021 was recorded as prepaid rent of Rp. 9, 000, 000 for a period of 10 months. The correct adjusting entry on December 31, 2021 is..... A) Rent Expense (D) Rp. 3.600.000Prepaid Rent (K) Rp. 3.600.000. B) Rent Expense (D) Rp. 2.700.000Prepaid Rent (K) Rp. 2.700.000. C) Rent Expense (D) Rp. 9.000.000Prepaid Rent (K) Rp. 9.000.000. D) Prepaid Rent (DR) Rp. 6.300.000 Rent Expense (KRp. 6.300.000. Show Answer Correct Answer: B) Rent Expense (D) Rp. 2.700.000Prepaid Rent (K) Rp. 2.700.000. 12. Which of the following is NOT part of the accounting process? A) Identifying financial matters. B) Recording financial transactions. C) Reporting financial events. D) Increase the income of the company. Show Answer Correct Answer: D) Increase the income of the company. 13. Financial accounting is governed by A) International Standard. B) Local standard. C) Local as well as International. D) Top Management. Show Answer Correct Answer: A) International Standard. 14. Current Assets-Current Liabilities =? Helps to determine if a company can pay its liabilities. A) Quick Ratio. B) Current Ratio. C) Working Capital. D) Return on Assets. Show Answer Correct Answer: C) Working Capital. 15. In Malaysia, which regulatory body oversees the regulation and supervision of companies listed on the stock exchange (Bursa Malaysia)? A) Securities Commission Malaysia (SC). B) Ministry of Finance Malaysia. C) Malaysian Institute of Accountants (MIA). D) Malaysian National Bank. Show Answer Correct Answer: A) Securities Commission Malaysia (SC). 16. Under instalment payment system the seller treats the transaction as a A) Cash sale. B) Credit sale. C) None of these. D) None of above. Show Answer Correct Answer: B) Credit sale. 17. The rental income that still needs to be received as of December 31 is IDR 10, 000, 000 A) Account Receivable (D) Rp10.000.000 Rent Revenue (K) Rp10.000.000. B) Account Receivable (D) Rp1.000.000 Rent Revenue (K) Rp1.000.000. C) Account Payable (D) Rp10.000.000 Rent Revenue (K) Rp10.000.000. D) Account Receivable (D) Rp10.000.000 Interest Revenue (K) Rp10.000.000. Show Answer Correct Answer: A) Account Receivable (D) Rp10.000.000 Rent Revenue (K) Rp10.000.000. 18. Misrepresenting the truth, cheating, or deceiving others on purpose. A) Fraud. B) White Collar Crime. C) Conning. D) None of above. Show Answer Correct Answer: A) Fraud. 19. If working capital of a company is nil, what will be the current ratio? A) 1:1. B) 0:1. C) 1:0. D) 2:1. Show Answer Correct Answer: A) 1:1. 20. Which statement is true A) Owners equity+assets=current liabilities. B) Total assets-Total liabilities=owners equity. C) Income+liabilities =owners equity. D) None of above. Show Answer Correct Answer: B) Total assets-Total liabilities=owners equity. ← 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