This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 45 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 45 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Costs of Plant Assets in the form of land include all costs incurred to obtain and prepare the land according to its intended use. The following is not included in the scope of Land Costs:..... A) Purchase price. B) Intermediary commission. C) Notary fees. D) Maintenance cost. Show Answer Correct Answer: D) Maintenance cost. 2. According to accrual concept of accounting, financial or business transaction is recorded A) When cash is received or paid. B) When transaction occurs. C) When profit is computed. D) When balance sheet is prepared. Show Answer Correct Answer: B) When transaction occurs. 3. Which of the following is calculated in a manufacturing account? A) The total production costs paid during an accounting period. B) The total cost of goods produced during an accounting period. C) The production cost of goods completed during an accounting period. D) The gross profit on goods sold during an accounting period. Show Answer Correct Answer: C) The production cost of goods completed during an accounting period. 4. As prepaid expenses expire with the passage of time, the correct adjusting entry will be a A) Debit to an expense account and a credit to an expense account. B) Debit to an asset account and a credit to an asset account. C) Debit to an expense account and a credit to an asset account. D) Debit to an asset account and a credit to an expense account. Show Answer Correct Answer: C) Debit to an expense account and a credit to an asset account. 5. Where is the birthplace of accounting? A) Mesopotamia. B) Italy. C) Roman Empire. D) England. Show Answer Correct Answer: B) Italy. 6. The use of a single financial ratio provides a strong indication of a company's financial position. A) True. B) False. Show Answer Correct Answer: B) False. 7. Borrowing money from a 3rd party or owner invests money in return for capital stock. A) Operating activity. B) Financing activity. C) Investing activity. D) Accounting. Show Answer Correct Answer: B) Financing activity. 8. Which of the following are fixed assets? A) Cash in hand. B) Cash at the bank. C) Fixtures & Fittings. D) Inventory. Show Answer Correct Answer: C) Fixtures & Fittings. 9. ..... is a brief explanation to a journal entry, given below the journal entry, within brackets A) Narration. B) Ledger. C) Credit. D) Debit. Show Answer Correct Answer: A) Narration. 10. A specific type of fraud that involves misrepresenting the truth on any one of the financial statements, either by lying or by omitting important information causing loss to another. A) Accounting Fraud. B) Economic Fraud. C) Financial Fraud. D) White Collar Fraud. Show Answer Correct Answer: A) Accounting Fraud. 11. Trial balance is used to check the accuracy of A) Balance sheet balances. B) Ledger accounts balances. C) Cash flow statement balances. D) Income statement balances. Show Answer Correct Answer: B) Ledger accounts balances. 12. All house bank accounts are represented by G/L accounts in SAP. A) True. B) False. Show Answer Correct Answer: A) True. 13. LLP is registered under..... Act. 2008. A) NCLT. B) LLP. C) ICAI. D) Indian Companies Act 1956. Show Answer Correct Answer: B) LLP. 14. Which of the following is the general purpose of financial statements? A) Provide financial reporting information to a wide variety of users. B) Provide the most useful information possible at the least cost. C) All of the above. D) None of the above. Show Answer Correct Answer: C) All of the above. 15. Management accounting is subject to statutory requirements ie Company Act 1965 where all registered companies are required to publish financial statements annually. A) True. B) False. Show Answer Correct Answer: B) False. 16. Income and Expenditure Account records transactions of A) Revenue nature only. B) Capital nature only. C) Both Capital and Revenue. D) Cash transactions only. Show Answer Correct Answer: A) Revenue nature only. 17. Mirah Company compiled the following financial information as of December 31, 2020:Revenues $ 340, 000Owner's Capital (1/1/20) 140, 000Equipment 80, 000Expenses 240, 000Cash 90, 000Owner's Drawings 20, 000Supplies 20, 000Accounts payable 40, 000Accounts receivable 70, 000Mirah's owner's equity on December 31, 2020 is A) $ 100, 000. B) $ 140, 000. C) $ 220, 000. D) $ 260, 000. Show Answer Correct Answer: C) $ 220, 000. 18. It's not included in work sheet A) Trial balance. B) Adjustment journal. C) Income statement. D) Cash flow. Show Answer Correct Answer: D) Cash flow. 19. DEBTS INVESTMENTS CAN BE SUBSEQUENTLY MEASURED AT: A) FVPL AND AMORTIZED COST. B) FVOCI AND AMORTIZED COST. C) FVPL, FVOCI AND AMORTIZED COST. D) FVPL AND FVOCI. Show Answer Correct Answer: C) FVPL, FVOCI AND AMORTIZED COST. 20. A(n) ..... would be likely to use financial statements to make decisions for a business's future. A) Investor. B) Manager. C) Bank. D) Stockholder. Show Answer Correct Answer: B) Manager. ← 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