This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 49 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Theory is..... A) Temporary testing. B) Consequences of observation. C) Capture the world, to rationalize, and explain it. D) Principles and standards. Show Answer Correct Answer: C) Capture the world, to rationalize, and explain it. 2. Journal Entry for Purchasing Machine in Cash is? A) Purchase A/C (Debit)-To Cash A/C (Credit). B) Purchase A/C (Debit)-To Machine A/C (Credit). C) Machine A/C(Debit)-To Purchase A/c (Credit). D) Machine A/C (Debit)-To Cash A/C (Credit). Show Answer Correct Answer: D) Machine A/C (Debit)-To Cash A/C (Credit). 3. On October 1 2019, IDR 2, 400, 000 was paid for advertising in the Republika daily, for a publication period of 1 year. The transaction is recorded in the prepaid advertising estimate of Rp. 2, 400, 000. On December 31 2019, the following adjusting journal will be made..... A) Prepaid advertising (D) Rp. 600, 000.00 Advertising costs (K) Rp. 600, 000.00. B) Advertising costs (D) Rp. 1, 800, 000.00 Prepaid advertising (K) Rp. 1, 800, 000.00. C) Advertising costs (D) Rp. 2, 400, 000.00 Prepaid advertising (K) Rp. 2, 400, 000.00. D) Prepaid advertising (D) Rp. 1, 800, 000.00 Advertising costs (K) Rp. 1, 800, 000.00. E) Advertising costs (DI) Rp. 600, 000.00 Prepaid advertising (K) Rp. 600, 000.00. Show Answer Correct Answer: E) Advertising costs (DI) Rp. 600, 000.00 Prepaid advertising (K) Rp. 600, 000.00. 4. During the year, Ferguson made the following accounting entries to account for the depreciation charge relating to motor vehicles:Debit Accumulated depreciation-motor vehicles $ 5, 000 Credit Depreciation expense-motor vehicles $ 5, 000What are the journal entries required to account correctly for the depreciation charge for motor vehicles for the year? A) Debit Motor vehicles $ 5, 000, and Credit Accumulated depreciation $ 5, 000. B) Debit Depreciation Expense $ 10, 000, and Credit Accumulated depreciation $ 10, 000. C) Debit Depreciation expense $ 5, 000, and Credit Accumulated depreciation $ 5, 000. D) Debit Accumulated depreciation $ 10, 000, and Credit Depreciation expense $ 10, 000. Show Answer Correct Answer: B) Debit Depreciation Expense $ 10, 000, and Credit Accumulated depreciation $ 10, 000. 5. Which category of accounts is category 2? A) Asset. B) Debt. C) Income. D) Owner's equity. Show Answer Correct Answer: B) Debt. 6. The following are the common causes of depreciation except ..... A) Wear and tear. B) Passage of time. C) Usage. D) Amount of bad debts. Show Answer Correct Answer: D) Amount of bad debts. 7. The ledger provides up-to-date financial information pertaining to which of the following? A) Patients. B) Employees. C) Physician. D) Insurance companies. Show Answer Correct Answer: A) Patients. 8. What is journal? A) Primary book. B) Secondary. C) Third book. D) None. Show Answer Correct Answer: A) Primary book. 9. Does an increase in gross profit have to equate to an increase in gross margin? A) True. B) False. Show Answer Correct Answer: B) False. 10. Assets that has useful life more than a year is A) Currest assets. B) Fixed Assets. C) Other Assets. D) Current Liabilities. Show Answer Correct Answer: B) Fixed Assets. 11. Selling expenses A) Result from the company's effort to purchase items. B) Result from the company's effort to create sales. C) Result from the company's effort to buy lands. D) All the above. Show Answer Correct Answer: B) Result from the company's effort to create sales. 12. Cornhusker Supplies Inc. purchased a 12-month insurance policy on March 1, 2020 for $ 2, 640. At March 31, 2020, the adjusting journal entry to record expiration of this asset will include a A) Debit to Prepaid Insurance and a credit to Cash for $ 2, 640. B) Debit to Prepaid Insurance and a credit to Insurance Expense for $ 275. C) Debit to Insurance Expense and a credit to Prepaid Insurance for $ 220. D) Debit to Insurance Expense and a credit to Cash for $ 220. Show Answer Correct Answer: C) Debit to Insurance Expense and a credit to Prepaid Insurance for $ 220. 13. A company prepares financial statements to 31st December 2014. The accounts are to be approved by the Board of Directors on 4th March 2015. On 22nd January 2015 an item of equipment shown as an asset in the Statement of Financial Position at 31st December 2014 was sold. According to FRS 102-section 32 "Events After the end of the Reporting Period" : A) This is an adjusting event and the Financial Statements need to be adjusted. B) This is a non-adjusting event but may be disclosed in the notes to the Financial Statements if of material value. C) This is an adjusting event and should be disclosed in the notes to the Financial Statements. D) This is an adjusting event but is immaterial in nature. Show Answer Correct Answer: B) This is a non-adjusting event but may be disclosed in the notes to the Financial Statements if of material value. 14. A company purchased a an equipment on January 1 for $ 5, 400. This register has a useful life of 10 years and a salvage value of $ 400. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method? A) 864. B) 500. C) 800. D) 1080. Show Answer Correct Answer: A) 864. 15. Transferring information from a journal entry to a ledger account (p. 98) A) Journaling. B) Posting. C) File maintenance. D) Correcting entry. Show Answer Correct Answer: B) Posting. 16. In the trial balance as of December 31, 2000, the prepaid rent account shows IDR 1, 800, 000 for 1 year's rent, starting from October 1, 2000. The adjusting entries for the transactions mentioned above are: A) Prepaid rent Rp. 450, 000 Rent expense Rp. 450, 000. B) Rent expense Rp. 450, 000 Prepaid rent Rp. 450, 000. C) Rent expense Rp. 450, 000 Rent payable Rp. 450, 000. D) Prepaid rent Rp. 1, 350, 000 Cash Rp. 1, 350, 000. E) Rent expense Rp. 1, 350, 000 Prepaid rent Rp. 1, 350, 000. Show Answer Correct Answer: B) Rent expense Rp. 450, 000 Prepaid rent Rp. 450, 000. 17. Insurance Claim Received on account of plant and machinery completely damaged by fire is a capital receipt A) True. B) False. Show Answer Correct Answer: A) True. 18. Interest is the cost of A) Using someone else's money. B) Purchasing inventory with cash. C) Making a sale. D) Being in business. Show Answer Correct Answer: A) Using someone else's money. 19. Correct form of Accounting Equation is? A) Assets = Liabilities + Capital. B) Assets + Liabilities = Capital. C) Assets + Capital = Liabilities. D) Assets-Capital = Liabilities. Show Answer Correct Answer: A) Assets = Liabilities + Capital. 20. A decrease in Owner's Equity is recorded by a ..... entry in the account. A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. ← 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