This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is considered an intangible asset? A) Copyright. B) Patent. C) Goodwill. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. What does COGS stand for? A) Cost of goals scored. B) Cost of goods stocked. C) Cost of goods sold. D) Cost of goods solvent. Show Answer Correct Answer: C) Cost of goods sold. 3. You are presented a financial statement and from it you can tell what the business owed looking at a financial statement. By studying the information on the statement, you can tell what the business owns and what it owes as of a certain date. You are looking at: A) Income Statement. B) Assets. C) Revenues. D) Balance Sheet. Show Answer Correct Answer: D) Balance Sheet. 4. Net Income =? A) Revenue-Expenses. B) Assets-Liabilities. C) Stockholder's Equity + Revenue-Expenses. D) Retained Earnings + Net Income-Dividends. Show Answer Correct Answer: A) Revenue-Expenses. 5. Stock splits and stock dividends both affect the par value of the stock. A) True. B) False. Show Answer Correct Answer: B) False. 6. A company using the accrual method of accounting performed services on account in August. The services were for $ 2, 000 and the company gave the customer credit terms that state the amount is to be paid to the company in September.Which account should the company credit for $ 2, 000 in August? A) Cash. B) Accounts Receivable. C) Service Revenue. D) None of above. Show Answer Correct Answer: C) Service Revenue. 7. What is the formula for Gross Profit Margin A) Profit / Net sales revenue X 100. B) Gross profit / Net sales revenue X 100. C) Gross profit / Sales revenue X 100. D) Profit / Cost of sales X 100. Show Answer Correct Answer: B) Gross profit / Net sales revenue X 100. 8. Find the term to match the meaning below:A charge added to purchases when the supplier delivers inventory to the business's premises. It is sometimes referred to as a delivery charge A) Carriage in. B) Carriage way. C) Carriage out. D) Carriage car. Show Answer Correct Answer: A) Carriage in. 9. ..... is referred to as a statement of net worth, or a statement of financial position. A) Income Statement. B) Cash Flow Statement. C) Balance Sheet. D) Statement of Changes in Equity. Show Answer Correct Answer: C) Balance Sheet. 10. Sales Book records both cash and credit sales. A) True. B) False. Show Answer Correct Answer: B) False. 11. Rights of the creditors are called liabilities. A) True. B) False. Show Answer Correct Answer: A) True. 12. (d) ..... :A document of the company that lists the goods that a business has received from a supplier. A) Debit advice. B) Credit advice. C) Goods received note (GRN). D) Goods dispatched (delivery) note (GDN). E) Purchase order. Show Answer Correct Answer: C) Goods received note (GRN). 13. X and Y are in partnership with combined capital and current account balances of $ 125 000.Z is admitted as a partner, introducing capital of $ 40 000. At that time, the assets of the partnership are revalued upwards by $ 50 000 and goodwill was valued at $ 18 000. Goodwill was not to remain in the books of account.What was the total capital employed of the partnership immediately after the admission of Z? A) $ 183 000. B) $ 197 000. C) $ 215 000. D) $ 233 000. Show Answer Correct Answer: C) $ 215 000. 14. Which account is not a liability account? A) Accounts payable. B) Accrued expenses. C) Cash. D) Notes payable. Show Answer Correct Answer: C) Cash. 15. Accounting Principles include A) Accounting Concepts. B) Accounting Conventions. C) Both of them. D) None of them. Show Answer Correct Answer: C) Both of them. 16. All the following are reasons why trial balance may not balance except A) Error of posting. B) Errors in addition. C) Wrong figures in the ledger. D) Error of omission. Show Answer Correct Answer: D) Error of omission. 17. There is no difference between Receipts and Payment Account and Income and Expenditure Account. A) True. B) False. Show Answer Correct Answer: B) False. 18. To increase the balance in the following accounts, would you debit the account or would you credit the account?Supplies Expense A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 19. An amount entered on the right side of a T account. A) Debit. B) Credit. C) Normal balance. D) All of the above. Show Answer Correct Answer: B) Credit. 20. In the Absence of Profit and Loss Sharing Ration in the agreement the Profit or Loss is Divided by A) Capital Proportion. B) Last Profit or Loss Ratio. C) Equally. D) Any Ratio. Show Answer Correct Answer: C) Equally. ← PreviousNext →Related QuizzesAccounting QuizzesFinancial Accounting Quiz 1Financial Accounting Quiz 2Financial Accounting Quiz 3Financial Accounting Quiz 4Financial Accounting Quiz 6Financial Accounting Quiz 7Financial Accounting Quiz 8Financial Accounting Quiz 9Financial Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books