This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 50 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Final account includes A) Trial balance. B) Journal entries. C) Trading account, profit and loss account and balance sheet. D) Ledger account. Show Answer Correct Answer: C) Trading account, profit and loss account and balance sheet. 2. Which statement contains all of the following-asset, liability, and equity? A) Statement of financial position. B) Statement of profit or loss. C) Statement of cash flow. D) Statement of changes in equity. Show Answer Correct Answer: A) Statement of financial position. 3. How many account for each partner According to Fluctuating Capital Account Method A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: A) 1. 4. The long-term debts or financial obligations that are listed on the SOFP of a company. A) Non-current liabilities. B) Non-current assets. C) Current liabilities. D) Current assets. Show Answer Correct Answer: A) Non-current liabilities. 5. Interest expense in relation to issued bonds was recognized using: A) Effective interest rate. B) Coupon rate of the bond. C) Other rate. D) None of above. Show Answer Correct Answer: A) Effective interest rate. 6. Which of the following is not used for determining working capital? A) Cash. B) Debtors. C) Motor vehicle. D) Overdraft. Show Answer Correct Answer: C) Motor vehicle. 7. A sole trader purchased goods in cash worth N2, 000 at 2% discount and made a cash sale of N 1, 000 at the same rate of discount. Determine the amount of discount allowed. A) N20. B) N40. C) N400. D) N200. Show Answer Correct Answer: A) N20. 8. Who is wrong in case of preference shares? A) Dividend before equity shares. B) Capital returned first in case of liquidation. C) A predetermined rate of dividend. D) Right to participate in management operations. Show Answer Correct Answer: D) Right to participate in management operations. 9. Which of the following is not an objective of financial reporting? A) To provide information that will increase the value of a company. B) To provide information in assessing future cash flows. C) To provide information that is useful for making credit and investment decisions. D) To provide information that identifies what is owned, what is owed and the ownership interest in the company. Show Answer Correct Answer: A) To provide information that will increase the value of a company. 10. Rules for Real Account is A) Debit what comes in Credit what goes out. B) Debit all Expenses and Lossess credit all incomes and gains. C) Debit the receiver credit the giver. D) None of the above. Show Answer Correct Answer: A) Debit what comes in Credit what goes out. 11. A business is a going concern if it does not plan to go bankrupt and liquidate its assets A) True. B) False. Show Answer Correct Answer: A) True. 12. In case of trading concern, cost of goods sold and cost of sales are same. A) True. B) False. Show Answer Correct Answer: B) False. 13. Has unlimited personal liability. A) Sole Proprietorship & Corporation. B) Corporation & Partnership. C) Partnership. D) Partnership & Sole Proprietorship. Show Answer Correct Answer: D) Partnership & Sole Proprietorship. 14. When cash is received or paid in advance before a service is provided is considered? A) Accrual accounting. B) GAAP. C) Deferral revenue or expenses. D) Depreciation. Show Answer Correct Answer: C) Deferral revenue or expenses. 15. Buildings-2, 50, 000. Calculate Depreciation on Buildings at 10%. A) 10, 000. B) 15, 000. C) 20, 000. D) 25, 000. Show Answer Correct Answer: D) 25, 000. 16. P. Hawk has a manufacturing business. The cost of his raw materials is $ 1 900. Rates and rent total $ 2 000 and factory wages amount to $ 2 500. The number of units produced is 1 640. What is the cost of producing ONE unit? A) A. $ 4. B) B, $ 6. C) C. $ 10. D) D, $ 13. Show Answer Correct Answer: A) A. $ 4. 17. The branch of accounting that generates reports and information for the use of internal management is known as: A) Auditing. B) Tax accounting. C) Management accounting. D) International counter. Show Answer Correct Answer: C) Management accounting. 18. The enforcement of the Financial Reporting Act 1997 took place on 9 March 1997, giving rise to the establishment of both the Malaysian Accounting Standards Board (MASB) and the Financial Reporting Foundation (FRF). A) True. B) False. Show Answer Correct Answer: B) False. 19. Who has been appointed as the 1st chairman of the International Financial Services Centre Authority for a 3 years term? A) Ingiti Srinivas. B) Sumant Chowdhury. C) Anant Narayan Nanda. D) Arun Goel. Show Answer Correct Answer: A) Ingiti Srinivas. 20. Accountants should use ..... when making payments to vendors. A) Vouchers. B) Checks. C) Receipts. D) Cash. Show Answer Correct Answer: A) Vouchers. ← 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