This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 51 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The place where transactions are first recorded is called the A) Daily log. B) Daysheet. C) Charge journal. D) General journal. E) All of these are correct. Show Answer Correct Answer: E) All of these are correct. 2. The profit made by a business in 2017 was P35, 400. The proprietor injected new capital of P10, 200 during the year and withdrew a monthly salary of P500. If the net assets at the end of 2017 were P95, 100, what was the proprietor's capital at the beginning of the year? A) 50, 000. B) 55, 500. C) 63, 900. D) 134, 700. Show Answer Correct Answer: B) 55, 500. 3. A list of the assets, liabilities, and stock holder's equity as of a specific date, usually at the close of the last day of a month or a year; balances the accounting equation. A) Income Statement. B) Retained Earnings Statement. C) Balance Sheet. D) Statement of Cash Flows. Show Answer Correct Answer: C) Balance Sheet. 4. ..... is the excess of the purchase consideration over the net value of assets A) Cash. B) Goodwill. C) Purchase consideration. D) Capital reserve. Show Answer Correct Answer: B) Goodwill. 5. What accounting system records the dual aspect of business transactions A) BOOKS OF PRIME ENTRY. B) DOUBLE-ENTRY SYSTEM OF LEDGERS. C) TRIAL BALANCE. D) FINANCIAL STATEMENTS. Show Answer Correct Answer: B) DOUBLE-ENTRY SYSTEM OF LEDGERS. 6. Financial Accounting is an ..... A) Art of . B) Science of . C) Commerce. D) Art & science of . E) None of the above. Show Answer Correct Answer: D) Art & science of . 7. Amounts of money owed to a medical practice for professional services rendered are A) Accounts payable. B) Major medical expenses. C) Accounts receivable. D) Actual charges. Show Answer Correct Answer: C) Accounts receivable. 8. All the following are users of accounting information except A) Shareholders. B) Management. C) Government. D) Debtors. Show Answer Correct Answer: D) Debtors. 9. Has limited liability. A) Sole Proprietorship. B) Corporation. C) Partnership. D) None of above. Show Answer Correct Answer: B) Corporation. 10. Salary paid to Ram, in this entry Ram's A/c will be A) Debited. B) Credited. C) Neither debited nor credited. D) None of the above. Show Answer Correct Answer: C) Neither debited nor credited. 11. Journal Entry to record new / agreed value of Non current Asset A) Non-Current Asset (new / agreed value) DebitRevaluation Credit. B) Revaluation DebitNon-Current Asset (new / agreed value) Credit. C) Both Entry 1 and 2. D) None of the above. Show Answer Correct Answer: A) Non-Current Asset (new / agreed value) DebitRevaluation Credit. 12. Andy has started a business and transferred his computer, worth $ 1, 500 into the business.What are the accounting entries to record this? A) Dr Capital Cr Computer equipment. B) Dr Computer equipment Cr Capital. C) Dr Computer equipment Cr Drawings. D) Dr Drawings Cr Computer equipment. Show Answer Correct Answer: B) Dr Computer equipment Cr Capital. 13. Rohan want to withdraw Rs.50, 000 from Bank. But in his account total balance is Rs. 30, 000. To withdraw more account process is called ..... A) Bank overdraft. B) Loan. C) Cash withdrawal. D) Liabilities. Show Answer Correct Answer: A) Bank overdraft. 14. Obligation to pay out money out money as some time in the future is A) Asset. B) Capital. C) Liabilities. D) Resources. Show Answer Correct Answer: C) Liabilities. 15. According to the double-entry system, for every debit entry, there must be a corresponding A) Debit entry. B) Credit entry. C) Asset entry. D) Liability entry. Show Answer Correct Answer: B) Credit entry. 16. Is provisions for bad debts adjustment an income or an expense? A) Both income and expense. B) Neither income nor expense. C) An expense. D) An income. Show Answer Correct Answer: D) An income. 17. ..... is the statement of the position of the business which shows the assets of a business and the sources of those assets A) Balance sheet. B) Capital. C) Assets. D) Liabilities. Show Answer Correct Answer: A) Balance sheet. 18. All the following are branches of accounting except A) Balance sheet accounting. B) Cost accounting. C) Management accounting. D) Financial accounting. Show Answer Correct Answer: A) Balance sheet accounting. 19. It provides the detailed cost data that management needs to control current operations and plan for the future. A) Cost Accounting. B) Management Accounting. C) Financial Accounting. D) Financial Analysis. Show Answer Correct Answer: A) Cost Accounting. 20. The money that's spent by a company to continue its business activities and operations. A) Investments. B) Expenses. Show Answer Correct Answer: B) Expenses. ← 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