This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 53 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 53 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Luca Pacioli was a ..... A) Philosopher. B) Doctor. C) Engineer. D) Mathematician. Show Answer Correct Answer: D) Mathematician. 2. When a company acquired the business of another company, the difference between Purchase Consideration and the net asset acquired is debited to ..... A) Property, Plant and Equipments. B) Capital Reserve. C) Cash Account. D) Goodwill. Show Answer Correct Answer: D) Goodwill. 3. On January 8, Gallery Corp. records $ 5, 000 of accrued salaries. On January 15, $ 10, 000 of salaries are paid. The entry on January 15 includes a debit to the Salaries Payable account. A) True. B) False. Show Answer Correct Answer: A) True. 4. On January 1 2019, PD Jalali sold merchandise to Toko Kenari for IDR 6, 000 with payment terms n/30. Based on this data, the recording carried out by PD Jalali is..... A) Trade receivables Rp. 6, 600-Sales-Rp. 6, 000 Input VAT-Rp. 600. B) Accounts receivable Rp. 6, 600-Sales-Rp. 6, 000. C) Sales Return Rp. 6, 600-Accounts Receivable-Rp. 6, 000. D) Cash Rp. 6, 600-Sales Deductions-Rp. 6, 000 Accounts receivable-Rp. 600. Show Answer Correct Answer: A) Trade receivables Rp. 6, 600-Sales-Rp. 6, 000 Input VAT-Rp. 600. 5. Which of the following is not true about accounting information? A) It reflects the mood of the business. B) Only events with monetary values are recorded. C) Different policies make comparison between companies easy. D) None of above. Show Answer Correct Answer: A) It reflects the mood of the business. 6. The hire purchaser can record the asset at its A) Hire purchase price. B) Cash down price. C) None of these. D) None of above. Show Answer Correct Answer: B) Cash down price. 7. Discuss the limitations of financial statements. A) Historical nature, reliance on estimates, lack of non-financial information, potential for manipulation. B) Predictive nature, reliance on guesses, abundance of financial information, potential for honesty. C) Real-time nature, reliance on actuals, lack of financial information, potential for transparency. D) Future nature, reliance on facts, abundance of non-financial information, potential for accuracy. Show Answer Correct Answer: A) Historical nature, reliance on estimates, lack of non-financial information, potential for manipulation. 8. The following are the causes of the dissolution of the federation based on the agreement of the court decision, EXCEPT ..... A) It's no longer possible to make a profit. B) There is no compatibility. C) Internal disputes. D) A member's abilities. Show Answer Correct Answer: D) A member's abilities. 9. On 1 January 20X1, Everton received $ 6m from the local government on the condition that they employ at least 200 staff each year for the next 4 years. On this date, it was virtually certain that Everton would meet these requirements. How much income and deferred income that Everton should present in its financial statements for the year ended 31 December 20X2 A) Income:3m; deferred income:3m. B) Income:1.5m; deferred income:3m. C) Deferred income:nil; Income:nil. D) Other. Show Answer Correct Answer: B) Income:1.5m; deferred income:3m. 10. What is accounts payable? A) Money that you owe someone else. B) Money that you loaned to the bank. C) Money that a business owes to another business. D) Money that you invested in a company. Show Answer Correct Answer: C) Money that a business owes to another business. 11. The Hire purchase Act came into force on 1st September, 1973 A) True. B) False. Show Answer Correct Answer: A) True. 12. Building repair costs of IDR 200, 000, 000 were incurred. If the repair of the building extends its economic life, then the journal that must be made is..... A) Building Rp. 200, 000, 000, -Cash Rp. 200, 000, 000, -. B) Accumulated building depreciation Rp. 200, 000, 000, -Cash Rp. 200, 000, 000, -. C) Building depreciation expense Rp. 200, 000, 000, -Accumulated building depreciation Rp. 200, 000, 000, -. D) Building depreciation expense Rp. 200, 000, 000, -Cash Rp. 200, 000, 000,. Show Answer Correct Answer: B) Accumulated building depreciation Rp. 200, 000, 000, -Cash Rp. 200, 000, 000, -. 13. If beginning capital was RM25, 000, ending capital is RM40, 000, and the owner's withdrawals were RM25, 000, the amount of net income or net loss was: A) Net income RM40, 000. B) Net loss RM5, 000. C) Net loss RM40, 000. D) Net income RM15, 000. Show Answer Correct Answer: A) Net income RM40, 000. 14. Cost of materials consumed is calculated as opening inventory of raw materials + purchases-closing inventory of raw materials A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 15. Shareholders are legally distinct from the business. They loss is not limited to what they invest. A) True. B) False. Show Answer Correct Answer: B) False. 16. Which of the following should be charged to the manufacturing account? A) Office rent. B) Carriage on sales. C) Managing Director's salary. D) Carriage on raw materials. Show Answer Correct Answer: D) Carriage on raw materials. 17. The basic rule of book-keeping 'debit the receiver and credit the giver'? A) Personal a/c. B) Real a/c. C) Nominal a/c. D) None of these. Show Answer Correct Answer: A) Personal a/c. 18. An asset account shows a A) Credit balance. B) Debit balance. C) Credit or debit balance. D) None of above. Show Answer Correct Answer: B) Debit balance. 19. What are the basic financial statements in financial accounting? A) Cash flow report, income summary, and stockholder's equity report. B) Profit statement, equity statement, and investment statement. C) Income statement, balance sheet, and cash flow statement. D) Expense report, liability statement, and revenue statement. Show Answer Correct Answer: C) Income statement, balance sheet, and cash flow statement. 20. Accounting provides financial information about a business to stakeholders of business: A) True. B) False. Show Answer Correct Answer: A) True. ← 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