This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 54 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is the inflow of moneyfrom ordinary trading activities, e.g. cash sales, credit sales, charges/fees and royalties. A) Revenue. B) Costs. Show Answer Correct Answer: A) Revenue. 2. Which form of business creates a separate business entity? A) Sole proprietorship. B) Partnership. C) Corporation. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Cost Classification A) Direct, indirect. B) Manager. C) Harbor. D) None of above. Show Answer Correct Answer: A) Direct, indirect. 4. Which user has the need of financial reporting to assess the company's ability to pay its employees increased salaries? A) Government. B) Trade Unions. C) Trade creditors. D) Shareholders. Show Answer Correct Answer: B) Trade Unions. 5. ..... is the properties or resources of a business organization A) Assets. B) Capital. C) Long term. D) Liability. Show Answer Correct Answer: A) Assets. 6. Deferred revenue expenditure is current year's revenue expenditure to be paid in the later years. A) True. B) False. Show Answer Correct Answer: B) False. 7. Below are example of cash except for: A) Petty cash. B) Bank draft. C) Cash receipt. D) Coins. Show Answer Correct Answer: C) Cash receipt. 8. A customer saw a carpet in 2017 and said she might well buy it. She telephoned in 2018 and asked for the carpet to be delivered. The item was not treated as a sale in 2017 but was treated as a sale in 2018. What accounting concept is being applied? A) Realisation. B) Accruals. C) Prudence. D) Going concern. Show Answer Correct Answer: A) Realisation. 9. Returns Outwards A) Sales Return. B) Purchases Return. C) Carriage. D) All. Show Answer Correct Answer: B) Purchases Return. 10. (k) ..... :is used in a transaction that increases a customer's funds. Stated differently, a credit memorandum refers to an increase in a deposit account balance, such as a deposit made to the account. A) Debit advice. B) Credit advice. C) Receipt. D) Invoice. E) Quotation. Show Answer Correct Answer: B) Credit advice. 11. Capital of NPO is generally known as: A) Equity. B) Accumulated fund. C) Capital fund. D) Financial reserve. Show Answer Correct Answer: C) Capital fund. 12. Which of the following groups has only external users of accounting information? A) Owners, present investors, stock exchange. B) Potential investors, government planners, stock exchange. C) Managers, board of directors, partners. D) Government planners, supervisors, customers. Show Answer Correct Answer: B) Potential investors, government planners, stock exchange. 13. When a company issues stock with a par value, what columns are typically presented in the statement of stockholders' equity? A) Common stock; additional paid-in capital; and property, plant, and equipment, net. B) Cash; and property, plant, and equipment, net. C) Common stock; additional paid-in capital; and retained earnings. D) Common stock; additional paid-in capital; and cash. Show Answer Correct Answer: C) Common stock; additional paid-in capital; and retained earnings. 14. Identify the objective behind the formulation of National Jute Policy, 2005. A) Increasing productivity. B) Improving quality and ensuring good prices. C) Enhance the yield per hectare. D) All the above. Show Answer Correct Answer: D) All the above. 15. 1 Pak Darmawan has a trademark that is quite popular with the public. Pak Darmawan is often the main sponsor of sporting events so that Pak Darmawan's products sell well in the market and the company's financial impact is growing. From the illustration of Mr. Darmawan's company, what type of assets do you mean..... A) Tangible fixed assets. B) Intangible fixed assets. C) Depresiasi fixed assets. D) Deplesiation of intangible fixed assets. E) Amortisasi fixed assets. Show Answer Correct Answer: B) Intangible fixed assets. 16. Which of the following accounts will be credited on giving cash donation? A) Cash A/c. B) Donation A/c. C) Purchases A/c. D) None of these. Show Answer Correct Answer: A) Cash A/c. 17. Which of the following best represents a current liability A) Short Term loan. B) Intangible asset. C) Sales revenue. D) Building. Show Answer Correct Answer: A) Short Term loan. 18. What is the priority in financial accounting? A) Using estimates and shortcuts. B) Being relevant and timely. C) Following a strict framework. D) Being objective and precise. Show Answer Correct Answer: D) Being objective and precise. 19. In what circumstances is compensation expense immediately recognized under a share option plan? A) In all circumstances. B) In circumstances when the options are exercisable within two years for services rendered over the next two years. C) In circumstances when the options are granted for prior service and the options are immediately exercisable. D) In no circumstances is compensation expense immediately recognized. Show Answer Correct Answer: C) In circumstances when the options are granted for prior service and the options are immediately exercisable. 20. The party who receives the goods in a consignment sale is called..... A) Trustee. B) Commissioner. C) Investor. D) Creditor. Show Answer Correct Answer: B) Commissioner. ← 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