This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 56 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 56 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Bank reconciliation statement is prepared to arrive at the bank balance. A) True. B) False. Show Answer Correct Answer: B) False. 2. Rent and rates paid are apportioned among the departments on the basis of A) Sales. B) Space occupied. C) Purchase. D) Number of employees. Show Answer Correct Answer: B) Space occupied. 3. T-account format is used in situations where account balance is required A) Periodically. B) After each transaction. C) At the end of the business. D) None of the above. Show Answer Correct Answer: A) Periodically. 4. Based on the consideration obtained on the share issue, the issue is classified as ..... A) Issue of shares for cash. B) Issue of shares for consideration other than Cash. C) Both of the Above. D) None of the Above. Show Answer Correct Answer: C) Both of the Above. 5. Generally when an expense is involved in a transaction, an expense will be ..... A) Debited. B) Credited. Show Answer Correct Answer: A) Debited. 6. Who is the user of managerial accounting information? A) Investors. B) Managers. C) Creditors. D) Business competitors. Show Answer Correct Answer: B) Managers. 7. Find out the amount of capital, Assets Rs. 20, 000, Liabilities Rs. 5, 400 A) Rs. 4, 200. B) Rs. 14, 600. C) Rs. 5, 600. D) Rs. 12, 600. Show Answer Correct Answer: B) Rs. 14, 600. 8. Accounting provides data or information on A) Income and cost for the managers. B) Financial conditions of the institutions. C) Company's tax liability for a particular year. D) All the above. Show Answer Correct Answer: D) All the above. 9. Cash discount allowed is recorded in the books of account as follows: A) Cash discount is debited to discount allowed account. B) Cash discount is reduced from the invoice price. C) None of the above. D) Any of (a) and (b). Show Answer Correct Answer: A) Cash discount is debited to discount allowed account. 10. A tool used to increase or decrease each a account that is affected by a transaction. A) Debit. B) Credit. C) T account. D) Normal balance. Show Answer Correct Answer: C) T account. 11. The business entity concept requires that a business is treated as being separate from its owners A) True. B) False. Show Answer Correct Answer: A) True. 12. To decrease the balance in the following accounts, would you debit the account or would you credit the account?Prepaid Insurance A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 13. When the government spends more money than it receives in revenue, it is referred to as A) Debt. B) Deficit. C) National debt. D) Banarupa. Show Answer Correct Answer: B) Deficit. 14. Which of the following statements regarding reconciliation accounts are not true? A) Data are posted directly into them. B) Data are automatically posted into them after they are posted to the corresponding sub-ledger. C) The reconciliation account includes the sum of the postings of the sub-ledgers. D) None of the above. Show Answer Correct Answer: A) Data are posted directly into them. 15. Which category of accounts is category 1? A) Asset. B) Debt. C) Income. D) Owner's equity. Show Answer Correct Answer: A) Asset. 16. The primary objective of financial accounting is: A) To help organizations keep track of financing activities. B) To provide external reports to help users analyze an organization's activities. C) To help an organization define its ideas, goals, and actions. D) To help an organization to keep track of its buying and selling of resources. E) To prepare budgets. Show Answer Correct Answer: B) To provide external reports to help users analyze an organization's activities. 17. Any loss resulting on sale of repossessed goods can be recovered from hire purchaser A) True. B) False. Show Answer Correct Answer: B) False. 18. Wallowa Company purchased supplies costing $ 6, 000 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $ 1, 800 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be A) Debit Supplies Expense, $ 1, 800; Credit Supplies, $ 1, 800. B) Debit Supplies, $ 4, 200; Credit Supplies Expense, $ 4, 200. C) Debit Supplies Expense, $ 4, 200; Credit Supplies, $ 4, 200. D) Debit Supplies, $ 1, 800; Credit Supplies Expense, $ 1, 800. Show Answer Correct Answer: C) Debit Supplies Expense, $ 4, 200; Credit Supplies, $ 4, 200. 19. Which of the following is not a column of a three column cash book? A) Cash. B) Bank. C) Discount. D) Petty Cash. Show Answer Correct Answer: D) Petty Cash. 20. The profit and loss account shows the trading position of a business at the end of a specified accounting period. A) YES. B) NO. Show Answer Correct Answer: A) YES. ← 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