This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 58 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. To convey the Language of Business, certain principles are required to be followed for maintaining Business transactions. A) True. B) False. C) Can't say. D) Depend on situation. Show Answer Correct Answer: A) True. 2. Paid Salary to Staff via Bank Transfer 1, 00, 000. A) Salary A/C (Debit)-To Cash A/C (Credit). B) A) Salary A/C (Debit)-To Bank A/C (Credit). C) A) Cash A/C (Debit)-To Bank A/C (Credit). D) A) Salary A/C (Debit)-To Income A/C (Credit). Show Answer Correct Answer: B) A) Salary A/C (Debit)-To Bank A/C (Credit). 3. Income and expenditure account is a ..... A) Personal account. B) Nominal account. C) Real account. D) Real and nominal account. Show Answer Correct Answer: B) Nominal account. 4. Owners equity, assets and liabilities are shown on which year end statement A) Income statement. B) Cash flow statement. C) Balance sheet. D) Profit and Loss Account. Show Answer Correct Answer: C) Balance sheet. 5. Find the term to match the meaning below:Inventory carried forward from the previous accounting period A) Opening Inventory. B) Purchases. C) Closing Inventory. D) Carriage In. Show Answer Correct Answer: A) Opening Inventory. 6. The calculation and interpretation of a financial ratio is called ratio analysis. A) True. B) False. Show Answer Correct Answer: A) True. 7. The most complex form of business organization. A) Corporation. B) Partnership. C) Sole Proprietorship. D) None of above. Show Answer Correct Answer: A) Corporation. 8. A reduction in the ability of plant asset to provide service over time is known as: A) Accrual accounting. B) Depreciation. C) Deferrals. D) GAAP. Show Answer Correct Answer: B) Depreciation. 9. Equipment is depreciated at 10% of cost, in Trial Balance there is an Equipment account Rp20.000.000 and Accumulated Depreciation Equipment Rp5.000.000 A) Depreciation Expense (D) Rp4.000.000 Accumulated Dep. Equipment (K) Rp4.000.000. B) Depreciation Expense (D) Rp1.500.000 Accumulated Depreciation (K) Rp1.500.000. C) Depreciation Expense (D) Rp2.000.000 Accumulated Dep. Equipment (K) Rp2.000.000. D) Depreciation Expense (D) Rp1.000.000 Accumulated Dep. Equipment (K) Rp1.000.000. Show Answer Correct Answer: C) Depreciation Expense (D) Rp2.000.000 Accumulated Dep. Equipment (K) Rp2.000.000. 10. $ Work in progress as at January 1 1 600Work in progress as at December 31 1 700Cost of materials used 3 000Indirect expenses 3 200Factory wages 5 000 What is the cost of goods produced? A) $ 8 000. B) $ 8 700. C) $ 11 100. D) $ 11 200. Show Answer Correct Answer: C) $ 11 100. 11. X buys a machine on 1 January 2000 for $ 10 000 and depreciates it by 20 % per annum using thestraight-line method.X sells the machine on 1 January 2003 for $ 3000.What is the profit or loss on disposal? A) $ 1000 loss. B) $ 3000 loss. C) $ 1000 profit. D) $ 3000 profit. Show Answer Correct Answer: A) $ 1000 loss. 12. Obligations (amounts owed) are reported on the statement of financial position and are referred to as ..... A) Assets. B) Liabilities. C) Equity. D) Debt. Show Answer Correct Answer: B) Liabilities. 13. Which of the following is the basis for apportioning rent among departments? A) Sales. B) Floor area. C) Number of employees. D) Direct labour cost. Show Answer Correct Answer: B) Floor area. 14. The purchase of treasury shares A) Decreases shares authorized. B) Decreases shares issued. C) Decreases shares outstanding. D) Has no effect on shares outstanding. Show Answer Correct Answer: C) Decreases shares outstanding. 15. Notional Loss Method is also Known as A) Minimum Loss Method. B) Average Loss Method. C) Expected Loss Method. D) Maximum Loss Method. Show Answer Correct Answer: D) Maximum Loss Method. 16. ..... is a specialised branch of accounting that keeps track of a company's financial transactions. A) Cost accounting. B) Management accounting. C) Financial Accounting. D) Corporate accounting. Show Answer Correct Answer: C) Financial Accounting. 17. CURRENT VALUE INCLUDES ALL THE FOLLOWING, EXCEPT A) FAIR VALUE. B) HISTORICAL COST. C) CURRENT COST. D) FULFILLMENT VALUE. Show Answer Correct Answer: B) HISTORICAL COST. 18. Banking activities include A) Bank accounts. B) Electronic funds transfer. C) Bank deposits. D) Chequing. E) All of the above. Show Answer Correct Answer: E) All of the above. 19. A method of inventory of merchandise that results in low taxes A) FIFO. B) LIFO. C) Average. D) Specific Identification. Show Answer Correct Answer: B) LIFO. 20. Discuss the importance of financial accounting in decision-making for businesses. A) Financial accounting helps businesses make informed decisions by providing crucial financial information. B) Financial accounting is only useful for personal finance, not for businesses. C) Financial accounting has no impact on decision-making. D) Financial accounting only provides irrelevant information for decision-making. Show Answer Correct Answer: A) Financial accounting helps businesses make informed decisions by providing crucial financial information. ← 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