This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 60 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 60 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Under which of the following circumstances will the asset of hire purchase legally belong to the purchaser? A) When the deposit is paid. B) When the hire purchase agreement is signed. C) When the first instalment is paid. D) When the final instalment is paid. Show Answer Correct Answer: D) When the final instalment is paid. 2. Employee salaries are paid every Saturday for 6 working days. Employee salary per person Rp. 50, 000/day. Cafe "Danbam" has 5 employees. The last salary payment was on December 28 2020. The adjusting entry at the end of December 2020 was..... A) Salaries Expense (D); Salaries Payable (K) Rp. 50.000. B) Salaries Expense (D); Salaries Payable (K) Rp. 150.000. C) Salaries Expense (D); Salaries Payable (K) Rp. 750.000. D) Salaries Expense (D); Salaries Payable (K) Rp. 250.000. Show Answer Correct Answer: C) Salaries Expense (D); Salaries Payable (K) Rp. 750.000. 3. The account that reflects money owed to the employees earned as of the end of the period but not paid. A) Interest Payable. B) Depreciation Payable. C) Wages Payable. D) Liability. Show Answer Correct Answer: C) Wages Payable. 4. When the issue price and face value are same, the issue is termed as ..... A) Issued at Premium. B) Issued at Par. C) Issued at Discount. D) All of the Above. Show Answer Correct Answer: B) Issued at Par. 5. On settlement of the vendors account, the correct accounting entries are debit vendor account and credit A) Bank account. B) Purchase consideration account. C) Capital reserve account. D) Goodwill account. Show Answer Correct Answer: A) Bank account. 6. A non-cash journal entry at the end of a period that adjust a balance sheet account. A) Reversing entry. B) Adjusting Entry. C) Payable Entry. D) Liability Entry. Show Answer Correct Answer: B) Adjusting Entry. 7. Which is not included in the category of current liabilities? A) Long-term obligation. B) Note payable. C) Trade debt. D) Income received in advance. Show Answer Correct Answer: A) Long-term obligation. 8. An asset-expense relationship exists with A) Liability accounts. B) Revenue accounts. C) Prepaid expense adjusting entries. D) Accrued expense adjusting entries. Show Answer Correct Answer: C) Prepaid expense adjusting entries. 9. Financial Statements A) Direct cost. B) Administrative. C) Operative. D) Balance Sheet, Income statement. Show Answer Correct Answer: D) Balance Sheet, Income statement. 10. Capital provided by the owner is treated as a liability. A) True. B) False. Show Answer Correct Answer: A) True. 11. Which of the following is not a transaction that will affect owner's equity? A) Paid cash for supplies. B) Received cash from sales. C) Sold services on account. D) Received cash from owner as an investment. Show Answer Correct Answer: A) Paid cash for supplies. 12. Memorandum joint venture account is prepared to find out amount due from co venture A) True. B) False. Show Answer Correct Answer: B) False. 13. What is the value of the closing inventory? A) £13, 480. B) £11, 180. C) £15, 680. D) £10, 980. Show Answer Correct Answer: A) £13, 480. 14. The following are the reasons why companies invest in debt or stock securities, except: A) The company may have more money. B) To generate income from investments. C) To increase the company's liabilities. D) For strategic reasons. Show Answer Correct Answer: C) To increase the company's liabilities. 15. A schedule showing the principle, interest, and remaining balance for each payment on a loan. A) Amortization Schedule. B) Payment Schedule. C) Depreciation Schedule. D) Interest Schedule. Show Answer Correct Answer: A) Amortization Schedule. 16. Dead Rent is also called as A) Outstanding Rent. B) Prepaid Rent. C) Minimum Rent. D) Post paid Rent. Show Answer Correct Answer: C) Minimum Rent. 17. The procedures and processes used by a company to safeguard assets, process information accurately, ensure compliance to rules and regulations. A) Internal control. B) Control Environment. C) Risk assessment. D) Monitoring. Show Answer Correct Answer: A) Internal control. 18. The process of collecting, measuring and recording an enterprise's transactions. A) Business Transaction. B) Financial Accounting. C) Bookkeeping. D) Financial Statements. Show Answer Correct Answer: C) Bookkeeping. 19. Buyer pays freight costs A) FOB. B) FOB Shipping Point. C) FOB Destination. D) FOB Merchandise. Show Answer Correct Answer: B) FOB Shipping Point. 20. There are 2 systems of accounting i.e cash basis system of accounting and ..... basis of accounting A) Double entry. B) Accrual. C) Single entry. D) Dual aspect. Show Answer Correct Answer: B) Accrual. ← 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