This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 63 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. During August, Gallery Corp. purchased $ 4, 000 worth of supplies. At August 31 the adjusted balance in the Supplies account was $ 2, 800. The adjusting entry included a $ 1, 200 debit to Supplies Expense. A) True. B) False. Show Answer Correct Answer: A) True. 2. When the Issue Price is lower than the Face Value, the issue is termed as ..... A) Issued at Discount. B) Issued at Premium. C) Issued at Par. D) All of the Above. Show Answer Correct Answer: A) Issued at Discount. 3. Which statement shows a period of time? A) Income Statement. B) Balance Sheet. C) Both A & B. D) Neither A nor B. Show Answer Correct Answer: A) Income Statement. 4. The right hand side of a "T" account is called A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 5. With the object to promote sales the customers are allowed A) Cash Discount. B) Cash & trade discount. C) Trade Discount. D) Loan. Show Answer Correct Answer: C) Trade Discount. 6. Accounting standards result from the interaction of factors..... A) Economic events. B) Personal interests. C) Historical journey. D) All true. Show Answer Correct Answer: D) All true. 7. The established system of keeping track of economic resources such as money, buildings, equipment, and products A) Accounting. B) Finance. C) Journalizing. D) Managerial Accounting. Show Answer Correct Answer: A) Accounting. 8. Financial obligations that will not be paid off within a year A) Current Assets. B) Account Payables. C) Long-Term Liabilities. D) Fixed Assets. Show Answer Correct Answer: C) Long-Term Liabilities. 9. What is the significance of the trial balance in financial accounting? A) It has no impact on the accuracy of the accounting records. B) It is only important for small businesses. C) It is used to calculate the total revenue of the company. D) It helps in detecting errors and ensuring the accuracy of the accounting records. Show Answer Correct Answer: D) It helps in detecting errors and ensuring the accuracy of the accounting records. 10. Income and Expenditure Account reveals: A) Net Profit. B) Cash in hand. C) Surplus or Deficit. D) Bank overdraft. Show Answer Correct Answer: C) Surplus or Deficit. 11. Capital fund of non profit organization includes A) Cash and bank balance. B) Dividends and shares. C) Mutual funds. D) Donations and membership fees. Show Answer Correct Answer: D) Donations and membership fees. 12. ..... is concerned with the production of financial statements for external users. A) Management reporting. B) Environmental reporting. C) Financial accounting. D) None of above. Show Answer Correct Answer: C) Financial accounting. 13. ..... are the basis of the business's financial accounting.A. Accounting recordsB. BookkeepingC. Sales VolumeD. Both A & B A) Accounting records. B) Bookkeeping. C) Sales Volume. D) Both A & B. Show Answer Correct Answer: D) Both A & B. 14. If Push Company owned 51 percent in the outstanding common stock of Shove Company, which reporting method would be appropriate? A) Cost method. B) Consolidation. C) Equity method. D) Merger method. Show Answer Correct Answer: B) Consolidation. 15. Adjusting entries A) Affect only equity accounts. B) Affect only statement of cash flows accounts. C) Affect only income statement accounts. D) Affect only balance sheet accounts. E) Affect both income statement and balance sheet accounts. Show Answer Correct Answer: E) Affect both income statement and balance sheet accounts. 16. Receipts and Payments Account is prepared by adopting cash principle of accounting. A) True. B) False. Show Answer Correct Answer: A) True. 17. Which principle/guideline justifies a company violating an accounting principle because the amounts are immaterial? A) Materiality. B) Full Disclosure. C) Conservatism. D) Monetary Unit. Show Answer Correct Answer: A) Materiality. 18. ..... is the scope of financial accounting. A) Collection and processing of data. B) Verifying or auditing data. C) Publishing data. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. Cash book is having ..... Types? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: C) 3. 20. Using the information in Question 6, what entry would Horicon make to record the receipt of the dividend from Sheboygan? A) Debit Cash and credit Revenue from Stock Investments. B) Debit Cash Dividends and credit Revenue from Stock Investments. C) Debit Cash and credit Stock Investments. D) Debit Cash and credit Dividend Revenue. Show Answer Correct Answer: C) Debit Cash and credit Stock Investments. ← 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