This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 64 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 64 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Viking issues $ 100, 000 5% loan notes on 1 January 20X4, incurring issue costs of $ 3, 000.These loan notes are redeemable at a premium, meaning that the effective rate of interest is 8% per annum.What is the finance cost to be shown in the statement of profit or loss for the year ended 31 December 20X5? A) $ 8, 240. B) $ 7, 981. C) $ 7, 760. D) Other. Show Answer Correct Answer: B) $ 7, 981. 2. The effect for cash sales is? A) Assets increase, liability increase. B) Assets increase, revenue increase. C) Assets decrease, revenue increase. D) Assets increase, revenue decrease. Show Answer Correct Answer: B) Assets increase, revenue increase. 3. Net income appears on which of the following statement(s)? A) Balance sheet. B) Income statement. C) Statement of changes in equity. D) Statement of cash flows. E) Both an income statement and statement of changes in equity. Show Answer Correct Answer: E) Both an income statement and statement of changes in equity. 4. Use information in question one A) #23, 000. B) #18, 000. C) #16, 000. D) #13, 000. Show Answer Correct Answer: C) #16, 000. 5. The discount on the debit side of a triple column cashbook is called ..... A) Discount allowed. B) Trade discount. C) Discount received. D) Discount flow. Show Answer Correct Answer: A) Discount allowed. 6. Which category of accounts is category 3? A) Asset. B) Debt. C) Income. D) Owner's equity. Show Answer Correct Answer: D) Owner's equity. 7. Liabilities that are owed for more than 12 months are referred to as: A) Current liabilities. B) Long-term Liabilities. C) Current Assets. D) Equity. Show Answer Correct Answer: B) Long-term Liabilities. 8. For which category of financial liabilities are transaction costs excluded from the initial value, and instead expensed to profit or loss A) Financial Liabilities at amortised cost. B) Financial Liabilities at fair value through profit or loss. Show Answer Correct Answer: B) Financial Liabilities at fair value through profit or loss. 9. On December 31, there is unpaid bank interest for this month which is calculated with an interest rate of 12%. In Trial Balance there is a bank loan account Rp100.000.000 A) Interest Expense (D) Rp2.000.000 Interest Payable (K) Rp2.000.000. B) Interest Expense (D) Rp1.000.000 Interest Payable (K) Rp1.000.000. C) Interest Expense (D) Rp3.000.000 Interest Payable (K) Rp3.000.000. D) Interest Expense (D) Rp4.000.000 Interest Payable (K) Rp4.000.000. Show Answer Correct Answer: B) Interest Expense (D) Rp1.000.000 Interest Payable (K) Rp1.000.000. 10. An advantage of the partnership as form of business organization would be A) Partners do not pay income taxes on their share in partnership income. B) A partnership is bound by the act of the partners. C) A partnership is created by mere agreements of the partners. D) A partnership may be terminated by the death or withdrawal of a partner. Show Answer Correct Answer: C) A partnership is created by mere agreements of the partners. 11. What is business A) An economic activity. B) An economic activity to earn profit. C) A social activity. D) None of them. Show Answer Correct Answer: B) An economic activity to earn profit. 12. The historical cost principles states that: A) Assets should be initially recorded at cost and adjusted when the fair value changes. B) Activities of an entity are to be kept separate and distinct from its owner. C) Assets should be recorded at their cost. D) Only transaction data capable of being expressed in terms of money be included in the accounting records. Show Answer Correct Answer: C) Assets should be recorded at their cost. 13. An agreement between a buyer and a seller about payment for merchandise is called A) Due date. B) Terms of sale. C) Purchase order. D) Time of purchase. Show Answer Correct Answer: B) Terms of sale. 14. What is the primary difference between bookkeeping and accounting? A) Bookkeeping focuses on recording transactions, while accounting involves financial analysis and decision-making. B) Bookkeeping is used for internal purposes, while accounting is primarily for external stakeholders. C) Bookkeeping is a subset of accounting, and the terms are often used interchangeably. D) Bookkeeping is only concerned with tax compliance, while accounting encompasses all financial activities. Show Answer Correct Answer: A) Bookkeeping focuses on recording transactions, while accounting involves financial analysis and decision-making. 15. What is the transaction for rendering services for cash? A) Debit cash, credit unearned revenue. B) Debit cash, credit owner's capital. C) Debit cash, credit revenue. D) Debit cash, credit supplies. Show Answer Correct Answer: C) Debit cash, credit revenue. 16. Each Department is Considered as A) Profit and Loss Centre. B) Profit or Loss Centre. C) Profit Centre. D) Loss Centre. Show Answer Correct Answer: C) Profit Centre. 17. On September 1, 2018, Pine Company issued a note payable to National Bank in the amount of P1, 800, 000, bearing interest at 12% and payable in three equal annual principal payments of P600, 000. On this date, the bank's prime rate was 11%. The first interest and principal payment was made on September 1, 2019. What amount should be reported as interest expense for 2019? A) 144, 000. B) 216, 000. C) 192, 000. D) 132, 000. Show Answer Correct Answer: C) 192, 000. 18. There is no difference between hire purchase and instalment system A) True. B) False. Show Answer Correct Answer: B) False. 19. Book keeping is mainly concerned with A) Recording of financial data relating to business operation. B) Designing the system in recording, classifying, summarizing the data. C) None of this. D) All of the above. Show Answer Correct Answer: A) Recording of financial data relating to business operation. 20. Tor Corp. acquired 80% of Sam Inc. on Jan 5, 2017. The acquisition was made at book value (no amortizations). During 2017, Sam sold goods for $ 450 to Tor at a mark-up of 20% and Tor still had $ 150 on hand at Dec 31, 2017. What is the elimination worksheet entry to eliminate intercompany sales? A) Dr. Sales $ 540Cr. Cost of sales $ 540. B) Dr. Cost of sales $ 540Cr. Inventory $ 540. C) Dr. Cost of sales $ 450Cr. Inventory $ 450. D) Dr. Cost of sales $ 150Cr. Inventory $ 150. E) Dr. Sales $ 450Cr. Cost of sales $ 450. Show Answer Correct Answer: E) Dr. Sales $ 450Cr. Cost of sales $ 450. ← 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