This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 65 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Non-for-profit organisations prepare ..... A) Trading account. B) Trading &profit &loss account. C) Income and Expenditure account. D) Profit and loss account. Show Answer Correct Answer: C) Income and Expenditure account. 2. ..... is the cost of transportation charged on goods purchased(a) A) Carriage Outwards. B) Carriage Inwards. C) Returns Outwards. D) Returns Inwards. Show Answer Correct Answer: B) Carriage Inwards. 3. In the double-entry system, which account type is debited when recording an increase in assets A) Revenue accounts. B) Expense accounts. C) Liability account s. D) Asset accounts. Show Answer Correct Answer: D) Asset accounts. 4. (a) ..... :A document sent to a customer by a company stating the fixed price that would be charged to produce or deliver goods or services. A) Quotation. B) Purchase order. C) Receipt. D) Debit advice. E) Statement. Show Answer Correct Answer: A) Quotation. 5. Nobes and Parker (2006) argue that there is no ideal model of enforcement of accounting standards which fits all countries as it depends on the overall regulatory system of the country. Two types of mechanisms, ....., can be used to enforce accounting regulations, helping to ensure quality in the financial reporting practices of a country (Craig & Diga, 1996; Saudagaran & Diga, 2000). A) Positive and negative. B) Conservatism and pluralism. C) Proactive and energetic. D) Preventive and punitive. Show Answer Correct Answer: D) Preventive and punitive. 6. Written records that summarize that results of financial transactions affecting a business and report its current financial position. A) Accounting cycle. B) Financial Reports. C) Business finance. D) Accounting finance. Show Answer Correct Answer: B) Financial Reports. 7. Which of the following is a floating income security? A) Bond. B) Preference share. C) Equity share. D) Bond. Show Answer Correct Answer: C) Equity share. 8. Find the term to match the meaning below:Money the business receives from customers from selling their goods and services A) Gross profit. B) Sales revenue. C) Sales returns. D) Warehouse expenses. Show Answer Correct Answer: B) Sales revenue. 9. WHICH STATEMENT IS CORRECT? A) THE BOARD OF ACCOUNTANCY IS COMPOSED OF FIFTEEN MEMBERS WITH A CHAIRMAN. B) THE FINANCIAL REPORTING STANDARD COUNCIL SHALL HAVE A CHAIRMAN WHO HAD BEEN OR PRESENTLY A SENIOR PRACTITIONER IN PUBLIC ACCOUNTANCY. C) A MEMBER OF THE AUDITING AND ASSURANCE STANDARD COUNCIL MUST BE A DULY REGISTERED CERTIFIED PUBLIC ACCOUNTANT WITH AT LEAST TEN YEARS OF WORK EXPERIENCE IN THE PRACTICE OF PUBLIC ACCOUNTANCY. D) COMPLIANCE WITH THE PHILIPPINES INTERPRETATION COMMITTEE IMPLEMENTATION GUIDANCE IS REQUIRED FOR THE FAIR PRESENTATION OF FINANCIAL STATEMETN IN ACCORDANCE WITH PFRS. Show Answer Correct Answer: D) COMPLIANCE WITH THE PHILIPPINES INTERPRETATION COMMITTEE IMPLEMENTATION GUIDANCE IS REQUIRED FOR THE FAIR PRESENTATION OF FINANCIAL STATEMETN IN ACCORDANCE WITH PFRS. 10. Another name for the balance sheet is A) Statement Of Operations. B) Statement Of Financial Position. C) Statement of Profit or Loss. D) Statements Of Shareholders' Equity. Show Answer Correct Answer: B) Statement Of Financial Position. 11. The cost a company pays to create and develop a product. A) Copyright. B) Trademark. C) Research and Development. D) Depletion. Show Answer Correct Answer: C) Research and Development. 12. Reduction in the ability of a fixed asset to provide service over time. A) Accrual accounting. B) Deferrals (revenue/expenses). C) GAAP. D) Depreciation. Show Answer Correct Answer: D) Depreciation. 13. A debt has been written off as bad even if there is still a chance that debtor may eventually pay it. What concept is being applied? A) Prudence. B) Going concern. C) Materiality. D) Substance over form. Show Answer Correct Answer: A) Prudence. 14. ACCOUNTING EQUATION is A) Assets = Equities. B) Assets = Internal Equities + External Equities. C) Assets = Capital + Liabilities. D) All of the above. Show Answer Correct Answer: D) All of the above. 15. What is the main purpose of GAAP? A) Create fairness. B) Create stability. C) Create financial statements that are useful. D) Reduce crime. Show Answer Correct Answer: C) Create financial statements that are useful. 16. Financial accounting provides accounting information to the ..... though the information is useful for internal purposes also A) External users. B) Internal users. C) Company. D) Competitors. Show Answer Correct Answer: A) External users. 17. The maximum number of members excluding persons who are employees of the company is ..... for a private company A) 10. B) 6. C) 5. D) 12. Show Answer Correct Answer: C) 5. 18. The amounts incurred in the process of earning revenue. A) Assets. B) Liabilities. C) Owner's Equity. D) Expenses. Show Answer Correct Answer: D) Expenses. 19. ..... = Sales revenue-Cost of goods A) Gross Profit. B) Revenue. Show Answer Correct Answer: A) Gross Profit. 20. The type of asset which has no physical existence but has rights as their value are known as? A) Fixed assets. B) Intangible assets. C) Investments. D) Cureent assets. Show Answer Correct Answer: B) Intangible assets. ← 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