This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 66 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mr Song bought an existing business assets valued at:Shophouse RM89, 000, Motor Van RM31, 500, Inventory RM13, 700 and Liabilities RM21, 600. He paid RM140, 000 for the business. This means that ..... A) He paid RM15, 800 for the goodwill. B) He paid RM27, 400 for the goodwill. C) He bore a loss of RM15, 800 for the business purchase. D) He made a profit of RM27, 400 for the business purchase. Show Answer Correct Answer: B) He paid RM27, 400 for the goodwill. 2. The accounts of limited liability companies are sometimes filed with the Registrar of Companies A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 3. Which ONE pair of the following items would appear on the same side of the trial balance? A) Drawings and accruals. B) Carriage outwards and prepayments. C) Carriage inwards and rental income. D) Opening inventory and purchase returns. Show Answer Correct Answer: B) Carriage outwards and prepayments. 4. Land is a ..... asset A) Fixed Asset. B) Current Asset. C) Intangible Asset. D) Fictitious asset. Show Answer Correct Answer: A) Fixed Asset. 5. Which statement shows information at a point in time? A) Balance sheet. B) Statement of Profit or Loss. C) Statement of Cash Flows. D) Income Statement. Show Answer Correct Answer: A) Balance sheet. 6. Income from the sale of scrap is usually shown in ..... A) Profit and loss account. B) Trading account. C) Manufacturing account. D) All of the above. Show Answer Correct Answer: A) Profit and loss account. 7. If an expense is made, it has to be debited to A) Final accounts. B) Trial balance. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 8. A daysheet provides complete and up-to-date information about A) Accounts payable. B) Accounts receivable. C) Accounts forwarded to a collection agency. D) Income taxes. Show Answer Correct Answer: B) Accounts receivable. 9. Net income RM 200, 000Depreciation expense RM 30, 000Gain on sale of truck RM 5, 000Proceeds from sale of truck RM 8, 000Decrease in account receivable RM 10, 000 What amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement? A) RM 225, 000. B) RM 235, 000. C) RM 253, 000. D) RM 218, 000. Show Answer Correct Answer: B) RM 235, 000. 10. How many countries are currently using the IFRS? A) 138 and United States are one of them. B) 138 and United States is not one of them. Multinational Businesses are barred from using them. C) 138 and United States is not currently one of them. Multinational business do use IFRS anyway. D) All the countries are using GAAP instead of IFRS. Show Answer Correct Answer: C) 138 and United States is not currently one of them. Multinational business do use IFRS anyway. 11. A hedge of the exposure to changes in the fair value of a recognized asset or liability, or an unrecognized firm commitment, is classified as a A) Cash flow hedge. B) Receivable hedge. C) Hedge fund. D) Fair value hedge. Show Answer Correct Answer: D) Fair value hedge. 12. Which Italian mathematician and Franciscan friar is often referred to as the "Father of Accounting" for his contributions to double-entry bookkeeping in the 15th century? A) Niccolo Machiavelli. B) Luca Pacioli. C) Galileo Galilei. D) Leonardo da Vinci. Show Answer Correct Answer: B) Luca Pacioli. 13. A statement of profit and loss is another name for: A) The income statement. B) The balance sheet. C) The statement of cash flows. D) The statement of changes in equity. E) The accounting equation. Show Answer Correct Answer: A) The income statement. 14. ALL OF THE FOLLOWING MAYBE RECOGNIZED AS A BIOLOGICAL ASSET, EXCEPT: A) COCONUT TREE. B) BEARER ANIMALS. C) MILKING COWS. D) AGRICULTURAL PRODUCE GROWING ON A BEARER PLANT. Show Answer Correct Answer: A) COCONUT TREE. 15. Sales book is meant for recording all A) Credit sales. B) Cash sales. C) Credit purchases. D) Cash transactions. Show Answer Correct Answer: A) Credit sales. 16. A confirmation letter sent by a public accountant to a debtor where the debtor is asked to send a reply directly to the public accountant is called..... A) Negative confirmation. B) Positive confirmation. C) List of receivable balances. D) . List of accounts receivable ages. Show Answer Correct Answer: A) Negative confirmation. 17. Which of the following is not a type of General Insurance? A) Fire insurance. B) Marine Insurance. C) Accident insurance. D) Life insurance. Show Answer Correct Answer: D) Life insurance. 18. The cash over and short account A) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts and is not necessary in a computerized accounting system. B) Is not necessary in a computerized accounting system. C) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts. D) Is used to record a credit balance in the cash account. E) None of these. Show Answer Correct Answer: C) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts. 19. When goods are returned to the Supplier, a Credit Note is raised and sent to the Supplier A) True. B) False. Show Answer Correct Answer: B) False. 20. The financial statement that reports assets, liabilities, and equity is A) Income statement. B) Retained earnings statement. C) Statement of financial position. D) Statement of cash flow. Show Answer Correct Answer: C) Statement of financial position. ← 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