This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 67 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 67 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Intangible assets are physical items such as buildings, machinery, and computers. A) True. B) False. Show Answer Correct Answer: B) False. 2. If Capital amounts to $ 2 550 and Liabilities amounts to $ 400, what is the amount for Assets? A) $ 2950. B) $ 2150. C) $ 2800. D) $ 3050. Show Answer Correct Answer: A) $ 2950. 3. Financial accounting reports to the ..... after the completion of the accounting year.A. internal managementB. external partiesC. MediaD. rivals A) Internal management. B) External parties. C) Media. D) Rivals. Show Answer Correct Answer: B) External parties. 4. Which of the following should be recorded under non-current liability in the SOFP? A) Accounts Payable. B) Salaries Payable. C) Long-term Debt. D) Prepaid Expenses. Show Answer Correct Answer: C) Long-term Debt. 5. What is meant by current liabilities? A) Fines to be paid by the company. B) Debts that must be paid by the company for more than one year. C) Debts that must be paid by the company in less than a year. D) None of above. Show Answer Correct Answer: C) Debts that must be paid by the company in less than a year. 6. Which of the following is the correct definition for the term transactions? A) A list of items in a business. B) A summary of activities in a business. C) People who operate a business. D) A program used by the business. Show Answer Correct Answer: B) A summary of activities in a business. 7. "Cost of an asset/useful life (years)" is the formula for: A) Diminishing Balance Depreciation Method. B) Sum of Years' Digits Depreciation Method. C) Straight Line Depreciation Method. D) Double Declining Balance Depreciation Method. Show Answer Correct Answer: C) Straight Line Depreciation Method. 8. A compound journal entry A) Has equal debits and credits. B) Generally extends to several pages. C) Does not require narration. D) All of these. Show Answer Correct Answer: A) Has equal debits and credits. 9. The purpose of preparing a departmental profit and loss account for a firm is ..... A) To show the relative financial performance of different sections of the firm. B) To estimate the firm's.future cash requirements. C) To ensure that all likely bad debts are provided for. D) To ensure that discounts allowed by the firm do not exceed discounts received by it. Show Answer Correct Answer: A) To show the relative financial performance of different sections of the firm. 10. Not the cause of the difference in the cash balance at the bank A) Deposit In Transit. B) Outstanding Check. C) Error. D) Bank Service Charge. Show Answer Correct Answer: D) Bank Service Charge. 11. "Bank overdraft" is an item which is classified into what type? A) Current assets. B) Non-current assets. C) Current liabilities. D) Non-current liabilities. Show Answer Correct Answer: C) Current liabilities. 12. Non-Departmental items of expenses are charged to A) Departments on the basis of sales. B) General Profit and Loss account. C) Departments based on fixed assets employed. D) Capital fund. Show Answer Correct Answer: B) General Profit and Loss account. 13. The ..... concept states that businesses should be treated as if they will continue to stay in business. A) Going concern. B) Business entity. Show Answer Correct Answer: A) Going concern. 14. If a company is successful in acquiring several large buildings at the end of the year, what is the effect on the total asset turnover ratio? A) A. The ratio will increase. B) B. The ratio will not change. C) C. The ratio will decrease. D) Either a or c. Show Answer Correct Answer: C) C. The ratio will decrease. 15. THE PERMISSION REQUIRED FROM ..... IN THE CASE OF INTERNAL RECONSTRUCTION A) BMC. B) COURT. C) LIGHT OFFICE. D) RAILWAY. Show Answer Correct Answer: B) COURT. 16. This concept requires asset to be shown at the price it has been acquired, which can be verified from the supporting documents. A) Historical Cost Concept. B) Accounting Period Concept. C) Revenue Recognition Concept. D) Matching Concept. Show Answer Correct Answer: A) Historical Cost Concept. 17. *The balance sheet is based on the fundamental equation: A) Assets = Liabilities+ Retained Earnings. B) Assets = Liabilities+ Profits. C) Assets = Liabilities + Share Capital. D) Assets = Liabilities + Shareholders' Equity. Show Answer Correct Answer: D) Assets = Liabilities + Shareholders' Equity. 18. Bank statement is prepared by ..... A) Bank. B) Account holder. C) Cashier. D) Manager. Show Answer Correct Answer: A) Bank. 19. ALL OF THE FOLLOWING ARE THE CRITERIA FOR AN ASSET TO BE CLASSIFIED AS CURRENT, EXCEPT: A) REALIZED, SOLD, OR CONSUMED BEYOND THE NORMAL OPERATING CYCLE. B) REALIZED WITHIN 12 MONTHS AFTER THE END OF THE REPORTING PERIOD. C) HELD FOR TRADING. D) CASH OR CASH EQUIVALENTS. Show Answer Correct Answer: A) REALIZED, SOLD, OR CONSUMED BEYOND THE NORMAL OPERATING CYCLE. 20. Which of the following is a correct journal entry for the payment of a loan? A) Debit Interest Expense, Credit Cash. B) Debit Cash, Credit Notes Payable. C) Debit Cash, Credit Interest Expense. D) Debit Notes Payable, Credit Cash. Show Answer Correct Answer: C) Debit Cash, Credit Interest Expense. ← 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