This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 68 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 68 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a subsidiary book? A) Sales day book. B) Purchases day book. C) General journal. D) Trial balance. Show Answer Correct Answer: D) Trial balance. 2. Bar purchased 10 percent of Liz Company's 100, 000 shares of common stock on January 2 for $ 100, 000. On December 31, Bar purchased an additional 20, 000 shares of Liz for $ 300, 000. There was no goodwill as a result of either acquisition, and Liz had not issued any additional stock during the year. Liz reported earnings of $ 600, 000 for the year. What amount should Bar report in its December 31 balance sheet as investment in Liz? A) $ 340, 000. B) $ 400, 000. C) $ 460, 000. D) $ 580, 000. Show Answer Correct Answer: C) $ 460, 000. 3. Financial Accounting rule A) Thumb rules. B) Golden rules. C) Financial rule. D) None of above. Show Answer Correct Answer: B) Golden rules. 4. ..... is the amount that flows into retained earnings on the balance sheet, after deductions for any dividends. A) EBT. B) EBIT. C) EBITDA. D) EAT. Show Answer Correct Answer: D) EAT. 5. Which of the following are true? I. The main purpose of financial reporting is to provide information aimed at running a business more efficiently. II. The principal function of financial accounts is to provide information to parties external to a business. III. The term "reporting entity" may be used to describe a group of companies A) I and II only. B) I and III only. C) II and III only. D) I, II, and III. Show Answer Correct Answer: C) II and III only. 6. An account that shows the estimated amount owed on the warranties a business offers. A) Warranty. B) Liability. C) Warranty expense. D) Warranty payable. Show Answer Correct Answer: D) Warranty payable. 7. In Proprietorship business, Income-tax payable is shown as a liability in Balance Sheet. A) True. B) False. Show Answer Correct Answer: B) False. 8. Preference Shareholders are A) Creditors. B) Owners. C) Customers. D) None of these. Show Answer Correct Answer: B) Owners. 9. The accounting equation may be expressed as A) Assets = Equities-Liabilities. B) Assets = Revenues-Liabilities. C) Assets + Liabilities = Owner's Equity. D) Assets = Liabilities + Owner's Equity. Show Answer Correct Answer: D) Assets = Liabilities + Owner's Equity. 10. The nature of an asset is best described as A) An economic resources that's expected to benefit future operations. B) Something with physical form that's valued at cost in the accounting records. C) Something owned by a business that has a ready market value. D) An economic resource representing cash or the right to receive cash in the future. Show Answer Correct Answer: A) An economic resources that's expected to benefit future operations. 11. Which of the following items cannot be considered as a revenue? A) Discount received. B) Commission received. C) Interest on loan. D) Dividend on investment. Show Answer Correct Answer: C) Interest on loan. 12. Which Malaysian government agency is responsible for regulating and supervising financial institutions, including banks and insurance companies? A) Securities Commission Malaysia (SC). B) Malaysian National Bank. C) Ministry of Finance Malaysia. D) Bursa Malaysia. Show Answer Correct Answer: B) Malaysian National Bank. 13. Which account increases equity? A) Expenses. B) Withdrawals. C) Liability. D) Revenues. Show Answer Correct Answer: D) Revenues. 14. Soft Water Company gathered the following reconciling information in preparing its July bank reconciliation:Cash balance per books, 7/31 RM23, 500Deposits in transit 1, 200Notes receivable and interest collected by bank 4, 800Bank charge for check printing 80Outstanding checks 8, 000NSF check 860The adjusted cash balance per books on July 31 is A) RM19, 360. B) RM20, 560. C) RM27, 360. D) RM28, 560. Show Answer Correct Answer: C) RM27, 360. 15. Rules for the way financial statements should be prepared, that help guide businesses in accounting procedures. A) GAAP. B) Balance Sheet. C) Income Statement. D) Accrual Accounting. Show Answer Correct Answer: A) GAAP. 16. Which of the following is represented both to the FRSC and the AASC? A) None of these. B) Bureau of Internal Revenue. C) Insurance Commission. D) Central Bank of the Philippines. Show Answer Correct Answer: D) Central Bank of the Philippines. 17. Financial statement has relevance if have 3 values following this, except ..... A) Confirmatory. B) Materiality. C) Predictive. D) Comparability. Show Answer Correct Answer: D) Comparability. 18. The formula for profit margin is? A) Net SalesNet Income. B) Net IncomeNet Sales. C) Net SalesNet Expense. D) Net Income Net Assets. Show Answer Correct Answer: B) Net IncomeNet Sales. 19. Accruing Uncollected Revenue What would be the impact on net income? A) Net income would decrease. B) Net income would remain constant. C) Net income would increase. D) All of the above. Show Answer Correct Answer: C) Net income would increase. 20. Accounting processes are broadly divided into two main categories:financial accounting and management accounting. A) True. B) False. Show Answer Correct Answer: A) True. ← 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