This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 70 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A provision for doubtful debts is created A) When debtors become bankrupt. B) When debtors cease to be in business. C) To provide for possible bad debts. D) To write off bad debts. Show Answer Correct Answer: C) To provide for possible bad debts. 2. IASB is replaced by IASC in 2001? A) True. B) False. Show Answer Correct Answer: B) False. 3. One item of information available through a departmental accounting system is the A) Net income or net loss for each department. B) Administrative expenses for each department. C) Total operating expenses for each department. D) Gross profit from operations for each department. Show Answer Correct Answer: D) Gross profit from operations for each department. 4. Rent and rates to be apportioned on the basis of A) Space occupied by department. B) Based on unused area. C) Sales ratio. D) None of above. Show Answer Correct Answer: A) Space occupied by department. 5. When are cash control procedures most important? A) When customers pay using checks or money orders. B) When new employees are being trained to handle cash. C) When cash is being received or disbursed. D) When cash is in the form of bills and coins. Show Answer Correct Answer: C) When cash is being received or disbursed. 6. Total amount of depreciation of an asset cannot exceed its A) Depreciation value. B) Scrap value. C) Market value. D) None of these. Show Answer Correct Answer: A) Depreciation value. 7. The ..... accounting system provides a system of checks and balances A) Single entry. B) Financial entry. C) Double entry. D) Triple entry. Show Answer Correct Answer: C) Double entry. 8. Property was purchased on December 31, 2021 for 90 million baht. The general price index in the country was 60 on that date. On December 31, 2023, the general price index had risen to 270.4. If the entity operates in a hyperinflationary economy, what would be the carrying amount in the financial statements of the property after restatement? A) 405.6 million baht. B) 180.3 billion baht. C) 19.97 trillion baht. D) 320 million baht. Show Answer Correct Answer: A) 405.6 million baht. 9. Which of the following should be the taken into consideration by Company ABC when deciding whether or not to store their client information in external (instead of internal) databases? A) The possible increase in the cost of doing business with your company. B) A possible breach of confidential and private information. C) The possible increase in time that it will take to access your records. D) A need to remember yet another login and password. Show Answer Correct Answer: B) A possible breach of confidential and private information. 10. Pond Corporation uses the fair value method of accounting for its investment in Swan Company. Which one of the following events would affect the Investment in Swan Co. account? A) Investee losses. B) Investee dividend payments. C) An increase in the investee's share price from last period. D) All of the above would affect the Investment in Swan Co. account. Show Answer Correct Answer: C) An increase in the investee's share price from last period. 11. The amount set aside out of profit earned by a company which are not meant for liability or contingencies are A) Dividend. B) Provisions. C) Retained profit. D) Reserve. Show Answer Correct Answer: D) Reserve. 12. Financial Accounting is focused on the ..... financial statements of a company. A) External. B) Internal. Show Answer Correct Answer: A) External. 13. There are 4 owners in a business partnership. The business makes a profit of $ 100. Each owner makes: A) $ 400 profit. B) $ 100 profit. C) $ 25 profit. D) $ 20 profit. Show Answer Correct Answer: C) $ 25 profit. 14. Three column cash book has how many columns? A) Two. B) One. C) Three. D) None of the above. Show Answer Correct Answer: C) Three. 15. A disadvantage of single-entry bookkeeping is that it A) Makes errors hard to spot. B) Is hard to learn. C) Is time-consuming. D) Is the most expensive system to set up. Show Answer Correct Answer: A) Makes errors hard to spot. 16. The time period covered by an accounting report is called ..... A) Accounting period. B) Going concern. Show Answer Correct Answer: A) Accounting period. 17. What is not included in the characteristics of the Federation is..... A) Try together. B) Limited time period. C) Limited liability. D) Have shares/rights in the partnership. Show Answer Correct Answer: C) Limited liability. 18. Total of purchases return book is recorded A) Debit of purchases account. B) Credit of purchases return account. C) Debit of purchases return account. D) Credit of purchases account. Show Answer Correct Answer: B) Credit of purchases return account. 19. A business has Current asset of £100, 000, Non current asset of 50, 000, Current liabilities of £20, 000 what is the net current asset? A) £150, 000. B) £130000. C) £30000. D) £80, 000. Show Answer Correct Answer: D) £80, 000. 20. Cash book records A) All transactions. B) All cash transactions. C) All credit transactions. D) All of the above. Show Answer Correct Answer: B) All cash transactions. ← 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