This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 76 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 76 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Trial Balance is a ..... A) A list of all the ledger accounts and their balances extracted from the General Ledger. B) Prepared on a given date, usually at the end of the financial period. C) Prepared after identification and recording of source documents, but before preparation of Income Statement and Balance Sheet. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Which of the following is not a book of original entry? A) Sales journal. B) Purchases account. C) Cash account. D) Return inwards journal. Show Answer Correct Answer: B) Purchases account. 3. Which of the following is not recorded in the Cash at Bank account but already recorded in the Bank Statement? A) Unpresented cheque. B) Direct payment. C) Uncredited cheque. D) Indirect payment. Show Answer Correct Answer: B) Direct payment. 4. The final report for the year is called A) Year report. B) Years report. C) Annual report. D) Final report. Show Answer Correct Answer: C) Annual report. 5. According to IAS 01, financial statements do not include: A) Statements of cash flows. B) Income statement. C) Report on financial status. D) Additional reporting. Show Answer Correct Answer: D) Additional reporting. 6. What type of error is 'an entry is made in the wrong class of account' A) Errors of reversing entries. B) Errors of principle. C) Compensating errors. D) Errors of commission. Show Answer Correct Answer: B) Errors of principle. 7. What is the one asset that can NEVER be depreciated? A) Financing Costs. B) Land. C) Deferred Financing Cost. D) Land Improvements. Show Answer Correct Answer: B) Land. 8. Deposits that can only be withdrawn using checks and giro bills A) Savings Deposits. B) Savings Giro. C) Deposit Savings. D) None of above. Show Answer Correct Answer: B) Savings Giro. 9. Sold equipment by cash $ 700. What is the double entry to record this transaction? A) Debit Cash and Credit Sales. B) Debit Cash and Credit Equipment. C) Debit Equipment and Credit Cash. D) Debit Sales and Credit Equipment. Show Answer Correct Answer: B) Debit Cash and Credit Equipment. 10. ALL OF THE FOLLOWING ARE FINANCIAL LIABILITIES, EXCEPT: A) BONDS PAYABLE. B) NOTES PAYABLE. C) INCOME TAX PAYABLE. D) ACCOUNTS PAYABLE. Show Answer Correct Answer: C) INCOME TAX PAYABLE. 11. A theory is defined as a set of interrelated constructs, definitions, and propositions that present a systematic view of phenomena by specifying relations among variables with the purposed of explaining and predicting the phenomena A) True. B) False. Show Answer Correct Answer: A) True. 12. Depreciation is A) Real. B) Nominal account. C) Personal. D) Deferred Revenue expenditure. Show Answer Correct Answer: B) Nominal account. 13. When the amounts of a transaction must be recorded in a minimum of two accounts- A) Double-entry. B) Debit. C) Credit. D) Accounting equation. Show Answer Correct Answer: A) Double-entry. 14. Joint Venture means two or more parties co-operate on a particular project without forming a permanent business entity. A) True. B) False. Show Answer Correct Answer: A) True. 15. Dividend paid is A) Charge to profit. B) Allocation of profit. C) Both a and b. D) None of the above. Show Answer Correct Answer: B) Allocation of profit. 16. A list of all the account names for a business and their current balances. A) Trial balance. B) Journal. C) General ledger. D) Account title. Show Answer Correct Answer: A) Trial balance. 17. If you receive 25% off an item costing $ 22.00, how much money do you save? A) $ 5.50. B) $ 4.25. C) $ 6.00. D) $ 7.35. Show Answer Correct Answer: A) $ 5.50. 18. Which of the following is WRONG about cash? A) CAsh is the most important asset in running a business. B) Legal tender in the form of banknotes and coins that is not used for the settlement of debt. C) Cash considered the most liquid in a business. D) Defined as resources that consists of currrencies. Show Answer Correct Answer: B) Legal tender in the form of banknotes and coins that is not used for the settlement of debt. 19. Expenses outstanding at end of financial period-added to expense in Income Statement and treated as a current liability in the Statement of Financial position A) Other Receivables. B) Other Payables. Show Answer Correct Answer: B) Other Payables. 20. On April 1 2006 a company purchased a machine for Rp. 60, 000, 000. The machine's useful life is estimated at 4 years, with a residual value of Rp. 20, 000, 000. The method used is the straight line method. The amount of depreciation in 2006 was..... A) Rp. 6.000.000. B) Rp. 7.000.000. C) Rp. 10.000.000. D) Rp. 4.500.000. E) Rp. 7.500.000. Show Answer Correct Answer: E) Rp. 7.500.000. ← 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