This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 79 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 79 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Receipts and Payments Account highlights total income and expenditure A) True. B) False. Show Answer Correct Answer: B) False. 2. A member of BOA must be a duly registered Certified Public Accountant with at least ten (10) years of work experience in A) Commerce & Industry. B) Academe. C) Public Accountancy. D) Any scope of practice of accountancy. Show Answer Correct Answer: D) Any scope of practice of accountancy. 3. Return inwards means A) Purchase return. B) Sales return. C) Proportionate sales. D) Expected sales. Show Answer Correct Answer: B) Sales return. 4. Wages incurred by departmental workers of a factory in installing a new machinery is a revenue expenditure. A) True. B) False. Show Answer Correct Answer: B) False. 5. The Accounting Equation A) Revenue-Expenses = Profit/Loss. B) Assets + Liabilities = Owner's Equity. C) Revenue + Expenses = Profit/Loss. D) Assets = Liabilities + Owner's Equity. Show Answer Correct Answer: D) Assets = Liabilities + Owner's Equity. 6. What financial statement helps you plan your expenses Before you have spent any money? A) Statement of Cash Flows. B) Income Statement. C) Balance Sheet. D) Budget. Show Answer Correct Answer: D) Budget. 7. At the time the insurance payment was recorded in the journal as an insurance expense of IDR 4, 500, 000.00, the maturity date was IDR 3, 200, 000.00 on December 31, IDR 3, 200, 000.00. So the adjusting journal is..... A) Insurance expense Rp. 4, 500, 000 Prepaid insurance Rp. 4, 500, 000. B) Prepaid insurance Rp. 4, 500, 000 Insurance expense Rp. 4, 500, 000. C) Insurance expense Rp. 1, 300, 000 Prepaid insurance Rp. 1, 300, 000. D) Prepaid insurance Rp. 3, 200, 000 Insurance expense Rp. 3, 200, 000. E) Prepaid insurance Rp. 1, 300, 000 Insurance expense Rp. 1, 300, 000. Show Answer Correct Answer: E) Prepaid insurance Rp. 1, 300, 000 Insurance expense Rp. 1, 300, 000. 8. Which of these is an example of a detective control procedure? A) Periodic reconciliations. B) Separation of duties. C) Approval authority. D) Standardized documentation. Show Answer Correct Answer: A) Periodic reconciliations. 9. Which of the following statements is/are true?1-The IFRS Interpretations Committee is a forum for the IASB to consult with the outside world. 2-The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB. 3-One of the objectives of the IFRS Foundation is to bring about convergence of national accounting standards and IFRSs. A) 1 and 3 only. B) 2 only. C) 2 and 3 only. D) 3 only. Show Answer Correct Answer: D) 3 only. 10. An adjusting entry was made on December 31, 2020, to accrue salaries expense of $ 1, 200. Which of the following entries would be prepared to record the next payment of salaries, on January 5, 2021, in the amount of $ 3, 000? A) Debit Salaries Payable1, 200 Debit Salaries Expense1, 800 Credit Cash 3, 000. B) Debit Salaries Expense3, 000 Credit Cash 3, 000. C) Debit Salaries Expense1, 200 Credit Salaries Payable 1, 200. D) Debit Salaries Payable3, 000 Credit Cash 3, 000. E) Debit Salaries Payable1, 200 Credit Cash 1, 200. Show Answer Correct Answer: A) Debit Salaries Payable1, 200 Debit Salaries Expense1, 800 Credit Cash 3, 000. 11. What is the fundamental principle of double-entry accounting? A) Double-entry accounting only involves recording expenses and not income. B) The fundamental principle of double-entry accounting is to only record one side of a transaction. C) For every debit entry, there must be an equal credit entry. D) For every debit entry, there must be an equal debit entry. Show Answer Correct Answer: C) For every debit entry, there must be an equal credit entry. 12. ..... is a document drawn up by the partners, which contains the rules and regulations guiding the business A) Partnership. B) Account. C) Document. D) Deed of partnership. Show Answer Correct Answer: D) Deed of partnership. 13. Assets =..... + Capital A) Owners. B) Debit. C) Liabilities. D) Credits. Show Answer Correct Answer: C) Liabilities. 14. Pet owns 90% of Set, and the acquisition was made at book value (no amortizations). During the current year, Set reported $ 7, 000 income. Pet sold goods to Set during the year for $ 10, 000 including a profit of $ 5, 000. Set still holds 40% of these goods at the end of the year. What is the Pet's journal entry to record income from Set? A) Dr. Investment in Set $ 4, 300Cr. Income from Set $ 4, 300. B) Dr. Investment in Set $ 6, 300Cr. Income from Set $ 6, 300. C) Dr. Sales $ 10, 000Cr. Cost of goods sold $ 10, 000. D) Dr. Cost of goods sold $ 2, 000Cr. Inventory $ 2, 000. E) Dr. Investment in Set $ 9, 000Cr. Income from Set $ 9, 000. Show Answer Correct Answer: A) Dr. Investment in Set $ 4, 300Cr. Income from Set $ 4, 300. 15. When a company receives applications for more number of shares than what is issued, the situation is called as ..... A) Higher Subscription. B) Over Subscription. C) Under Subscription. D) Lower Subscription. Show Answer Correct Answer: B) Over Subscription. 16. Calculate the total amount on the credit side of the trial balance A) N4, 000. B) Na, 000. C) Nsht, 000. D) N1, 000. Show Answer Correct Answer: B) Na, 000. 17. A system to identify, measure, and communicate all financial activities ..... A) Assets. B) Liabilities. C) Accounting. D) SMART Goals. Show Answer Correct Answer: C) Accounting. 18. Explain the difference between the income statement and the balance sheet. A) The income statement shows the company's financial position at a specific point in time, while the balance sheet provides a snapshot of the company's financial performance over a specific period. B) The income statement only includes expenses, while the balance sheet only includes revenues. C) The income statement shows the company's financial performance over a specific period, while the balance sheet provides a snapshot of the company's financial position at a specific point in time. D) The income statement and the balance sheet are the same and can be used interchangeably. Show Answer Correct Answer: C) The income statement shows the company's financial performance over a specific period, while the balance sheet provides a snapshot of the company's financial position at a specific point in time. 19. "A future benefit exists for the company as it is used in operations." A) Liabilities. B) Assets. C) Owner's Equity. D) Notes Payable. Show Answer Correct Answer: B) Assets. 20. ..... occurs when a creditor is authorized to ask payment from the customer's bank A) Discount. B) Standing order. C) Direct debit. D) Dishonoured cheque. Show Answer Correct Answer: C) Direct debit. ← 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