This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When is the origin of modern accounting? A) In 1894. B) In 1694. C) In 1494. D) In 1794. Show Answer Correct Answer: C) In 1494. 2. Large corporations must follow the ..... basis of accounting. A) Cash. B) Accrual. Show Answer Correct Answer: B) Accrual. 3. Which of the following is not an activity listed in the statement of cash flows? A) Funding Activities. B) Investing Activities. C) Financing Activities. D) Operating Activities. Show Answer Correct Answer: A) Funding Activities. 4. Agreement between partners is contained in the partnership A) Act. B) Deed. C) Accord. D) Deal. Show Answer Correct Answer: B) Deed. 5. When a company issues shares to the vendor for the Asset purchase, the issue is termed as ..... A) Issue of shares for Cash. B) Issue of shares for consideration other than cash. C) Issue of shares for ESOP. D) None of the Above. Show Answer Correct Answer: B) Issue of shares for consideration other than cash. 6. Compensation paid to employees who are retrenched is Capital expenditure. A) True. B) False. Show Answer Correct Answer: B) False. 7. Which is the formula for the debt ratio? A) Total Expenses Total Notes Payable. B) Total AssetsTotal Liabilities. C) Total Notes PayableTotal Cash. D) Total LiabilitiesTotal Assets. Show Answer Correct Answer: D) Total LiabilitiesTotal Assets. 8. The total amount of money owed to the creditors of a business. A) Accounts Payable. B) Accounts Receivable. C) Account Balance. D) Account Title. Show Answer Correct Answer: A) Accounts Payable. 9. Pre acquisition profit in subsidiary company is considered as A) Capital profit. B) Revenue profit. C) Goodwill. D) Reserve. Show Answer Correct Answer: A) Capital profit. 10. If a business has a net loss for the period, expenses should be reported before revenues on the income statement. A) True. B) False. Show Answer Correct Answer: B) False. 11. Sold goods worth list price of Rs. 8, 000 at 10% trade discount and 2% cash discount. 25% received at the time of transaction only. The amount posted to discount account will be: A) Rs. 36 on debit side. B) Rs. 144 on Credit side. C) Rs. 144 on debit side. D) Rs. 40 on credit side. Show Answer Correct Answer: A) Rs. 36 on debit side. 12. The recording of all the sales and purchases in accounting books in term of Ringgit Malaysia is in line with the concept of ..... A) Historical cost. B) Consistency. C) Materiality. D) Monetary measurement. Show Answer Correct Answer: D) Monetary measurement. 13. Section 24 of FRS 102 deals with government grants. Under this section which of the following statements is correct: A) The accruals model only applies to capital grants. B) Under the performance model a grant that imposes future performance related conditions on the entity is recognised in income only when the performance related condition is met;. C) Under the performance model grants received before the revenue recognition criteria are satisfied are recognised as an asset;. D) A grant is recognised in income even if there is no reasonable assurances that conditions on which it is based will be met;. Show Answer Correct Answer: B) Under the performance model a grant that imposes future performance related conditions on the entity is recognised in income only when the performance related condition is met;. 14. Which of the following statements about basic assumptions is correct A) Basic assumptions are the same as accounting principles. B) The economic entity assumptions states that there should be a particular unit of accountability. C) The monetary unit assumption enables accounting to measure employee morale. D) Partnerships are not economic entities. Show Answer Correct Answer: B) The economic entity assumptions states that there should be a particular unit of accountability. 15. In the accounts of a manufacturing firm, the cost of direct labour ..... A) Should be included as part of the prime cost. B) Should be included in factory overheads. C) Should be included in the Profit and Loss Account. D) Should be divided between the prime cost and the cost of factory overheads. Show Answer Correct Answer: A) Should be included as part of the prime cost. 16. When complete sequence of accounting procedure is done, which happens frequently and repeatedly in same directions then it is called an accounting cycle. A) True. B) False. Show Answer Correct Answer: A) True. 17. Statement showing summary of all the assets and liabilities of a business is known as ..... ? A) Journal Book. B) Ledger Book. C) Trial Balance. D) Balance Sheet. Show Answer Correct Answer: D) Balance Sheet. 18. Cash Sales Recording Journal A) Sales Journal. B) Purchasing Journal. C) Cash Receipts Journal. D) Cash Disbursement Journal. Show Answer Correct Answer: C) Cash Receipts Journal. 19. Regulations can help promote what? A) Standardization. B) Honest behavior. C) Both Standardization and Honest behavior. D) None of the above. Show Answer Correct Answer: C) Both Standardization and Honest behavior. 20. Subscriptions in arrears is treated in the balance sheet as a club as A) Current liability. B) Intangible assets. C) Fictitious asset. D) Current assee. Show Answer Correct Answer: D) Current assee. ← 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 9Financial Accounting Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books