This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 81 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 81 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following are inflows from investment cash flows, except..... A) Receipts from sales of securities from securities companies. B) Receipts from the sale of debt instruments or cash. C) Cash receipts from advance payments. D) Receipts from sales of fixed assets and other long-term assets. Show Answer Correct Answer: A) Receipts from sales of securities from securities companies. 2. OBJECTIVITY INCLUDES WHAT CONCEPT A) CLASSIFICATION. B) CONSERVATISM. C) VERIFIABILITY. D) SUMMARIZATION. Show Answer Correct Answer: C) VERIFIABILITY. 3. When a limited company takes over another limited company, if the purchase consideration is greater that the net assets of the business purchased, the excess is known as ..... A) Premium. B) Goodwill. C) Purchase Profit. D) Capital Reserve. Show Answer Correct Answer: B) Goodwill. 4. What is a ledger? A) A record of summarized transactions. B) A record of classified transactions. C) Only a is true. D) Only b is true. Show Answer Correct Answer: D) Only b is true. 5. Which of the following items has correctly been included in Hatton's revenue for the year? A) $ 2 million in relation to a fee negotiated for an advertising contract for Rees, one of Hatton's clients. Hatton acted as an agent during the deal and is entitled to 10% commission. B) $ 500, 000 relating to a sale of specialised equipment on 31 December 20X1. The full sales value was $ 700, 000 but $ 200, 000 relates to servicing that Hatton will provide over the next 2 years, so Hatton has not included that in revenue this year. C) $ 800, 000 relating to a sale of some surplus land owned by Hatton. D) $ 1 million in relation to a sale to a new customer on 31 December 20X1. Control passed to the customer on 31 December 20X1. The $ 1 million is payable on 31 December 20X3. Interest rates are 10%. Show Answer Correct Answer: B) $ 500, 000 relating to a sale of specialised equipment on 31 December 20X1. The full sales value was $ 700, 000 but $ 200, 000 relates to servicing that Hatton will provide over the next 2 years, so Hatton has not included that in revenue this year. 6. The purchase of a new delivery truck to be used in the business. A) Operating. B) Investing. C) Financing. D) Supplemental. Show Answer Correct Answer: B) Investing. 7. Which of the following represents the excess of issue price over nominal price of the shares A) Profit of the company. B) Share Capital. C) Discount on issue of shares. D) Premium on issue of shares. Show Answer Correct Answer: D) Premium on issue of shares. 8. The economic effect of an expense is incurred when the benefit expires or is used up, not when cash is paid. A) True. B) False. Show Answer Correct Answer: A) True. 9. Supplier is a person who ..... to the company A) Sells goods. B) Purchase goods. C) None of these. D) None of above. Show Answer Correct Answer: A) Sells goods. 10. Financial accounting is ..... A) A language which communicates economic information to interested parties. B) Is a financial type of accounting information and the reporting of the results and financial position of a business. C) Accumulation of accounting information for a company's internal users. D) Accumulation of accounting information for a company's external users. Show Answer Correct Answer: B) Is a financial type of accounting information and the reporting of the results and financial position of a business. 11. Who review, revise, amend, and defer approved accounting standards? A) MASB. B) State bank (central bank). C) Securities commission. D) Malaysian stock exchange. Show Answer Correct Answer: A) MASB. 12. Trading Account is prepared to ascertain A) Cost of Goods Old. B) Net Profit. C) Gross Profit. D) Opening Stock. Show Answer Correct Answer: C) Gross Profit. 13. As of 2018, how many chapters have the content and scope of the KKLT been compiled by the IASB? A) 2. B) 4. C) 6. D) 5. Show Answer Correct Answer: B) 4. 14. Which is not a part of Accounting System? A) Journal Books. B) Ledger Books. C) Trial Balance. D) Slam Book. Show Answer Correct Answer: D) Slam Book. 15. Copyrights, Patents and Trademarks are, A) Current assets. B) Fixed assets. C) Intangible assets. D) Investments. Show Answer Correct Answer: C) Intangible assets. 16. The process of recording financial data upto trial balance is A) Book keeping. B) Summarsing. C) Classifying. D) Analyzing. Show Answer Correct Answer: A) Book keeping. 17. Which of the following legal forms of organization is most expensive to organize? A) Sole proprietorships. B) Partnerships. C) Corporations. D) Limited partnership. Show Answer Correct Answer: C) Corporations. 18. Consignee is the person who sends goods to agents. A) True. B) False. Show Answer Correct Answer: B) False. 19. Long term loans are: A) Current liabilities. B) Non-current liabilities. C) Non-current assets. D) Current assets. Show Answer Correct Answer: B) Non-current liabilities. 20. Capitalizing a cost refers to: A) Adding the cost to the asset account. B) Expensing the cost as it is incurred. C) Disclosing the cost in the footnotes. D) Depreciating the asset. Show Answer Correct Answer: A) Adding the cost to the asset account. ← 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