This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 82 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 82 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The unfavourable balance of profit and loss account should be A) Subtracted from liabilities. B) Subtracted from capital. C) Subtracted from current assets. D) Added in liabilities. Show Answer Correct Answer: B) Subtracted from capital. 2. Assets = P410, 000 ; Capital = P139, 232. How much is the Liability? A) P 549, 232. B) P 277, 068. C) P 270, 768. D) P 594, 232. Show Answer Correct Answer: C) P 270, 768. 3. Treatment of Prepayments in Financial statements A) Decrease Income, increase Current asset. B) Decrease expenses, increase Current asset. C) Decrease expenses, increase Current Liability. D) Increase expenses, increase Current asset. Show Answer Correct Answer: C) Decrease expenses, increase Current Liability. 4. WHICH STATEMENT IS INCORRECT REGARDING CASH AND CASH EQUIVALENTS? A) CASH AND CASH EQUIVALENTS ARE FINANCIAL ASSETS. B) CASH COMPRISES CASH ON HAND AND DEMAND DEPOSITS. C) CASH EQUIVALENTS ARE HELD FOR INVESTMENT PURPOSES. D) AN EQUITY SHALL DISCLOSE THE COMPONENTS OF CASH AND CASH EQUIVALENTS. Show Answer Correct Answer: C) CASH EQUIVALENTS ARE HELD FOR INVESTMENT PURPOSES. 5. Which one of the following industries uses bauxite as a raw material? A) Aluminum. B) Cement. C) Jute. D) Steel. Show Answer Correct Answer: A) Aluminum. 6. Debits will increase liability balances A) True. B) False. Show Answer Correct Answer: B) False. 7. The recognized accounting body in Nigeria is A) ACCA. B) IPSAS. C) CIPM. D) ICAN. Show Answer Correct Answer: D) ICAN. 8. Duality Every asset should have A) A non monetary value. B) Tangible and intangible qualities. C) Monetary cost and future benefit. D) An adequate monetary value. Show Answer Correct Answer: C) Monetary cost and future benefit. 9. Calculate gross profit from following figures:Cost of goods sold 70800Sales RS. 130200 A) 69400. B) 79400. C) 59400. D) 29400. Show Answer Correct Answer: C) 59400. 10. The originator of Double Entry System A) Lucas Pacioli. B) Marshall. C) Pickles. D) Batliboi. Show Answer Correct Answer: A) Lucas Pacioli. 11. Recording of Financial Transactions in Chronological Order is Known as ..... ? A) Ledger Posting. B) Journal Entry. C) Trial Balance. D) Balance Sheet. Show Answer Correct Answer: B) Journal Entry. 12. The basic elements of financial statements include: A) Asset; equity; income; expense. B) Asset; liabilities must pay; equity; income; expense. C) Asset; income; expense. D) Asset; liabilities must pay; equity; expense. Show Answer Correct Answer: B) Asset; liabilities must pay; equity; income; expense. 13. On January 1 2018 a company purchased a machine for Rp. 10, 000, 000. The machine's useful life is estimated at 4 years, with no residual value. It is estimated that the machine can be used for 100, 000 hours. During 2018 the machine was used for 5, 000 hours. The hourly depreciation rate is..... A) Rp. 400/Hour. B) Rp. 600/Hour. C) Rp. 500/Hour. D) Rp. 100/Hour. E) Rp. 750/Hour. Show Answer Correct Answer: D) Rp. 100/Hour. 14. What is the role of a trial balance in financial accounting? A) To calculate the company's tax liability. B) To ensure that the total debits equal the total credits in the general ledger. C) To track employee attendance. D) To determine the market value of the company's assets. Show Answer Correct Answer: B) To ensure that the total debits equal the total credits in the general ledger. 15. What is the main purpose of charging depreciation on fixed assets? A) To provide funds for the replacement of assets. B) To record the assets at their market value. C) To reduce the cost of repairing assets. D) To spread the cost of assets over their useful lives. Show Answer Correct Answer: D) To spread the cost of assets over their useful lives. 16. Amounts entered on the left side of an account, regardless of the account title, are called credits or charges to the account. A) True. B) False. Show Answer Correct Answer: B) False. 17. A business paper from which information is obtained for a journal entry. What is this called? A) Journal. B) Document. C) Source document. D) Accounting document. Show Answer Correct Answer: C) Source document. 18. Which of the following is a Real A/c? A) Building A/c. B) Capital A/c. C) Shyam A/c. D) Rent A/c. Show Answer Correct Answer: A) Building A/c. 19. A company's profit from operations has increased by 10% in a year, whilst its gross profit hasonly increased by 5%.Which factors could explain this?1 a decrease in finance costs2 a decrease in distribution costs3 an increase in rent received4 an increase in selling prices A) 1 and 2. B) 1 and 4. C) 2 and 3. D) 3 and 4. Show Answer Correct Answer: C) 2 and 3. 20. Which of the following is not found in a trial balance? A) Opening stock. B) Closing stock. C) Capital. D) Rent paid. Show Answer Correct Answer: B) Closing stock. ← 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