This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 84 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 84 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The correct procedure for recording trade receivables is..... A) Additional Receivables, Sales Returns. B) Reduction of Receivables, Credit Sales. C) Reduction of Receivables, Write-off of Receivables. D) Addition of Receivables, Receipt of Receivables. Show Answer Correct Answer: C) Reduction of Receivables, Write-off of Receivables. 2. Which of the following reports is filed annually with the SEC? A) Form 10-Q. B) Form 10-K. C) Form 8-K. D) Press Release. Show Answer Correct Answer: B) Form 10-K. 3. Purchase of pen is treated as a revenue expense, according to the concept of A) Objectivity. B) Materiality. C) Cost. D) Accounting Period. Show Answer Correct Answer: B) Materiality. 4. What is the rule of the Real account A) Debit the receiver Credit the Giver. B) Debit what comes in Credit what goes out. C) Debit all expenses and losses Credit Income and gain. D) None of these. Show Answer Correct Answer: B) Debit what comes in Credit what goes out. 5. Cash in Bank is classified as A) Current Asset. B) Current Liability. C) Noncurrent Asset. D) Noncurrent Liability. Show Answer Correct Answer: A) Current Asset. 6. The total value used to start the business is called ..... A) Capital. B) Asset. C) Loan. D) Liabilities. Show Answer Correct Answer: A) Capital. 7. The exclusive right to produce and sell an invention. A) Goodwill. B) Trademark. C) Patent. D) Franchises and license. Show Answer Correct Answer: C) Patent. 8. When a liability is decreased or reduced it is registered on the A) Debit or left side of the a/c. B) Credit or right side of the a/c. C) Debit or right side of the a/c. D) Credit or left side of the a/c. Show Answer Correct Answer: B) Credit or right side of the a/c. 9. What is meant by the abbreviation FRS. A) Financial Reporting Scotland. B) Financial Reporting Standards. C) Financial Regulations Scotland. D) Future Reporting Standards. Show Answer Correct Answer: B) Financial Reporting Standards. 10. Accounting is a service activity and its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decision. This accounting definition is given by A) Accounting Standard Council. B) AICPA Committee on Accounting Terminology. C) American Accounting Association. D) Board of Accountancy. Show Answer Correct Answer: C) American Accounting Association. 11. Which of the following is scientific system of maintaining Accounts. A) Single entry system. B) Contra entry system. C) Double entry system. D) Book entry. Show Answer Correct Answer: C) Double entry system. 12. Accounting Organizations in Indonesia A) IASB. B) FASB. C) IAI. D) KPP. Show Answer Correct Answer: C) IAI. 13. In accordance with FRS 102 section 17 Property Plant and Equipment, which of the following is not included in the cost of an asset: A) Transport costs. B) Non-refundable import duties and taxes. C) Administration costs. D) Professional fees. Show Answer Correct Answer: C) Administration costs. 14. Which of the following elements of a manufacturing account matches the definition below:Expenses which can be traced directly to the units manufactured. This can include royalties and hire of specialist equipment. A) Direct wages. B) Direct materials. C) Direct expenses. D) Indirect materials. Show Answer Correct Answer: C) Direct expenses. 15. What is the purpose of a bank reconciliation statement? A) To settle disagreements between a cash book and a bank statement. B) To calculate business profits. C) To prepare financial statements for the business. D) To record daily cash transactions. Show Answer Correct Answer: A) To settle disagreements between a cash book and a bank statement. 16. Which financial statement reports revenues, expenses, and net income over a specific period? A) Statement of Financial Position. B) Statement of Change in Equity. C) Statement of Other Comprehensive Income. D) Statement of Cash Flow. Show Answer Correct Answer: C) Statement of Other Comprehensive Income. 17. Main differences between normative and positive theories:Normative theories are prescriptive meanwhile Positive theories are descriptive, explanatory or predictive. A) True. B) False. Show Answer Correct Answer: A) True. 18. The amount of an intangible asset used up during the period. A) Depreciation. B) Amortization. C) Depletion. D) Goodwill. Show Answer Correct Answer: B) Amortization. 19. An income statement reports a business's: A) Financial condition over a specific period of time. B) Financial progress over a specific period of time. C) Financial condition on a specific date. D) Financial progress on a specific date. Show Answer Correct Answer: B) Financial progress over a specific period of time. 20. When Debtors are 20, 500.Write off Bad debts Rs 500. Create Provision for debtors 5%. Discount on Debtors 2%. What balance appears in balance sheet after above adjustments. A) 18, 945. B) 18, 620. C) 19, 090. D) 19, 085. Show Answer Correct Answer: B) 18, 620. ← 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