This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 91 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 91 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If opening stock of goods is 7, 00, 000-sales 20, 00, 000-purchases = 12, 00, 000, gross profit-4, 00, 000 then find closing stock- A) Rs. 11, 00, 000-. B) Rs. 3, 00, 000-. C) Rs. 8, 00, 000-. D) Rs. 16, 00, 000-. Show Answer Correct Answer: B) Rs. 3, 00, 000-. 2. Explain the purpose of the income statement. A) To determine the market share of the company. B) To show the financial performance of a company over a specific period of time. C) To measure the level of customer satisfaction. D) To track the number of employees in the company. Show Answer Correct Answer: B) To show the financial performance of a company over a specific period of time. 3. What is equity? A) Describes what an organization has invested in. B) Describes non-owner financing. C) Describes owner financing. D) Describes the success of the business. Show Answer Correct Answer: C) Describes owner financing. 4. Ledger is called book of A) Primary entry. B) Secondary entry. C) Final entry. D) All of the above. Show Answer Correct Answer: C) Final entry. 5. Grimtown took out a $ 10 million 6% loan on 1 January 20X1 to build a new football stadium. Not all of the funds were immediately required so $ 2 million was invested in 3% bonds until 30 June 20X1. Construction of the stadium began on 1 February 20X1 and was completed on 31 December 20X1. Calculate the amount of interest to be capitalised in respect of the football stadium as at 31 December 20X1. A) 0.6 million. B) 0.525 million. C) 0.52 million. D) Other. Show Answer Correct Answer: B) 0.525 million. 6. A Joint Venture ends when ..... A) When the particular deal for which it was created is over. B) When it do not generate any profits. C) When the God wishes it. D) When there is a quarrel among the owners. Show Answer Correct Answer: A) When the particular deal for which it was created is over. 7. Goods lying unsold on a particular date when the SOFP is prepared: A) Opening Inventory. B) Assets. C) Capital. D) Closing Inventory. Show Answer Correct Answer: D) Closing Inventory. 8. A statement of financial position is another name for: A) The income statement. B) The balance sheet. C) The statement of cash flows. D) The statement of changes in equity. E) The accounting equation. Show Answer Correct Answer: B) The balance sheet. 9. A company could use ..... to analyze its profits and losses from fiscal period to fiscal period A) Bank reconciliations. B) A comparative income statement. C) A checkbook register. D) Post-closing trial-balance records. Show Answer Correct Answer: B) A comparative income statement. 10. What is the set of financial accounting standards used in the US called? A) Generally Accepted Accounting Principals. B) Generally Accepted Accounting Policies. C) American Financial Accounting Standards. D) International Financial Accounting Standards. Show Answer Correct Answer: A) Generally Accepted Accounting Principals. 11. Revenue that results when a plant asset is sold for more than book value. A) Gain on plant asset. B) Loss on plant asset. C) Salvage value. D) Plant asset record. Show Answer Correct Answer: A) Gain on plant asset. 12. Money received from a business investor would be an example of A) Cash inflow. B) Cash outflow. Show Answer Correct Answer: A) Cash inflow. 13. This information is presented to various people to help them make business decisions. A) Financial Decision. B) Accounting. C) Accounting Information. D) Financial Statements. Show Answer Correct Answer: C) Accounting Information. 14. Discount column in the cash book is A) Always balanced. B) Only totalled. C) Never written. D) All of the above. Show Answer Correct Answer: B) Only totalled. 15. Asset accounts have what type of balance? A) Debit. B) Credit. C) Contra. D) All of the above. Show Answer Correct Answer: A) Debit. 16. What is the scope of managerial accounting? A) Narrow, focusing on specific departments and cost centers. B) No specific scope. C) Broad, consolidating results of all business units. D) Limited to financial information only. Show Answer Correct Answer: A) Narrow, focusing on specific departments and cost centers. 17. In absence of partnership deed the profit or loss should be distributed among partners in their capital ratio. A) True. B) False. Show Answer Correct Answer: B) False. 18. Which is a Type of Account? A) Debit. B) Trading. C) Nominal. D) Credit. Show Answer Correct Answer: C) Nominal. 19. Hanes Company sells debt investments costing $ 26, 000 for $ 28, 000. In journalizing the sale, credits are to: A) Debt Investments and Loss on Sale of Debt Investments. B) Debt Investments and Gain on Sale of Debt Investments. C) Stock Investments and Gain on Sale of Stock Investments. D) No correct answer is given. Show Answer Correct Answer: B) Debt Investments and Gain on Sale of Debt Investments. 20. Oil India Limited (OIL) belongs to which type of industry? A) Joint sector. B) Public sector. C) Cooperative. D) Private sector. Show Answer Correct Answer: A) Joint sector. ← 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