This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 94 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Shareholders, Managers, Creditors Governments A) Internal user. B) External user. C) Internal user & external user. D) None of above. Show Answer Correct Answer: C) Internal user & external user. 2. Assets will be recorded at full fair value even if the acquiring company only purchases 80% ownership in the company that owns the assets, called the..... A) Acquisition Method. B) Purchase Method. C) Unification Method. D) Sales Method. Show Answer Correct Answer: A) Acquisition Method. 3. Retained Earnings is: A) The accumulated undistributed earnings of the corporation reported on the balance sheet. B) The accumulated distributed earnings of the corporation reported on the balance sheet. C) The accumulated undistributed earnings of the corporation reported on the income sheet. D) All of the above. Show Answer Correct Answer: A) The accumulated undistributed earnings of the corporation reported on the balance sheet. 4. The closing inventory of Epsilon amounted to $ 284, 000 at 30 September 20X4, the statement of financial position date. This total includes two inventory lines about which the inventory taker is uncertain.(1) 500 items which had cost $ 15 each and which were included at $ 7, 500. These items were found to have been defective at the statement of financial position date. Remedial work after the statement of financial position date cost $ 1, 800 and they were then sold for $ 20 each. Selling expenses were $ 400.(2) 100 items which had cost $ 10 each. After the statement of financial position date they were sold for $ 8 each, with selling expenses of $ 150. A) $ 283, 650. B) $ 283, 800. C) $ 292, 150. D) $ 283, 950. Show Answer Correct Answer: A) $ 283, 650. 5. Which of the following description is more likely to reflect the characteristic of a joint venture? A) The venturers cannot have their own business besides the venture. B) It will end immediately when the business is completed. C) Two parties joint together to make a continuing business. D) It is limited to the business of two parties only. Show Answer Correct Answer: B) It will end immediately when the business is completed. 6. A partnership exists between: A) One owner and their family. B) 2 to 20 people. C) 20 or more people. D) 2 people only. Show Answer Correct Answer: B) 2 to 20 people. 7. Revenues are matched with expenses in accordance with the matching principle. A) True. B) False. Show Answer Correct Answer: B) False. 8. How many schedules are there in the revised format of Final Accounts of a banking company? A) 8. B) 10. C) 12. D) 16. Show Answer Correct Answer: D) 16. 9. What is the main purpose of financial accounting? A) To record all transactions in the books of account. B) To provide management with detailed analyses of costs. C) To enable preparation of financial statements that provides information about an entity's financial performance and position. D) To calculate profit or loss for an accounting period. Show Answer Correct Answer: C) To enable preparation of financial statements that provides information about an entity's financial performance and position. 10. Owners drawings of goods will come in payments in Cash budget A) False. B) True. Show Answer Correct Answer: A) False. 11. , Mr. Hymawan paid off the debt for purchasing sacks of rice from Mr. Azra amounting to IDR 500, 000, then Mr. Azra's correct recording is..... A) Cash (D) and Accounts Payable (K) amounting to IDR 500, 000. B) Accounts Payable (D) and Cash (K) amounting to IDR 500, 000. C) Cash (D) and Accounts Receivable (K) amounting to IDR 500, 000. D) Cash (D) and Sales (K) amounting to IDR 500, 000. Show Answer Correct Answer: C) Cash (D) and Accounts Receivable (K) amounting to IDR 500, 000. 12. Every debit has a corresponding Credit, the statement is A) True. B) False. C) Partially true. D) None of the above. Show Answer Correct Answer: A) True. 13. 'Prime cost' does not include..... A) Direct labour costs. B) Factory overhead expenses. C) The cost of raw materials consumed. D) Direct expenses. Show Answer Correct Answer: B) Factory overhead expenses. 14. The fixed asset account of a dependent branch is maintained by A) Branch. B) Head office. C) Both head and branch office. D) Departmental store. Show Answer Correct Answer: B) Head office. 15. Types of business are A) Sole. B) Partnership. C) Joint stock company. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Which of the following is represented in FRSC? A) Financial Executives Institute of the Philippines. B) Financial Executives Institute of the Philippines. C) Association of CPAs in Commerce and Industry. D) Association of CPAs in Education. Show Answer Correct Answer: A) Financial Executives Institute of the Philippines. 17. Identify the type of expenditure. Legal charges on acquiring new building for office A) Capital. B) Revenue. Show Answer Correct Answer: A) Capital. 18. As per this concept, every business transaction has a dual effect. A) Dual Aspect. B) Historical Cost Concept. C) Materiality Concept. D) Periodicity Concept. Show Answer Correct Answer: A) Dual Aspect. 19. Amount paid for Bills payable given to ram. It will be debited A) Bills payable account. B) Ram's account. C) Cash account. D) None of these. Show Answer Correct Answer: A) Bills payable account. 20. Primage means- A) Additional commission. B) Extra freight. C) Additional brokerage. D) None of these. Show Answer Correct Answer: B) Extra freight. ← 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