This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 97 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 97 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When preparing a balance sheet, the amount of owner's capital is calculated using amounts obtained from: A) The general ledger. B) The income statement. C) The journal. D) None of these. Show Answer Correct Answer: D) None of these. 2. It is a measurement of performance (shows the profit or loss) of the company. A) Income Statement. B) Balance Sheet. C) Cash Flow Statement. D) Statement of Owner's Equity. Show Answer Correct Answer: A) Income Statement. 3. A ..... is an artificial person which is recognized in law as a separate legal entity A) Partner. B) Lawyer. C) Company. D) Corporation. Show Answer Correct Answer: C) Company. 4. In Dual Aspect Concept the assets represent economic resources of the business. A) True. B) False. Show Answer Correct Answer: A) True. 5. The accounting principles that states companies and owners should be account for separately ..... A) Business entity concept. B) Going concern concept. Show Answer Correct Answer: A) Business entity concept. 6. What is the total share dividend declared for the year.Hint:Sum the Preference Share Dividend and the Ordinary Share Dividend A) £1, 750. B) £5, 000. C) £4, 000. D) £, 6750. Show Answer Correct Answer: D) £, 6750. 7. Gallery Corp. paid $ 6, 000 for a six-month insurance policy for the company van. The policy coverage began on January 1. On January 31, $ 1, 000 of insurance expense must be reported. A) True. B) False. Show Answer Correct Answer: A) True. 8. Prepaid expenses fall into the category of A) Revenue. B) Liabilities. C) Assets. D) Stockholders' equity. Show Answer Correct Answer: C) Assets. 9. A report made by company management that shows the revenue, expenses, and net income or loss for a period. A) Trading Account. B) Statement of Financial Position. C) Income Statement. D) Statement of Changes in Equity. Show Answer Correct Answer: C) Income Statement. 10. Purchase of goods on credit would be recorded in the account as a debit A) Supplier's account, credit purchases account. B) Purchases account, credit cash account. C) Purchase account, credit supplier's account. D) Supplier's account, credit sales account. Show Answer Correct Answer: C) Purchase account, credit supplier's account. 11. How do you calculate depreciation with the cost method? A) Amount x percentage / months. B) Amount x percentage x months. C) Amount x percentage + months/12. D) Amount x percentage x months/12. Show Answer Correct Answer: D) Amount x percentage x months/12. 12. PT. Gudang Garam is a well-known company, has a good name among the public and investors. The salt warehouse factory is located close to regional tobacco farmers and is well managed in terms of management and governance. More value from PT. Gudang Garam is..... A) Tangible fixed assets. B) Goodwill. C) Copyright. D) Trademark. E) Franchise. Show Answer Correct Answer: B) Goodwill. 13. A person who owes money to the firm on account of good sold: A) Trade receivable. B) Trade payable. C) Seller. D) Customer. Show Answer Correct Answer: A) Trade receivable. 14. Debenture-holders are A) Creditors. B) Owners. C) Customers. D) None of these. Show Answer Correct Answer: A) Creditors. 15. Which asset from the following is actually not an asset but an expense of heavy nature A) Fixed asset. B) Current asset. C) Wasting asset. D) Fictitious asset. Show Answer Correct Answer: D) Fictitious asset. 16. Financial accounting reports include A) Profit & loss account. B) Directors report. C) Balance sheet & auditor's report. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. The selling price of an asset less the asset's net book value will calculate: A) The asset's accumulated depreciation. B) Straight-line depreciation. C) Salvage value. D) The gain or loss on sale. Show Answer Correct Answer: D) The gain or loss on sale. 18. Cash checks are carried out when..... A) Once a week. B) Once a month. C) Anytime. D) Every day. Show Answer Correct Answer: C) Anytime. 19. The PCAOB was created in what year? A) 1902. B) 2002. C) 2001. D) 1913. Show Answer Correct Answer: B) 2002. 20. The purpose of financial accounting is to provide information for ..... A) Assessing the profitability and financial position of the firm. B) Fixing prices. C) Locating factors leading to wastages and losses. D) Cost control. Show Answer Correct Answer: A) Assessing the profitability and financial position of the firm. ← 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