This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 98 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 98 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ..... can transfer the right to cash a check to another party by endorsing it. A) Accountant. B) Payee. C) Payer. D) Bank officer. Show Answer Correct Answer: B) Payee. 2. Trading account is a A) Personal account. B) Real account. C) Nominal account. D) None of the above. Show Answer Correct Answer: C) Nominal account. 3. In single entry, the capital is ascertain by preparing ..... A) Cash book. B) Debtors account. C) Creditors account. D) Statement of affairs. Show Answer Correct Answer: D) Statement of affairs. 4. On January 2 2011, ABC company purchased a machine for Rp. 100, 000, 000 with an economic life of 4 years. The machine has no residual value. What is the depreciation expense at the end of 2011 if you use the double declining balance method? A) Rp. 12.500.000. B) Rp. 25.000.000. C) Rp. 50.000.000. D) Rp. 6.250.000. E) Rp. 75.000.000. Show Answer Correct Answer: C) Rp. 50.000.000. 5. How does net loss affect owner's equity? A) Increases. B) Decreases. C) No change. D) Indirectly. Show Answer Correct Answer: B) Decreases. 6. A credit to an liability account increases the balance. A) True. B) False. Show Answer Correct Answer: A) True. 7. Are management accountants required by law? A) Yes, they are legally required for all businesses. B) No, they are not legally required. C) Yes, but only for large businesses. D) No, but they are highly recommended. Show Answer Correct Answer: B) No, they are not legally required. 8. What are the differences between bookkeeping and accounting? A) No difference. B) Accounting is only a part of bookkeeping. C) Bookkeeping is only a part of accounting. D) They are completely different. Show Answer Correct Answer: C) Bookkeeping is only a part of accounting. 9. How is equity measured for accounting purposes? A) Future sacrifices of economic benefits that a business owes to other entities. B) Durable produced goods used as productive inputs. C) Ownership interest in property offset by debts or liabilities. D) The total amount of income generated by the sale of goods and services. Show Answer Correct Answer: C) Ownership interest in property offset by debts or liabilities. 10. Which book of original entry records the key detailed information for each individual credit sale to a customer? A) Sales Returns Daybook. B) Purchases Daybook. C) Sales Daybook. D) Purchases Returns Daybook. Show Answer Correct Answer: C) Sales Daybook. 11. The following is an example of expenditure using petty cash, namely..... A) Debt repayment. B) Purchase of merchandise. C) Payment of employee salaries. D) Purchase of office supplies. Show Answer Correct Answer: D) Purchase of office supplies. 12. In the balance sheet, a debit balance in Unrealized Gain or Loss-Equity is reported as a(n): A) Increase to stockholders' equity. B) Decrease to stockholders' equity. C) Loss in the income statement. D) Loss in the retained earnings statement. Show Answer Correct Answer: B) Decrease to stockholders' equity. 13. An owner's personal expenses should be kept separate from the business A) Full Disclosure Principle. B) Business Entity Principle. C) Going Concern Principle. D) Accrual Accounting. Show Answer Correct Answer: B) Business Entity Principle. 14. Outstanding Income is A) Asset. B) Liability. C) Dont Know. D) None of above. Show Answer Correct Answer: A) Asset. 15. Forecasting A) A formal one-year operating plan to achieve the financial goals of an organization. B) Making future predictions about the budget based on current situations and trends. C) A method that involves estimating expenses for a future period as a percentage of the sales forecast. D) The process of using historical information and knowledge of external factors to predict future sales. Show Answer Correct Answer: B) Making future predictions about the budget based on current situations and trends. 16. An adjusted trial balance A) Shows the ending account balance in a "debit" and "credit" format before posting the adjusting journal entries. B) Is prepared after closing entries have been posted. C) Shows the ending account balances resulting from the adjusting journal entries in a "debit" and "credit" format. D) Is a tool used by financial analysts to review the performance of publicly traded companies. Show Answer Correct Answer: C) Shows the ending account balances resulting from the adjusting journal entries in a "debit" and "credit" format. 17. Which of the following is not the element of financial statements? A) Assets. B) Shareholders. C) Revenues. D) Gains. Show Answer Correct Answer: B) Shareholders. 18. Interim financial reports are financial reports A) In which revenues are reported in the income statement when cash is received and expenses are reported when cash is paid. B) That are prepared before any adjustments have been recorded. C) Covering less than one year, usually based on one-or three-month periods. D) In which the adjustment process is used to assign revenues to the periods in which they are earned and to match expenses with revenues. E) That show the assets above the liabilities and the liabilities above the equity. Show Answer Correct Answer: C) Covering less than one year, usually based on one-or three-month periods. 19. The inventory of goods at the end of the period is valued with the assumption that the last goods entered (purchased) are considered to be the first to go out (sold). This method of recording inventory is called..... A) Specific identifications method. B) Gross margin method. C) Retail method. D) Last in first out. E) First in first out. Show Answer Correct Answer: D) Last in first out. 20. The total amount of money received from debtors, in addition to being recorded in the bank account, should be ..... A) Credited to the sales account. B) Credited to the debtors control account. C) Debited to the debtors control account. D) Debited to the sales account. Show Answer Correct Answer: B) Credited to the debtors control account. ← 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