This quiz works best with JavaScript enabled. Home > Accounting > Financial Accounting > Financial Accounting – Quiz 99 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 99 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. (j) ..... :is also called a debit memorandum, a banker sends to customers to inform them of deductions from their accounts. In other words, it refers to a decrease in a deposit account balance, such as a check posted to the account. A) Debit advice. B) Credit advice. C) Receipt. D) Invoice. E) Quotation. Show Answer Correct Answer: A) Debit advice. 2. Anything that has value which provides service to an organization is known as: A) Capital. B) Liability. C) Assets. D) Creditors. Show Answer Correct Answer: C) Assets. 3. Liabilities and assets Amt to Rs50, 000 and Rs 78, 000 respectively. The difference Amt will represent A) Creditors. B) Debentures. C) Profit. D) Capital. Show Answer Correct Answer: D) Capital. 4. Trade Receivable A) The amount of money your customers or clients owe your business for goods or services you supply. B) Total revenues minus total expenses. C) How much profit you keep relative to total sales. D) None of above. Show Answer Correct Answer: A) The amount of money your customers or clients owe your business for goods or services you supply. 5. Activities that result in changes in the amount and composition of capital contributions and company loans are..... A) Operational Activities. B) Cost Activity. C) Investment Activities. D) Funding Activities. Show Answer Correct Answer: D) Funding Activities. 6. Mr. Rakesh gets total issued shares 100 @ Rs. 10 (Received from them = Rs. 3 on application, On allotment = Rs. 4, but did not receive Rs. 3 from the final call. Make Journal Entry for forfeiture of shares- A) Share Capital A/c Dr. 1000To Share Final Call A/c 700To Forfeited Shares A/c 300. B) Share Capital A/c Dr. 1000To Share Final Call A/c 300To Forfeited Shares A/c 700. C) Share Final Call A/c Dr. 300Forfeited Shares A/c Dr. 700To Share Capital A/c 1000. D) Share Capital A/c Dr. 1000To Forfeited Shares A/c 1000. Show Answer Correct Answer: B) Share Capital A/c Dr. 1000To Share Final Call A/c 300To Forfeited Shares A/c 700. 7. How to record Credit purchases? A) Dr Purchase Cr Bank. B) Dr PurchasesCr Payables. C) Dr PayablesCr purchases. D) Dr CashCr Purchases. Show Answer Correct Answer: B) Dr PurchasesCr Payables. 8. Accounts payable accounting is not associated with the procurement process. A) True. B) False. Show Answer Correct Answer: B) False. 9. What is the transaction for the purchase of equipment by signing a promissory note? A) Dr equipment, credit cash. B) Dr equipment, credit owner's equity. C) Dr equipment, credit note payable. D) Dr equipment, credit accounts payable. Show Answer Correct Answer: C) Dr equipment, credit note payable. 10. Max Corporation is a 25 percent-owned equity investee of Mor Corporation. During the current year, Mor receives $ 12, 000 in dividends from Max. How does the $ 12, 000 dividend affect Mor's financial position and results of operations? A) Increases assets. B) Decreases investment. C) Increases income. D) Decreases income. Show Answer Correct Answer: B) Decreases investment. 11. Below are not included in the accounts that need to be adjusted A) Charges paid in advance. B) Income received in advance. C) Income that will still be received. D) Bond debt. E) Accrued expenses. Show Answer Correct Answer: D) Bond debt. 12. Which of the following is used to derive missing figures in a system of incomplete records? A) Control account. B) Bank account. C) Profit and loss account. D) Bank statement. Show Answer Correct Answer: A) Control account. 13. This constraint of accounting information does not influence decision making process in an organization. A) Cost benefit. B) Materiality. C) Conservatism. D) Industry practice. Show Answer Correct Answer: B) Materiality. 14. Which side of the ledger would increase an expense? A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 15. Income and expenditure account records transaction of A) Revenue nature only. B) Capital nature only. C) Both revenue and capital nature. D) Income of only revenue nature and expenditure of revenue and capital nature. Show Answer Correct Answer: A) Revenue nature only. 16. What are uncredited items in a bank reconciliation statement? A) Money given to a business from the profit made by a public limited liability company. B) Amount paid directly into the business bank account but not yet debited to the cash book. C) Cheques given to suppliers but not yet debited to the bank statement. D) Cheques/cash received from customers but not yet credited to the bank statement. Show Answer Correct Answer: D) Cheques/cash received from customers but not yet credited to the bank statement. 17. Chad bought a pair of jeans that cost $ 54, but his total was $ 58.32 due to the sales tax. What percent sales tax did he pay? A) 8%. B) 80%. C) 4.32%. D) 6%. Show Answer Correct Answer: A) 8%. 18. The portion of issued capital which is subscribed by the public is called ..... A) Called-up Capital. B) Subscribed Capital. C) Paid-up Capital. D) Nominal Capital. Show Answer Correct Answer: B) Subscribed Capital. 19. Equipment reported on January 1, 2020 Rp. 2, 500, 000. Equipment purchases during 2014 Rp. 4, 600, 000. Equipment remaining on December 31, 2020 Rp. 1, 000, 000. The correct adjustment entry for equipment is..... A) Supplies Expense (D) Rp. 6.100.000Supplies (K) Rp. 6.100.000. B) Supplies Expense (D) Rp. 1.500.000Supplies (K) Rp. 1.500.000. C) Supplies (AND) Rp. 1.000.000 Supplies Expense (KRp. 1.000.000. D) Supplies (D) Rp. 6.100.000Supplies Expense (K) Rp. 6.100.000. Show Answer Correct Answer: A) Supplies Expense (D) Rp. 6.100.000Supplies (K) Rp. 6.100.000. 20. In ordinary business, ..... are intended to be used and not sold A) Land and machinery. B) Assets. C) Fixed assets. D) Liabilities. Show Answer Correct Answer: C) Fixed assets. ← 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