This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accounting > Accounting – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mrs Aidas argues that the method of valuation inventory on a first-in, first-out (FIFO) can be converted to a Last-in, first-out (LIFO) at anytime A) Objectivity. B) Consistency. C) Full disclosure. D) Materiality. Show Answer Correct Answer: B) Consistency. 2. Accounting shows: A) How much others owe to the business. B) How much money the business has. C) How much the business owes others. D) All of the above. E) None of the above. Show Answer Correct Answer: D) All of the above. 3. Which of the following are not the internal user of accounting information? A) Financial institutions. B) Business owners. C) Current investor. D) Manager. Show Answer Correct Answer: A) Financial institutions. 4. Sky Sdn Bhd paid salary RM1, 000 for its workers. A) Monetary Unit. B) Going concern. C) Objectivity. D) Realization. Show Answer Correct Answer: A) Monetary Unit. 5. Raising money through selling bonds notes or mortgages or borrowing direction from financial institutions A) Investment. B) Keep the peace. C) Loans. D) Debt Financing. Show Answer Correct Answer: D) Debt Financing. 6. Which type of business organisation has the following characteristics? -conducts business separate from its owners-the owners have limited liability-the organisation is a taxable entity A) Sole trader. B) Partnership. C) Company/corporation. D) None of the above. Show Answer Correct Answer: C) Company/corporation. 7. Which of the following does not accurately represent the accounting equation? A) Assets-Liabilities = Stockholders' Equity. B) Assets-Stockholders' Equity = Liabilities. C) Assets + Liabilities = Stockholders' Equity. D) Assets = Liabilities + Stockholders' Equity. Show Answer Correct Answer: C) Assets + Liabilities = Stockholders' Equity. 8. The unspent part of income A) Liabilities. B) Savings. C) Loss. D) Profit. Show Answer Correct Answer: B) Savings. 9. Which accounting rules is being applied? Financial statements must be prepared in such a way as to ensure they present a true and fair view of the financial position. A) Comparability. B) Relevance. C) Reliability. D) Understandability. Show Answer Correct Answer: C) Reliability. 10. Journal entries recorded to update general ledger accounts at the end of a fiscal period. A) Adjusting entries. B) Closing entries. C) Working entries. D) None of these. Show Answer Correct Answer: A) Adjusting entries. 11. It is involved in providing professional services particularly in performing tasks by making financial reports regarding the financial activities of economic entities. What nature of accounting is it? A) An art and science. B) A Discipline. C) A service activity. D) A Language of Business. Show Answer Correct Answer: C) A service activity. 12. The ..... was developed as a result of the Securities Act and Securities Exchange Act. A) Securities and Exchange Commission. B) Federal Deposit Insurance Corporation. C) Federal Reserve Bank. D) Securities and Exchange Center of America. Show Answer Correct Answer: A) Securities and Exchange Commission. 13. The decrease in the usefulness of property and equipment as time passes is called A) Consumption. B) Contra-Assets. C) Depreciation. D) Deterioration. Show Answer Correct Answer: C) Depreciation. 14. Why do many accountants create a worksheet? A) To aid in the process of completing an unadjusted trial balance. B) To aid in the process of completing an adjusted trial balance. C) To aid in the process of completing a final balance sheet for the period. D) To aid in the process of completing a final income statement for the period. Show Answer Correct Answer: B) To aid in the process of completing an adjusted trial balance. 15. The purpose of book-keeping in business is to A) Interpret financial statements of the business. B) Detect financial difficulties in the business. C) Record transactions in a prescribed manner. D) Design a system for records in the business. Show Answer Correct Answer: D) Design a system for records in the business. 16. ..... reflects the assumption that the business continues operating. A) Full disclosure principle. B) Matching principle. C) Going concern assumption. D) Cost principle. Show Answer Correct Answer: C) Going concern assumption. 17. When a company buys supplies on account, the cash account does what? A) Decreases. B) Stays the same. C) Increases. D) There is no cash account. Show Answer Correct Answer: B) Stays the same. 18. Failure to keep information confidential could open the door to fraud, identity theft, and other illegal activities if the information is shared with the wrong parties. A) Integrity Standards. B) Confidentiality of Information. C) Professional Skill. D) Independence and Objectivity. Show Answer Correct Answer: B) Confidentiality of Information. 19. When a company pays a bill using cash, the cash account does what? A) Stays the same. B) Increases. C) Decreases. D) There is no cash account. Show Answer Correct Answer: C) Decreases. 20. According to the accrual concept of accounting, financial or business transaction is recorded A) When cash is received or paid. B) When balance sheet is prepared. C) When transaction occurs. D) When profit is computed. Show Answer Correct Answer: C) When transaction occurs. 21. What type of users does managerial accounting focus on? A) Company management. B) Potential Investors. C) Lenders. D) Current Investors. Show Answer Correct Answer: A) Company management. 22. A part of PAS 16, it allows industries to go outside of traditional accounting principles as long as it is infrequent and justifiable A) Industry Practice. B) Cost-Benefit. C) Materiality. D) Conservatism. Show Answer Correct Answer: A) Industry Practice. 23. One operating cycle of a business, which could be a month, quarter, or year, is commonly referred to as which of the following? A) Period. B) Round. C) Tally. D) Mark. Show Answer Correct Answer: A) Period. 24. This is prepared to check the equality of debits and credits. A) T-Account. B) Balance Sheet. C) Trial Balance. D) Ledger. Show Answer Correct Answer: C) Trial Balance. 25. What is Accounting? A) Maths. B) Accounting is reviewing data and managing finances for a business. C) Finances for a business. D) None of above. Show Answer Correct Answer: B) Accounting is reviewing data and managing finances for a business. 26. The company receives cash from a bank loan. Liabilities will ..... A) Increase. B) Decrease. C) No Effect. D) None of above. Show Answer Correct Answer: A) Increase. 27. A company or group of people authorized to act as a single entity (legally a person) and recognized as such in law. A) Non-profit business. B) Corporation. C) Business entity. D) For-profit business. Show Answer Correct Answer: B) Corporation. 28. Deposit in transit: A) Deduct from Book Balance. B) Deduct from Bank Balance. C) Add to Bank Balance. D) Add to Book Balance. Show Answer Correct Answer: C) Add to Bank Balance. 29. The most common form of business organization is A) Cooperative. B) Sole proprietorship. C) Partnership. D) Corporation. Show Answer Correct Answer: B) Sole proprietorship. 30. Which of the following major accounting innovations became popular during the 1980s? A) Big Data. B) Accounting Software for the PC. C) Cloud Computing for the PC. D) Mobile Technology. Show Answer Correct Answer: B) Accounting Software for the PC. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesAccounting Quiz 1Accounting Quiz 2Accounting Quiz 3Accounting Quiz 4Accounting Quiz 5Accounting Quiz 6Accounting Quiz 7Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books