This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accounting > Accounting – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 18 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one of the main reasons why businesses need to keep accurate accounting records? A) To regulate taxes. B) To follow procedures. C) To eliminate risks. D) To control expenses. Show Answer Correct Answer: D) To control expenses. 2. When the new investment of a new partner exceeds the new partner's initial capital balance and asset revaluation is not recorded, who will receive the bonus? A) The new partner. B) The old and new partners in their new profit and loss ratio. C) The old partners in their new profit and loss ratio. D) The old partners in their old profit and loss ratio. Show Answer Correct Answer: D) The old partners in their old profit and loss ratio. 3. This process refers to the reporting of the information processed in the accounting system to interested users. A) Measuring. B) Classifying. C) Communicating. D) Identifying. Show Answer Correct Answer: C) Communicating. 4. You are a business owner. Your business needed additional capital so you obtained a loan from a bank. the bank made you sign a contract promising to repay the loan after a year. Which of the following accounts is increased? A) Accounts payable. B) Notes payable. C) Notes receivable. D) Accounts receivable. Show Answer Correct Answer: B) Notes payable. 5. The primary standard-setting body in the United States tasked with responsibility of ddetermining generally accepted accounting principles (GAAP) is the A) General Accounting Office (GAO). B) Financial Accounting Standards Board (FASB). C) Institute of Internal Auditors. D) Institute of Management Accountants. Show Answer Correct Answer: B) Financial Accounting Standards Board (FASB). 6. The use of holes in financial law to have an advantage or to show figures in a deceptive way A) CA. B) Confidentiality. C) Creative accounting. D) None of above. Show Answer Correct Answer: C) Creative accounting. 7. How would you journalize the establishment of a petty cash fund? A) Debit Petty Cash and credit Cash. B) Debit Cash and credit Petty Cash. C) Debit Expenses and credit Cash. D) Debit Petty Cash and credit Capital. Show Answer Correct Answer: A) Debit Petty Cash and credit Cash. 8. Which concept (or principle) would require that data be verifiable, or confirmed by an independent observer? A) Cost principle. B) Going-concern assumption. C) Reliability concept. D) Business Entity Concept. Show Answer Correct Answer: C) Reliability concept. 9. Concept:The same accounting procedures must be followed in the same way each accounting period A) Accounting period cycle. B) Objective evidence. C) Consistent reporting. D) Materiality. Show Answer Correct Answer: C) Consistent reporting. 10. Create Budgets and make business decisions, Measure performance, and Make investment decisions are examples of: A) Uses of Accounting. B) Types of Financial Reports. C) Types of Financial Transactions. D) Who uses the information. E) Generally Accepted Accounting Principles. Show Answer Correct Answer: A) Uses of Accounting. 11. Which of the following are the types of financial statements1.Statement of Cash Flow2.Statement of Comprehensive Income 3.Statement of Financial Position4. Trial balance A) 1, 2, 3 and 4. B) 1, 2 and 3. C) 2 and 4. D) 2, 3 and 4. Show Answer Correct Answer: B) 1, 2 and 3. 12. The principles of right and wrong that guide an individual in making decisions. A) Ethics. B) Net worth. C) Proprietors. D) Assets. Show Answer Correct Answer: A) Ethics. 13. A large company purchases a RM 150 chair and expenses it immediately instead of recording it as an asset and depreciating it over its useful life 10 years A) Materiality. B) Consistency. C) Going concern. D) Expenses recognition. Show Answer Correct Answer: A) Materiality. 14. Which of the following presents the first three steps in the accounting cycle in the correct order: A) Post, analyze, and journalize. B) Analyze, post, and journalize. C) Analyze, journalize, and post. D) Post, journalize, and analyze. Show Answer Correct Answer: C) Analyze, journalize, and post. 15. As per income tax act, accounting period is: A) From 1st april to 31st march. B) From 1st january to 31st december. C) From 1st july to 30th june. D) From Diwali to Diwali. Show Answer Correct Answer: A) From 1st april to 31st march. 16. Financial reports that summarize the financial conditions and operations of business. A) Capital accounts. B) Financial statements. C) Transactions. D) Financial balances. Show Answer Correct Answer: B) Financial statements. 17. The financial statement that reports the revenues and expenses for a period of time such as a year or a month is the A) Balance Sheet. B) Income Statement. C) Statement Of Cash Flows. D) None of above. Show Answer Correct Answer: B) Income Statement. 18. The accounting process is correctly sequenced as A) Communication, recording, identification. B) Identification, communication, recording. C) Identification, recording, communication. D) Recording, communication, identification. Show Answer Correct Answer: C) Identification, recording, communication. 19. Income is measured on the basics of A) Entity concept. B) Accounting period concept. C) Going concern concept. D) None of these. Show Answer Correct Answer: B) Accounting period concept. 20. Due to which principle qualitative transactions are not recorded in books: A) Business entity principle. B) Dual aspect principle. C) Money measurement principle. D) Historical cost principle. Show Answer Correct Answer: C) Money measurement principle. 21. The entry to establish a $ 300.00 petty cash fund is A) Debit Miscellaneous Expense $ 300, credit Cash $ 300. B) Debit Petty Cash $ 300, credit Cash $ 300. C) Debit Petty Cash $ 300, credit Miscellaneous Expense $ 300. D) Debit Cash $ 300, credit Petty Cash $ 300. Show Answer Correct Answer: B) Debit Petty Cash $ 300, credit Cash $ 300. 22. A post-closing trial balance is prepared before A) Preparing financial statements. B) Reversing the accounts. C) Adjusting and closing the books. D) Preparing a worksheet. Show Answer Correct Answer: B) Reversing the accounts. 23. Journal is a book of ..... entry A) Secondary. B) Original. C) First. D) None of these. Show Answer Correct Answer: B) Original. 24. Which organization set financial accounting standards and concepts? A) GAAP. B) FASB. C) IFRS. D) None of above. Show Answer Correct Answer: B) FASB. 25. How many process involved in bookkeeping? A) 2. B) 4. C) 3. D) 5. Show Answer Correct Answer: C) 3. 26. If an amount is recorded on the side opposite the normal balance side, the account balance is A) Correct. B) Decreased. C) Increased. D) Unaffected. Show Answer Correct Answer: B) Decreased. 27. Cash purchases were debited to the purchases account and credited to the cash account. Name the accounting principle: A) Duality. B) Consistency. C) Money measurement. D) Matching. Show Answer Correct Answer: A) Duality. 28. Company purchases supplies on account A) Decrease supplies, decrease accounts payable. B) Increase cash, decrease supplies. C) Increase supplies, increase accounts payable. D) Decrease cash, increase supplies. Show Answer Correct Answer: C) Increase supplies, increase accounts payable. 29. A general Leger/T) has a ..... and ..... side. A) Cash receipt and debtors. B) Debit and payments. C) Debit and credit. D) Creditors and debtors. Show Answer Correct Answer: C) Debit and credit. 30. Stage 1 of the Accounting process is A) Source documents. B) Advice. C) Record. D) Report. Show Answer Correct Answer: A) Source documents. ← 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