This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accounting > Accounting – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Accounting tools are ..... A) Financial reports, software and processes that help to manage financial operations. B) Accounts in the general ledger that are periodically updated. C) Adjusting and closing entries for financial statement preparation. D) There is no such thing. Show Answer Correct Answer: A) Financial reports, software and processes that help to manage financial operations. 2. Rent collected in advance is an example of which of the following? A) Deferred expense (prepaid expense). B) Accrued expense. C) Deferred revenue (unearned revenue). D) Accrued revenue. Show Answer Correct Answer: C) Deferred revenue (unearned revenue). 3. (1.6.1 Definitions of international accounting)Below shows the area of definition under the concept of universal or world accounting, except A) Critical history. B) Institutional history. C) Practice history. D) Historiography. Show Answer Correct Answer: C) Practice history. 4. A formal arrangement by two or more parties to manage and operate a business and share its profits. A) Merchandising business. B) Going concern. C) Profit. D) Partnership. Show Answer Correct Answer: D) Partnership. 5. When the owner of a business takes goods from inventory for his own personal use, which of the following accounting principles should be considered? A) Business entity. B) Consistency. C) Going concern. D) Money measurement. Show Answer Correct Answer: A) Business entity. 6. What was the CEO of Tyco accused of doing? A) Hiding debt by transferring it to subsidiaries. B) Hiding debt by transferring it to subsidiaries. C) Engaging in insider trading. D) Using company funds to pay for his lavish lifestyle. Show Answer Correct Answer: D) Using company funds to pay for his lavish lifestyle. 7. Business Owners, Managers of various operations, Stakeholders are examples of: A) Uses of Accounting. B) Types of Financial Reports. C) Types of Financial Transactions. D) Who uses the information for accounting purposes. E) Generally Accepted Accounting Principles. Show Answer Correct Answer: D) Who uses the information for accounting purposes. 8. On her way to her cubicle, Penny hears her manager scolding an intern for making a mistake. Penny knows that she was the one who made the mistake, so she goes to the manager and tells the truth. This action shows Penny's ..... A) Punctuality. B) Accountability. C) Time management. D) Respect for diversity. Show Answer Correct Answer: B) Accountability. 9. A record summarizing all the information pertaining to a single item in the accounting equation. A) Account title. B) Account balance. C) Accounting. D) Account. Show Answer Correct Answer: D) Account. 10. What is the classification of Vehicle A) Non-current asset. B) Non-current liability. C) Current Liability. D) Current Asset. Show Answer Correct Answer: A) Non-current asset. 11. Which of the following is NOT ethical principle of accounting: A) Professional behaviour. B) Due care. C) Subjectivity. D) Integrity. Show Answer Correct Answer: C) Subjectivity. 12. The owner's worth after assets are used to pay all liabilities is the definition of A) Owner's Equity. B) Liabilities. C) Assets. D) None of above. Show Answer Correct Answer: A) Owner's Equity. 13. Report on the spending of government funds A) Government accounting. B) Financial Accounting. C) Accounting Education. D) None of above. Show Answer Correct Answer: A) Government accounting. 14. The manager of S Danielle's Enterprises has instructed the accounts clerk to omit some of the entries totally from the books. This unethical practice is known as: A) Misappropriation of assets. B) Penalities. C) Fraudulent financial reporting. D) Disclosure. Show Answer Correct Answer: D) Disclosure. 15. Provides information used internally for planning, evaluating, analyzing, and controlling business decisions and operations. A) Management accounting. B) Financial accounting. C) Internal auditing. D) Forensic accounting. Show Answer Correct Answer: A) Management accounting. 16. In accounting, which of the following payment types is journalized as if it were a cash transaction? A) EFT. B) Debit card. C) Check. D) All of these. Show Answer Correct Answer: D) All of these. 17. This principle states that acquired assets should be recorded at their actual cost and not at what management thinks they are worth as at reporting date. A) Materiality. B) Historical Cost. C) Entity concept. D) Objectivity. Show Answer Correct Answer: B) Historical Cost. 18. The accounting process involves all of the following except A) Identifying economic transactions that are relevant to the business. B) Communicating financial information to users by preparing financial reports. C) Recording non quantifiable economic events. D) Analyzing and interpreting financial reports. Show Answer Correct Answer: C) Recording non quantifiable economic events. 19. Which of the following would not be considered an internal user of accounting data for the LMN Company? A) President of the company. B) Production manager. C) Merchandise inventory clerk. D) President of the employees' labor union. Show Answer Correct Answer: D) President of the employees' labor union. 20. Which of the following transactions is of a financial character and will be recorded in the business? A) Goods taken from the business by the proprietor for her personal use. B) Interviewing the candidates for employment. C) Sale of Household furniture Rs 5, 000. D) Received an order for sales of goods. Show Answer Correct Answer: A) Goods taken from the business by the proprietor for her personal use. 21. Managerial accounting is a provision of information to the ..... A) Internal parties. B) External parties. C) Statutory bodies. D) Current and potential investors. Show Answer Correct Answer: A) Internal parties. 22. Which of the following is an economic entity? A) A charitable institution. B) A grocery store. C) Both A and B. D) None of the above. Show Answer Correct Answer: C) Both A and B. 23. The description of the relation b/w a company's assets, liabilities, and equity, stated as Assets = Liabilities + Owner's Equity is known as: A) Income statement equation. B) Accounting equation. C) Return on equity ratio. D) Business equation. Show Answer Correct Answer: B) Accounting equation. 24. A ..... is the accounting term for a business deal. A) Sale. B) Transaction. C) Purchase. D) Payment. Show Answer Correct Answer: B) Transaction. 25. What is the nature of expense account? A) CR. B) DR. C) None of the above. D) None of above. Show Answer Correct Answer: B) DR. 26. It refers to the process of recording the accounts or transactions of an entity. It normally ends with the preparation of the trial balance. A) Bookkeeping. B) Recording. C) Communicating. D) Identifying. Show Answer Correct Answer: A) Bookkeeping. 27. In which accounting system, is unscientific method and does not provide complete and detailed records? A) Double Entry System. B) Single Entry System. C) Cash System. D) Mercantile System. Show Answer Correct Answer: B) Single Entry System. 28. If a company paid $ 6000 in advance for a year's worth of insurance, how much money would need to be adjusted after one month? A) $ 3000. B) $ 1000. C) $ 6000. D) $ 500. Show Answer Correct Answer: D) $ 500. 29. How would you journalize the replenishment of a petty fund? A) Debit Petty Cash and credit Cash. B) Debit Sales and credit Cash. C) Debit Expenses and credit Cash. D) Debit Cash and credit Petty Cash. Show Answer Correct Answer: C) Debit Expenses and credit Cash. 30. Which of the following pairs increase with credit entries? A) Supplies and retained earnings. B) Rent expense and unearned revenue. C) Accounts payable and owner's capital. D) Owner's capital and owner's drawings. Show Answer Correct Answer: C) Accounts payable and owner's capital. ← 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