This quiz works best with JavaScript enabled. Home > Finance > Accounting > Accounting > Accounting – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Accounting Quiz 27 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A general ledger/T account 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. 2. David's firm has a high school internship program. In the past, most if its applicants have been from affluent local high schools. David decides to do a presentation at a school in a low-income area to encourage more applicants from that school. This action shows David's ..... A) Work ethic. B) Respect for diversity. C) Punctuality. D) Accountability. Show Answer Correct Answer: B) Respect for diversity. 3. The transaction is assumed to be material or significant when its inclusion or exclusion will have an effect on the decision of the user of the information. A) Materiality. B) Industry practice. C) Conservatism. D) Cost-benefit. Show Answer Correct Answer: A) Materiality. 4. The IASB was formed A) To establish accounting standards for multinational entities. B) To enforce IFRS in foreign countries. C) To develop accounting standards for countries that do not have their own standard-setting bodies. D) To develop a single set of high quality IFRS. Show Answer Correct Answer: D) To develop a single set of high quality IFRS. 5. Which of the following entities creates an annual handbook of accounting principles for governmental entities? A) GAO. B) GAAP. C) FASAB. D) SEC. Show Answer Correct Answer: C) FASAB. 6. An exchange of goods or services with another party is best called in accounting a A) Swapping goods. B) Barter system. C) A transaction. D) A sale. Show Answer Correct Answer: C) A transaction. 7. Assets are recorded at their original purchase price according to the: A) Consistency Principle. B) Historical Cost Principle. C) Materiality Principle. D) Cost Benefit Principle. Show Answer Correct Answer: B) Historical Cost Principle. 8. "Accounting information must be presented to the users in time to fulfil their decision making needs" . This statement is referring to which characteristic of useful managerial accounting information? A) Timeliness. B) Accuracy. C) Cost effectiveness. D) Relevance. Show Answer Correct Answer: A) Timeliness. 9. According to principle of conservatism: A) Provision is made for bad and doubtful debts. B) Depreciation is charged on assets. C) Recording is made of outstanding expenses. D) All of the above. Show Answer Correct Answer: A) Provision is made for bad and doubtful debts. 10. Which type of business organization has the following characteristics? is owned by 2 to 20 personhas unlimited liabilityhas no legal obligation to audit the accounts A) Sole trader. B) Partnership. C) Company. D) None of above. Show Answer Correct Answer: B) Partnership. 11. This enhancing quality assures users that the information faithfully represents the data it intends to communicate. A) Comparability. B) Verifiability. C) Timeliness. D) Understandability. Show Answer Correct Answer: B) Verifiability. 12. Which of the following is not one of the necessary processes performed in accounting in order to provide information that is useful to interested users? A) Recording. B) Identifying. C) Summarizing. D) Counting. Show Answer Correct Answer: D) Counting. 13. Which of the following accounting concepts means that similar items should receive a similar accounting treatment? A) Accruals. B) Consistency. C) Going concern. D) Matching. Show Answer Correct Answer: B) Consistency. 14. Accounting is important due to following reasons A) Replacement of memory. B) Settlement of tax liability. C) Legal Evidence. D) Sale of Business. E) All of the above. Show Answer Correct Answer: E) All of the above. 15. The process of recording, classifying, analyzing and interpreting business data is called ..... A) Transaction. B) Accounting. C) Auditing. D) Book-keeping. Show Answer Correct Answer: B) Accounting. 16. ( 1.3.4 Politicization phase ( 1973-present) )Under Politicization Phase, Financial Accounting Standard Board (FASB) was established by adopted deductive ..... to the formulation of accounting standard. A) Substantive-political. B) Modern-political. C) Quasi-political. D) Sampling-political. Show Answer Correct Answer: C) Quasi-political. 17. Where ..... ends ..... begins A) Book keeping and accounting. B) Accounting and book keeping. C) Book keeping and finance. D) Finance and accounting. Show Answer Correct Answer: A) Book keeping and accounting. 18. Managers need useful information in order to make decisions, to plan and to control the company. Therefore, there are three main components to consider. Which of the following is not one of those options? A) Control. B) Planning. C) Organising. D) Decision Making. Show Answer Correct Answer: C) Organising. 19. The primary purpose of accounting is to ..... A) Stop fraud and neglect. B) Generate company profits. C) Keep financial records. D) Report financial information. Show Answer Correct Answer: C) Keep financial records. 20. A set of rules (often used within a company) which show the correct way to behave A) Code of conduct. B) Tax advisor. C) Sales ledger clerk. D) Payroll clerk. Show Answer Correct Answer: A) Code of conduct. 21. Which type of business organization has a separate legal entity from its owners, and the owners are not liable for debts of business? A) Sole trader. B) Partnership. C) Limited Company. D) None of the above. Show Answer Correct Answer: C) Limited Company. 22. Data are checked by A) External users. B) Internal users. C) External users + Internal users. D) None of the answers. Show Answer Correct Answer: C) External users + Internal users. 23. When should you replenish a petty cash fund? A) Every week. B) At the end of the month. C) When it has reached a certain dollar amount. D) Both at the end of the month and when it has reached a certain dollar amount. Show Answer Correct Answer: D) Both at the end of the month and when it has reached a certain dollar amount. 24. Why would a bank statement not match business records? A) Service fees. B) Outstanding cchecks. C) Outstanding deposits. D) All of these. Show Answer Correct Answer: D) All of these. 25. These users need accounting information in order to regulate businesses that are within the scope of their legal authority. A) Employees. B) Creditors. C) Auditors. D) Government regulatory bodies or agencies. Show Answer Correct Answer: D) Government regulatory bodies or agencies. 26. Which of the following is NOT a financial statement A) Balance Sheet. B) Income Statement. C) Cash flow statement. D) General Journal. Show Answer Correct Answer: D) General Journal. 27. A business owns a non-current asset which cost $ 4, 000 and is recorded at its carrying amount in the financial statements. Which of the following accounting principles has been applied? A) Business entity. B) Going concern. C) Consistency. D) Money measurement. Show Answer Correct Answer: B) Going concern. 28. The information includes everything necessary to reflect what happened for all of the business activities for which the firm is reporting. A) Neutrality. B) Completeness. C) Verifiability. D) Freedom from error. Show Answer Correct Answer: B) Completeness. 29. According to most large company CFOs, SOX has ..... A) Increased investor confidence. B) Decreased company profits. C) Increased fraud. D) Decreased stock prices. Show Answer Correct Answer: A) Increased investor confidence. 30. Which of the following is an advantage of accounting? A) Detection of errors. B) Incomplete information. C) Based on historical cost. D) Omission of qualitative information. Show Answer Correct Answer: A) Detection of errors. ← 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