This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 10 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The book of original entry A) Trial balance. B) Journal. C) Subsidiary book. D) Ledger. Show Answer Correct Answer: B) Journal. 2. Which assets are depreciated? A) Fixed assets. B) Variable assets. C) Cash-back assets. D) Current assets. Show Answer Correct Answer: A) Fixed assets. 3. A manufacturing account records the administrative expenses and the finance expenses of the business A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 4. Identify the type of expenditure. Cost of installing a new machine A) Capital. B) Revenue. Show Answer Correct Answer: A) Capital. 5. In accounting, everything is recorded in terms of money. A) Periodicity Concept. B) Money Measurement. C) Business Entity. D) Dual Aspect. Show Answer Correct Answer: B) Money Measurement. 6. The cost of a tape dispenser has been charged to an expense account although it will still be in use in 10 years time. Which accounting concept is being applied? A) Accrual concept. B) Going concern concept. C) Materiality concept. D) Prudence concept. Show Answer Correct Answer: C) Materiality concept. 7. Under hire purchase system the initial payment is known as A) Purchase price. B) Hire charges. C) First instalment. D) Down payment. Show Answer Correct Answer: D) Down payment. 8. In which year were the first 14 banks nationalized in India? A) 1955. B) 1949. C) 1969. D) 1980. Show Answer Correct Answer: C) 1969. 9. Which of the following would normally NOT be found in the notes to the financial statements? A) Accounting rules applied in the company's financial statements. B) Additional detail supporting numbers reported in the company's financial statements. C) Relevant financial information not presented in the company's financial statements. D) All of the above would be found in the notes to the financial statements. Show Answer Correct Answer: D) All of the above would be found in the notes to the financial statements. 10. Departments are located in A) Another city. B) Same place. C) Outside the city. D) Foreign country. Show Answer Correct Answer: B) Same place. 11. The timeliness principle assumes that an organization's activities can be divided into specific periods. A) True. B) False. Show Answer Correct Answer: A) True. 12. When a company pays a bill, the account Cash will be A) Debited. B) Credited. Show Answer Correct Answer: B) Credited. 13. According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on? A) Generally accepted accounting principles. B) Reporting on management's stewardship. C) The need for conservatism. D) The needs of the users of the information. Show Answer Correct Answer: D) The needs of the users of the information. 14. The purpose of trading account is to ascertain ..... A) Gross loss. B) Gross profit. C) Net profit/loss. D) Gross profit/loss. Show Answer Correct Answer: D) Gross profit/loss. 15. Adjusting entries are made at the beginning of the accounting period. A) False. B) True. Show Answer Correct Answer: A) False. 16. Which is a current asset? A) Land. B) Computer. C) Bank deposit. D) Car. Show Answer Correct Answer: C) Bank deposit. 17. Which of the following is nominal account A) Outstanding interest account. B) Prepaid interest account. C) Accrued Interest account. D) Interest Account. Show Answer Correct Answer: D) Interest Account. 18. It involves using financial data to assess a company's performance and make recommendations about how it can improve going forward A) FINANCIAL ANALYSIS. B) FINANCIAL REPORTING. Show Answer Correct Answer: A) FINANCIAL ANALYSIS. 19. Find the term to match the meaning below:Total value of inventory returned to suppliers by the business, (e.g. when the wrong goods are delivered by the supplier or a greater quantity than ordered is delivered) A) Carriage out. B) Carriage in. C) Sales returns. D) Purchase returns. Show Answer Correct Answer: D) Purchase returns. 20. At the end of the year, the balance on a firm's sales ledger control account was $ 12 900. The total of the customers' accounts in sales ledger was $ 11 900.The following errors were then discovered.1 A customer's account had been undercast by $ 700.2 A contra with a supplier in the purchases ledger of $ 200 had only been entered in the sales ledger control account.3 The discount allowed column in the cash book totalled $ 500. This had not been posted to the nominal ledger.What was the correct balance on the sales ledger control account? A) $ 11 200. B) $ 12 400. C) $ 12 000. D) $ 11 400. Show Answer Correct Answer: B) $ 12 400. 21. The Financial Reporting Standards Council (FRSC) was created by the BOA to assist the BoA in carrying out its power and function to A) Promulgate accounting standards in the Philippines. B) Promulgate auditing standards in the Philippines. C) Ensure that all higher educational instruction and offering of accountancy comply with the policies, standards and requirements of the course prescribed by CHED. D) Implement the CPE program. Show Answer Correct Answer: A) Promulgate accounting standards in the Philippines. 22. Who are the primary users of financial accounting information? A) Investors, creditors, government agencies, and management. B) Athletes, coaches, and fans. C) Students, teachers, and parents. D) Doctors, nurses, and patients. Show Answer Correct Answer: A) Investors, creditors, government agencies, and management. 23. Provision for Doubtful Debts is calculated on A) Profit. B) Debtors. C) Creditors. D) Capital. Show Answer Correct Answer: B) Debtors. 24. Which of these best describes fixed assets? A) Are items which will not wear out quickly. B) Are expensive items bought for the business. C) Are bought to be used in the business. D) Are of long life and are not bought specifically for resale. Show Answer Correct Answer: D) Are of long life and are not bought specifically for resale. 25. A business purchases equipment cash. In which account is the debit entry made? A) Cash. B) Equipment. Show Answer Correct Answer: B) Equipment. 26. Which of the following is an example of accrued expenses? A) Income tax payable. B) Prepaid expenses. C) Revenue payable. D) Wages payable. Show Answer Correct Answer: D) Wages payable. 27. The eight recurring steps performed each accounting period, starting with recording transaction in the journal and continuing through the post-closing trial balance is called the A) Accounting period. B) Operating cycle. C) Accounting cycle. D) Natural business year. E) Closing cycle. Show Answer Correct Answer: C) Accounting cycle. 28. Identify the type of expenditure. Transportation costs on purchases A) Capital. B) Revenue. Show Answer Correct Answer: B) Revenue. 29. Short workings irrecoverable are transferred to A) Profit and loss a/c. B) Minimum Rent a/c. C) Royalty a/c. D) Land Lord a/c. Show Answer Correct Answer: A) Profit and loss a/c. 30. Capital Receipts and Payments appear in A) Trading Account. B) Profit and Loss Account. C) Balance Sheet. D) All. Show Answer Correct Answer: C) Balance Sheet. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesFinancial Accounting Quiz 1Financial Accounting Quiz 2Financial Accounting Quiz 3Financial Accounting Quiz 4Financial Accounting Quiz 5Financial Accounting Quiz 6Financial Accounting Quiz 7Financial Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books