This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 12 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Allocation of costs obtained from natural sources during certain resource utilization periods, namely A) Depletion. B) Amortization. C) Goodwill. D) Acquisition cost. E) Depreciation. Show Answer Correct Answer: A) Depletion. 2. Lona wants to a buy raincoat for her goat. If the raincoat costs $ 39.99 and has a sales tax rate of 7%. What will be the FINAL PRICE (with tax) of the raincoat? A) $ 42.79. B) $ 2.79. C) $ 42.78. D) $ 2.80. Show Answer Correct Answer: A) $ 42.79. 3. ..... are non-cash expenses that are created by accountants to spread out the cost of capital assets. A) Depreciation. B) Interest. C) Provisions. D) None of above. Show Answer Correct Answer: A) Depreciation. 4. Terms for when payments for merchandise to be made, agreed on by buyer and seller. A) Sales Discount. B) Credit Terms. C) Credit Period. D) Invoice. Show Answer Correct Answer: B) Credit Terms. 5. Pay attention to the following data:Beginning inventory 1, 000 kg @ Rp. 3, 000 Purchase I 5, 000 kg @ Rp. 3, 500 Sales I 3, 000 kg Purchase II 2, 000 kg @ Rp. 3, 750 Sales II 2, 500 kg If using the FIFO method, the ending inventory value is..... A) Rp 8.200.500. B) Rp 9.250.000. C) Rp 8.500.170. D) Rp 7.500.000. Show Answer Correct Answer: B) Rp 9.250.000. 6. ..... is the discount received from suppliers for prompt payment of our accounts A) Discount allowed. B) Discount received. C) Sales. D) Creditor. Show Answer Correct Answer: B) Discount received. 7. Governed by the Civil Code of the Philippines. A) Sole Proprietorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: B) Partnership. 8. Which of the following is not included in faithful representation? A) Completeness. B) Free from error. C) Free from Bias. D) Free from fraud. Show Answer Correct Answer: D) Free from fraud. 9. Capital can be acquired to start a business from: A) Personal Savings. B) Business Loans. C) Investments. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. What is the equation for the fundamental accounting identity? A) Assets = Liabilities-Equity. B) Assets + Equity = Liabilities. C) Liabilities + Equity = Assets. D) None of above. Show Answer Correct Answer: C) Liabilities + Equity = Assets. 11. Creditor may be ..... types A) 2. B) 5. C) 4. D) 3. Show Answer Correct Answer: C) 4. 12. Department accounts are prepared to know the A) Efficiency of the department. B) Profit made. C) Performance of department. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. Types of business A) 6. B) 5. C) 3. D) 4. Show Answer Correct Answer: C) 3. 14. Which accounting standard relevant to group accounting specifically requires disclosures that enable users to evaluate the financial effects of adjustments recognized in the current reporting period that relate to acquisition that occurred in the current or previous reporting periods? A) IFRS 12. B) IFRS 5. C) IFRS 3. D) IFRS 1. Show Answer Correct Answer: C) IFRS 3. 15. The average clause is applicable when the actual loss is less than the sum assured. A) True. B) False. Show Answer Correct Answer: B) False. 16. Maximum amount Share Capital that a company can raise will be stated in the ..... of Memorandum of Association A) Capital Clause. B) Object Clause. C) Association Clause. D) Liability Clause. Show Answer Correct Answer: A) Capital Clause. 17. The accounting book that controls the balance of every ledger account. It is used to record changes in assets, liabilities, and owner's equity. Which account book is it? A) General ledger. B) Special journal. C) Sub-ledger. D) General journal. Show Answer Correct Answer: A) General ledger. 18. Owner's equity can be described as A) Creditorship claim on total assets. B) Ownership claim on total assets. C) Benefactor's claim on total assets. D) Debtor claim on total assets. Show Answer Correct Answer: B) Ownership claim on total assets. 19. Under FRS 102, dividends paid; A) Are included as an appropriation on the face of the Statement of Comprehensive Income. B) Are included as an appropriation on the Statement of Changes in Equity. C) Are included as an expense on the face of the Statement of Comprehensive Income. D) Are included as an exceptional item on the Statement of Comprehensive Income. Show Answer Correct Answer: B) Are included as an appropriation on the Statement of Changes in Equity. 20. Franchise fees are properly recognized as revenue A) When received in cash. B) When a contractual agreement has been signed. C) After the franchise business has begun operations. D) After the franchiser has substantially performed its service. Show Answer Correct Answer: D) After the franchiser has substantially performed its service. 21. What sales price should be recorded when an item having a P90, 000 list price is sold with 15% trade discount? The sales invoice includes the terms 2/10, n/30. A) P 80, 000. B) P 74, 700. C) P 78, 300. D) P 76, 500. Show Answer Correct Answer: D) P 76, 500. 22. Which of the following is an example of a liability? A) Inventory. B) Receivables. C) Plant and machinery. D) Loan. Show Answer Correct Answer: D) Loan. 23. A claim against a customer for sales made on credit is an account payable. A) False. B) True. Show Answer Correct Answer: A) False. 24. Which of the following is considered plant (permanent) assets? A) Land, Building, Cash. B) Land, Building, Equipment. C) Cash, Accounts Receivable, Supplies. D) Cash, Accounts Receivable, Land. Show Answer Correct Answer: B) Land, Building, Equipment. 25. What is the general rule for dealing with Work-in-Progress on a manufacturing account? A) Add opening WIP and closing WIP. B) Subtract opening WIP and add closing WIP. C) Add opening WIP and subtract closing WIP. D) Subtract opening WIP and closing WIP. Show Answer Correct Answer: C) Add opening WIP and subtract closing WIP. 26. Which branch of accounting is heavily regulated? A) Managerial accounting. B) Tax accounting. C) Financial accounting. D) Audit. Show Answer Correct Answer: C) Financial accounting. 27. Which of the following is TRUE about the Security Commission (SC) Malaysia: A) SC is a company incorporated under Companies Act 2016. B) SC's main functions are the encouragement and promotion of the development of the capital market in Malaysia through the regulation and enforcement of all matters relating to the securities industry. C) SC directly involved in the development of accounting standards in Malaysia. D) SC's functions also include promoting and regulating corporate governance and approved accounting standards among both public and private companies. Show Answer Correct Answer: B) SC's main functions are the encouragement and promotion of the development of the capital market in Malaysia through the regulation and enforcement of all matters relating to the securities industry. 28. Tee Co. recorded the sale of P6, 000. If the sale was subject to a 20% trade discount and credit terms of 5/10, n/60, the list price was ..... A) P 7, 700. B) P 7, 500. C) P 4, 800. D) P 4, 500. Show Answer Correct Answer: B) P 7, 500. 29. Royalty paid on sales is debited to the profit and loss a/c A) True. B) False. Show Answer Correct Answer: A) True. 30. Meaning of double entry system A) Two entries in one book. B) Two entries in one account. C) Entries in both sides of one transaction. D) Entries in two personal accounts. Show Answer Correct Answer: C) Entries in both sides of one transaction. ← 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