This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the purpose of information presented in notes to the financial statements? A) To correct improper presentation in the financial statements. B) To provide disclosure required by generally accepted accounting principles. C) To present management's responses to auditor comments. D) To provide recognition of amounts not included in the totals of the financial statements. Show Answer Correct Answer: B) To provide disclosure required by generally accepted accounting principles. 2. Suspense Account shown in trial balance debit side will appear in A) Balance sheet assets side. B) Balance sheet liabilities side. C) Trading and Profit and loss account. D) None. Show Answer Correct Answer: A) Balance sheet assets side. 3. The balance on a firm's creditors control account at the end of an accounting period should equal ..... A) The total amount which the finn paid to its creditors during the period. B) The firm's total purchases for the period. C) The total of its list of creditors outstanding at the end of the period. D) The cost of the firm's sales for the period. Show Answer Correct Answer: C) The total of its list of creditors outstanding at the end of the period. 4. Which of the following is a primary users of final accounts A) Customers. B) Existing investors. C) Employees. D) Suppliers. Show Answer Correct Answer: B) Existing investors. 5. An expenditure that only provides economic benefits in the period in which the expenditure occurs is called..... A) Revenue Expenditures. B) Maintenance. C) Capital Expenditures. D) Replacement. Show Answer Correct Answer: A) Revenue Expenditures. 6. The final step in the accounting cycle is to prepare: A) Adjusting entries. B) Financial statement. C) Closing entries. D) A post-closing trial balance. Show Answer Correct Answer: D) A post-closing trial balance. 7. Which side of the ledger would increase capital? A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 8. The adoption of international accounting standards is an application of which of the following quality enhancing characteristics of financial information: A) Verifiability. B) Understandability. C) Timeliness. D) Comparability. E) Completeness. Show Answer Correct Answer: D) Comparability. 9. THE LINE ITEMS IN THE STATEMENT OF FINANCIAL POSITION OF AN SME(SMALL MEDIUM ENTERPRISE) INCLUDED ALL, EXCEPT A) DEFERRED TAX LIABILITIES. B) FINANCIAL LIABILITIES. C) TOTAL LIABILITIES IN A DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE. D) TRADE AND OTHER PAYABLES. Show Answer Correct Answer: C) TOTAL LIABILITIES IN A DISPOSAL GROUP CLASSIFIED AS HELD FOR SALE. 10. Principles of right and wrong that guide our decision making A) Transaction. B) Accounting. C) Asset. D) Ethics. Show Answer Correct Answer: D) Ethics. 11. Which of the following is not a non-current asset A) Fixed assets. B) Share capital. C) Long-term loans and advances. D) Non-current investments. Show Answer Correct Answer: B) Share capital. 12. It helps in knowing actual expenses and actual income during a particular time period. A) Matching Concept. B) Revenue Recognition Concept. C) Accrual Concept. D) Cost Concept. Show Answer Correct Answer: C) Accrual Concept. 13. On sales of Rs. 1500 to A at 5% trade discount, the sales account will be- A) Debited by Rs. 1575. B) Credited by Rs. 1500. C) Debited by Rs. 1425. D) Credited by Rs. 1425. Show Answer Correct Answer: D) Credited by Rs. 1425. 14. Translate this account into Vietnamese: "Cash on hand" A) Cash. B) Bank deposits. C) Money is moving. D) Cash and cash equivalents. Show Answer Correct Answer: A) Cash. 15. What is the half year's interest on the debenture not yet paid A) £1, 200. B) £2, 400. C) £1, 500. D) £2, 000. Show Answer Correct Answer: A) £1, 200. 16. The accounts that records expenses, gains and losses are A) Personal accounts. B) Real accounts. C) Nominal accounts. D) None of the above. Show Answer Correct Answer: C) Nominal accounts. 17. Shareholder's Equity is the sum of share capital and ..... A) Bonds. B) Drawings. C) Retained earnings. D) Profits. Show Answer Correct Answer: C) Retained earnings. 18. Joint Venture is a Temporary form of business organization. A) True. B) False. Show Answer Correct Answer: A) True. 19. Spongebob Squarepants' Best Friend A) Patrick Star. B) Squidward Tentacles. C) Eugene Krabs. D) Sandy Cheeks. Show Answer Correct Answer: A) Patrick Star. 20. Explain the concept of debit and credit in double-entry accounting. A) Debit means money is coming in, and credit means money is going out. B) Debit and credit are the same thing in accounting. C) Debit and credit only apply to personal bank accounts, not business accounts. D) Debit and credit are the two sides of every accounting transaction. Show Answer Correct Answer: D) Debit and credit are the two sides of every accounting transaction. 21. Account sales is submitted by consignee to the consignor. A) True. B) False. Show Answer Correct Answer: A) True. 22. An item of value held by an entity that is going to generate income in the future. A) Asset. B) Revenue. C) Liability. D) Expense. Show Answer Correct Answer: A) Asset. 23. A promissory note can be made payable to the bearer. A) True. B) False. Show Answer Correct Answer: B) False. 24. Returns Inwards is A) Sales Return. B) Purchases Return. C) Carriage. D) All. Show Answer Correct Answer: A) Sales Return. 25. Dishonour of a Bill means that the acceptor refuses to honour his commitment on due date and payment of the bill on presentation does not take place. A) True. B) False. Show Answer Correct Answer: A) True. 26. During 2018, Jack sold goods costing $ 450 to its subsidiary, Chan, at a mark-up of 25%. Chan had $ 150 of these goods on hand at Dec 31, 2018. What is the elimination worksheet entry to defer profit in ending inventory? A) Dr. Sales $ 30Cr. Cost of sales $ 30. B) Dr. Sales $ 37.5Cr. Cost of sales $ 37.5. C) Dr. Cost of sales $ 30Cr. Inventory $ 30. D) Dr. Cost of sales $ 37.5Cr. Inventory $ 37.5. E) None of the above. Show Answer Correct Answer: C) Dr. Cost of sales $ 30Cr. Inventory $ 30. 27. The cost of goods sold on hire purchase is transferred to A) Instalment a/c. B) Sales a/c. C) Hire purchase a/c. D) Purchase a/c. Show Answer Correct Answer: B) Sales a/c. 28. All of the following are transaction types that occur during the life of an asset except ..... A) Acquisition. B) Depreciation. C) Allocation. D) Retirement. Show Answer Correct Answer: C) Allocation. 29. Which statement in relation to a cash settled share-based payment transaction is true? A) The fair value of the liability shall be remeasured at the end of each reporting period. B) The fair value of the liability shall be remeasured at the date of settlement. C) The fair value of the liability shall be remeasured at every year-end and at the date of settlement. D) The fair value of the liability shall be remeasured at the date of grant. Show Answer Correct Answer: C) The fair value of the liability shall be remeasured at every year-end and at the date of settlement. 30. The amount by which the minimum rent exceeds the actual Royalty is known as Excess Workings. A) True. B) False. Show Answer Correct Answer: B) False. ← 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