This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 15 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 15 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A suspense account has a balance of $ 450 debit. What has caused this balance in the suspense account? A) Motor expenses of $ 225, correctly entered in cash book, & posted to motor expenses as a credit. B) Motor expenses of $ 225, entered in cash book as a receipt & posted to motor expenses as credit. C) Motor expenses of $ 450, correctly entered in cash book, & posted to motor vehicles as a debit. D) Motor expenses of $ 675, entered in the cash book as a credit of $ 225 and posted to motor expenses as $ 225 debit. Show Answer Correct Answer: A) Motor expenses of $ 225, correctly entered in cash book, & posted to motor expenses as a credit. 2. When bonds are sold, the gain or loss on sale is thedifference between the: A) Sales price and the cost of the bonds. B) Net proceeds and the cost of the bonds. C) Sales price and the market value of the bonds. D) Net proceeds and the market value of the bonds. Show Answer Correct Answer: B) Net proceeds and the cost of the bonds. 3. How does double-entry accounting help in detecting errors and fraud? A) By creating confusion and making it harder to identify errors. B) By allowing for more errors to go undetected. C) By making it easier to manipulate financial records. D) By providing a cross-check for accuracy. Show Answer Correct Answer: D) By providing a cross-check for accuracy. 4. AN ENTITY SHALL DISCLOSE THE FAIR VALUE OF WHICH OF THE FOLLOWING ASSETS MEASURED AT COST LESS ANY ACCUMULATED DEPRECIATION AND ANY ACCUMULATED IMPAIRMENT LOSSES? A) BIOLOGICAL ASSETS. B) PROPERTY, PLANT AND EQUIPMENT. C) INVESTMENT PROPERTY. D) BOTH A AND C. Show Answer Correct Answer: C) INVESTMENT PROPERTY. 5. Donation to a club are A) Credited to the income and expenditure account. B) Credited to receipts and payments account. C) Debited to income and expenditure account. D) Debited to donation account. Show Answer Correct Answer: A) Credited to the income and expenditure account. 6. Types of errors Accounting A) Errors of Principle. B) Errors of Omission. C) Errors of commission. D) All the above. Show Answer Correct Answer: D) All the above. 7. Amount invested in a business is called A) Capital. B) Liability. C) Asset. D) Investment. Show Answer Correct Answer: A) Capital. 8. What accounting system matches Measurement of profit or loss, assets, liabilities and capital? A) FINANCIAL STATEMENTS. B) Arithmetical checking of double-entry bookkeeping. C) Books of prime entry. D) Trial balance. Show Answer Correct Answer: A) FINANCIAL STATEMENTS. 9. Discount received has A) Debit balance. B) Credit balance. C) Both debit and credit balance. D) None of above. Show Answer Correct Answer: B) Credit balance. 10. Revenue that is earned but not yet collected. A) Account Payable. B) Accrued Expense. C) Accrued Revenue. D) Accrued Liability. Show Answer Correct Answer: C) Accrued Revenue. 11. 'Paid Wages' here wages account will be credited. State whether the statement is A) True. B) Partially True. C) False. D) None of the above. Show Answer Correct Answer: C) False. 12. The deduction obtained if you use the terms 3/10, n/30 A) 0, 3%. B) 10%. C) 3%. D) 30%. Show Answer Correct Answer: C) 3%. 13. Subscription received by a school for organising annual function is treated as: A) Capital Receipt (i.e., Liability). B) Revenue Receipt {i.e., Income). C) Asset. D) Earned Income. Show Answer Correct Answer: A) Capital Receipt (i.e., Liability). 14. Which of the following is increased with a credit? A) Withdrawals. B) Depreciation Expense. C) Accumulated Depreciation. D) Accounts Receivable. Show Answer Correct Answer: C) Accumulated Depreciation. 15. Major forms of organizations we studied are Proprietary firms, Partnership firms and ..... A) Cooperatives. B) Public Sector Enterprises. C) NGOs. D) Joint Stock Companies. Show Answer Correct Answer: D) Joint Stock Companies. 16. Cash discount is given A) Payment receiving in cash before time. B) On sale of goods. C) On purchase of goods on credit. D) On purchase of goods for cash. Show Answer Correct Answer: A) Payment receiving in cash before time. 17. Which branch of accounting is more valuable for making decisions about the future? A) Managerial accounting. B) Audit. C) Financial accounting. D) Tax accounting. Show Answer Correct Answer: A) Managerial accounting. 18. Journal Entry to record-Goodwill being created / raised in the books- A) Goodwill DebitExisting Partner's Capital Accounts Credit. B) Existing Partner's Capital Accounts DebitGoodwill Credit. C) Old Partner's Capital Accounts DebitGoodwill Credit. D) Goodwill DebitOld Partner's Capital Accounts Credit. Show Answer Correct Answer: D) Goodwill DebitOld Partner's Capital Accounts Credit. 19. Accountants who provide audit and tax consulting services A) Government Accountant. B) Internal Accountant. C) Public Accountant. D) Educator Accountant. Show Answer Correct Answer: C) Public Accountant. 20. Discuss the concept of inventory valuation methods in accounting. A) There are several inventory valuation methods in accounting, including FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost method. B) Average selling price method. C) Specific Identification method. D) FIFO (First In, Last Out). Show Answer Correct Answer: A) There are several inventory valuation methods in accounting, including FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost method. 21. What is the advantage of a bank reconciliation statement? A) To record daily cash transactions. B) To calculate business profits. C) To prepare financial statements for the business. D) To detect errors or mistakes made by the business and the bank. Show Answer Correct Answer: D) To detect errors or mistakes made by the business and the bank. 22. When the hire purchaser makes default in paying the instalment the hire vendor has A) He has to approach the court. B) The option to reposses the assets. C) The right to take repossession of the asset. D) No right to take repossession. Show Answer Correct Answer: C) The right to take repossession of the asset. 23. Fixed assets are recorded at cost less depreciation value due to the concept of ..... A) GOING CONCERN CONCEPT. B) ACCOUNTING PERIOD CONCEPT. C) MONETARY UNIT CONCEPT. D) BUSINESS ENTITY CONCEPT. Show Answer Correct Answer: A) GOING CONCERN CONCEPT. 24. (g) ..... :A document sent by a supplier to a customer in respect of goods returned or overpayment made by customer. It is a negative invoice. A) Debit note. B) Goods received note (GRN). C) Credit note. D) Goods dispatched (delivery) note (GDN). E) Statement. Show Answer Correct Answer: C) Credit note. 25. Which is a current liability? A) Trade accounts payable. B) 2 year loan. C) Long term loan. D) Investment. Show Answer Correct Answer: A) Trade accounts payable. 26. This type of accounting records historic transactions A) Financial Accounting. B) Management Accounting. Show Answer Correct Answer: A) Financial Accounting. 27. What will usually cause an asset account to increase? A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 28. The basic elements of financial statements are classified into how many groups by the IASB? A) 3. B) 4. C) 5. D) 2. Show Answer Correct Answer: D) 2. 29. ..... and ..... are the two methods of preparing trading, profit and loss account A) Vertical and horizontal. B) Vertical and parallel. C) T and vertical. D) T and horizontal. Show Answer Correct Answer: C) T and vertical. 30. All taxes can be divided into how many basic types? A) 2. B) 3. C) 5. D) 10. Show Answer Correct Answer: B) 3. ← 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