This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The excess of expense over income is called Profit. A) True. B) False. Show Answer Correct Answer: B) False. 2. Calculate the trading stock deficit in 2022. (Question 1) A) 81000 / 150 + 79100 = 2050. B) 81000 + 150-79100 = 2050. C) 81000 x 150 / 79100 = 2050. D) 81000-150 + 79100 = 2050. Show Answer Correct Answer: B) 81000 + 150-79100 = 2050. 3. Which statement is incorrect regarding the Professional Regulatory Board of Accountancy (BOA)? A) It is under the supervision and administrative control of the Professional Regulation Commission. B) It is composed of a chairman and six (6) members appointed by the President of the Philippines. C) The Chairman and members of the BOA shall hold office for a term of three (3) years. D) No person shall serve in the BOA for more than six years. Show Answer Correct Answer: D) No person shall serve in the BOA for more than six years. 4. Rivera Company purchased merchandise from Dimatulac Suppliers for P3, 600 list price, subject to a trade discount of 25%. The goods were purchased on terms of 2/10, n/30, F.O.B. destination. Rivera paid P100 transportation costs. Rivera returned P400 (list price) of the merchandise to Dimatulac and later paid the amount due within the discount period. The amount paid is A) 2, 246. B) 2, 252. C) 2, 254. D) 2, 352. Show Answer Correct Answer: B) 2, 252. 5. Accounting for Intangible Assets are related to ..... A) AS-12. B) AS-26. C) AS-24. D) AS-10. Show Answer Correct Answer: B) AS-26. 6. (f) ..... :A document sent out by a supplier to a customer listing the transaction on the customer account, including all invoices and credit notes issued and all payments received from the customer. A) Goods dispatched (delivery) note (GDN). B) Credit advice. C) Goods received note (GRN). D) Statement. E) Debit advice. Show Answer Correct Answer: D) Statement. 7. How do you calculate Cost of Raw Materials Consumed? A) Purchases-Carriage In + Purchase Returns. B) Opening Inventory of Raw Materials + Purchases-Closing Inventory of Raw Materials. C) Closing Inventory of Raw Materials + Purchases-Opening Inventory of Raw Materials. D) Opening Inventory of Finished Goods + Purchases-Closing Inventory of Finished Goods. Show Answer Correct Answer: B) Opening Inventory of Raw Materials + Purchases-Closing Inventory of Raw Materials. 8. If Rita sells goods for cash, it will be recorded in A) Purchases book. B) Journal proper. C) Cash book. D) Sales book. Show Answer Correct Answer: C) Cash book. 9. What is the primary objective of the Companies Act 2016 in Malaysia as it relates to financial reporting? A) To simplify tax regulations for companies. B) To regulate the cryptocurrency market. C) To promote international trade agreements. D) To enhance corporate governance and financial transparency. Show Answer Correct Answer: D) To enhance corporate governance and financial transparency. 10. Mr. Kan brought cash to invest in the business of 100, 000 baht. It can be recorded in the account by A) Debit Cash 100, 000 baht Credit Debt 100, 000 baht. B) Debit Cash 100, 000 baht Credit Capital-Mr. Kan 100, 000 baht. C) Debit Cash 100, 000 baht Credit Withdrawal for personal use 100, 000 baht. D) Debit Capital 100, 000 baht Credit Cash 100, 000 baht. Show Answer Correct Answer: B) Debit Cash 100, 000 baht Credit Capital-Mr. Kan 100, 000 baht. 11. What two accounts are impacted when a company issues (sells) stock? A) Credit Cash (increase), Debit Common Stock (decrease). B) Credit Cash (decrease), Debit Common Stock (increase). C) Debit Cash (decrease), Credit Common Stock (increase). D) Debit Cash (increase), Credit Common Stock (decrease). Show Answer Correct Answer: D) Debit Cash (increase), Credit Common Stock (decrease). 12. What is the amount of prepayment for rates from October to December 2022? A) £575. B) £1, 150. C) £2, 300. D) £3, 450. Show Answer Correct Answer: B) £1, 150. 13. A company using the accrual method of accounting performed services on account in August. The services were for $ 2, 000.The customer will pay in the next month.Assuming that the company prepares monthly income statements, what will be the account debited for $ 2, 000 in August? A) Cash. B) Accounts Receivable. C) Service Revenue. D) None of above. Show Answer Correct Answer: B) Accounts Receivable. 14. Management accounting is concerned with both information and events from the past and in the future. Management account attempts to focus more on future events. A) False. B) True. Show Answer Correct Answer: B) True. 15. Find the term to match the meaning below:Total value of goods returned to the business from customers (e.g. because the goods sold were faulty) A) Carriage in. B) Sales returns. C) Warehouse expenses. D) Purchase returns. Show Answer Correct Answer: B) Sales returns. 16. A, B and C were partner in a firm sharing Profit in the ratio of 3:2:1 during the year the firm earned profit of Rs. 84, 000.Calculate the amount of Profit or Loss transferred to the capital A/c of B. A) Loss Rs. 87, 000. B) Profit Rs. 87, 000. C) Profit Rs.28, 000. D) Profit Rs.14, 000. Show Answer Correct Answer: C) Profit Rs.28, 000. 17. Which of the following is a credit item in an income and expenditure account? A) Bar suppliers. B) Electricity. C) Donation. D) Stationery. Show Answer Correct Answer: C) Donation. 18. The following is a journal to record depreciation of fixed assets:..... A) Asset depreciation expense (D); Accumulated depreciation of assets (K). B) Asset depreciation expense (D); Amortization expense (K). C) Amortization expense (D); Patent rights (K). D) Accumulated depreciation of assets(D); Asset depreciation expense (K). E) Amortization expense (D); Accumulated depreciation of assets (K). Show Answer Correct Answer: A) Asset depreciation expense (D); Accumulated depreciation of assets (K). 19. A person who cannot pay his debts is called A) Creditor. B) Debtor. C) Insolvent. D) None. Show Answer Correct Answer: C) Insolvent. 20. Profit and loss account reveals financial position of an organization A) True. B) False. Show Answer Correct Answer: B) False. 21. Book keeping is mainly concerned with the recording of financial data relating to the ..... in significant and orderly manner A) Monetary. B) Company. C) Business. D) Personal. Show Answer Correct Answer: C) Business. 22. Accounting is an information system that provides reports to users about the economic activities and condition of a business. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 23. Who is the world's richest men? A) Jeff Bezos. B) Steve Jobs. C) Bernard Arnault. D) Elon Musk. Show Answer Correct Answer: C) Bernard Arnault. 24. Which element is not a part of the typical company code data in general ledger accounts? A) Tax-related data. B) Field status groups. C) Line item display. D) Reconciliation account data. E) None of the above. Show Answer Correct Answer: E) None of the above. 25. Retiring a bill under rebate means payment of the bill before due date. A) True. B) False. Show Answer Correct Answer: A) True. 26. Within accounts receivable accounting, when a payment is made the bank account is debited and the appropriate customer account is credited. A) True. B) False. Show Answer Correct Answer: A) True. 27. The Audit Oversight Board (AOB) is established with the mission in assisting the Securities Commission. This mission is explained[NS1] by the following statements:i. Overseeing the auditors of public interest entities. ii. Protecting the interests of investors by promoting confidence in the quality and reliability of audited financial statements of public interest entities. iii. Overseeing the accountants of public interest entities. iv. Overseeing the Financial Reporting Foundation (FRF). A) I and ii. B) Ii and iii. C) Ii and iv. D) I and iii. Show Answer Correct Answer: A) I and ii. 28. Consignee becomes consignor's debtor when the goods are: A) Shipped by the consignor. B) Returned by consignee. C) Received by consignee. D) Sold by consignee. Show Answer Correct Answer: D) Sold by consignee. 29. Joint Venture is temporary partnership. A) False. B) True. Show Answer Correct Answer: B) True. 30. What is the purpose of financial accounting? A) To provide information about the financial position and performance of an organization to external users. B) To manage the human resources department of an organization. C) To track the inventory of a company. D) To provide information about the personal finances of employees. Show Answer Correct Answer: A) To provide information about the financial position and performance of an organization to external users. ← 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