This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 17 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a manufacturing account, prime cost comprises three cost:direct materials, direct labour and factory overhead A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 2. Accounting terms used to describe the excess of current assets over current liabilities is A) Reserved capital. B) Subscribed capital. C) Share capital. D) Working capital. Show Answer Correct Answer: D) Working capital. 3. ..... are goods or cash withdrawn by the owner of a business at interval for his own use A) Contra entries. B) Capital. C) Drawing. D) Income. Show Answer Correct Answer: C) Drawing. 4. This type of accounting analyses financial information in detail to work out the costs of individual products A) Management Accounting. B) Financial Accounting. Show Answer Correct Answer: A) Management Accounting. 5. COGS Stands for? A) Cost Out of Goods Sold. B) Closing Opening Goods Stock. C) Cost Of Goods Sold. D) None of above. Show Answer Correct Answer: C) Cost Of Goods Sold. 6. WHICH ARE THE THREE COMMONLY USED TOOLS OF FINANCIAL STATEMENT ANALYSIS, EXCEPT A) VERTICAL ANALYSIS. B) HORIZONTAL ANALYSIS. C) RATIO ANALYSIS. D) FINANCIAL ANALYSIS. Show Answer Correct Answer: D) FINANCIAL ANALYSIS. 7. The unfavorable balance of Profit and Loss account should be: A) Added in liabilities. B) Subtracted from capital. C) Subtracted from liabilities. D) Subtracted from current assets. Show Answer Correct Answer: B) Subtracted from capital. 8. Round 15.67348 to the correct decimal place so that it deals with money. A) $ 15.673. B) $ 15.7. C) $ 15.67. D) $ 15.68. Show Answer Correct Answer: C) $ 15.67. 9. Which of the following reasons is not a reason for a company to create its own Tangible Fixed Assets? A) The acquisition price is definitely cheaper. B) Utilize idle facilities. C) Obtain a Tangible Fixed Asset with good quality. D) No other party can provide the Tangible Fixed Assets required according to the company's desired criteria. E) All are correct. Show Answer Correct Answer: A) The acquisition price is definitely cheaper. 10. New-partner pays premium for goodwill, which will be shared by old partners in their new profit-sharing ratio A) True. B) False. Show Answer Correct Answer: B) False. 11. THE PERMISSION REQUIRED FROM ..... IN THE CASE OF BILLS OF EXCHANGE A) DRAWER. B) BANK. C) DRAWEE. D) PAYEE. Show Answer Correct Answer: A) DRAWER. 12. The Accumulated Depreciation account is a contra asset account. A) False. B) True. Show Answer Correct Answer: B) True. 13. What is net worth of a business? A) Balance sheet. B) Owner's equity. C) Statement. D) Income statement. Show Answer Correct Answer: B) Owner's equity. 14. Your boss decides to purchase a luxury suite at Mudhens Stadium. This purchase provides a venue to do which of the following? A) Accomplish more office work. B) Develop business networks and foster relationships with potential clients through social vs. business environments. C) Store important record. D) Spy on your competitors. Show Answer Correct Answer: B) Develop business networks and foster relationships with potential clients through social vs. business environments. 15. This type of accounting is legally required A) Financial Accounting. B) Mangement Accounting. Show Answer Correct Answer: A) Financial Accounting. 16. Business is distinct from the owner. This concept is called ..... A) Cost concept. B) Going concern concept. C) Business entity concept. D) Money measurement concept. Show Answer Correct Answer: C) Business entity concept. 17. When closing the withdrawals account A) A liability account should be credited. B) The income summary account should be debited. C) The income summary account should be credited. D) The owner's capital should be debited. E) The owner's capital account should be credited. Show Answer Correct Answer: D) The owner's capital should be debited. 18. A/c to be charged when proprietor withdraws funds A) Bank. B) Drawings. C) Cash. D) Capital. Show Answer Correct Answer: B) Drawings. 19. Purchase Return Book is used to record A) Return of goods purchase in cash. B) Return of goods purchase on credit. C) None of the above. D) None of above. Show Answer Correct Answer: B) Return of goods purchase on credit. 20. To increase the balance in the following accounts, would you debit the account or would you credit the account?Service Revenue A) Credit. B) Debit. Show Answer Correct Answer: A) Credit. 21. Accounting doesn't record non-financial transactions because of A) Entity concept. B) Accrual concept. C) Measurement concept. D) None of above. Show Answer Correct Answer: C) Measurement concept. 22. What is the focus of managerial accounting? A) Future planning and decision-making. B) Managing risks within a business. C) Presenting information to internal managers. D) Reporting on past transactions and events. Show Answer Correct Answer: A) Future planning and decision-making. 23. A current asset is generally converted into cash within a year or operating period A) False. B) True. Show Answer Correct Answer: B) True. 24. What is the periodical statement sent by the consignee to the consignor? A) Performa Invoice. B) Account sales. C) Both. D) None of the above. Show Answer Correct Answer: B) Account sales. 25. Paid wages by bank transfer what is the double entry A) Dr WagesCr Bank. B) Dr wagesCr Cash. C) Dr BankCr wages. D) Dr CashCr Wages. Show Answer Correct Answer: A) Dr WagesCr Bank. 26. Subscription received in advance is A) An Income. B) A liability. C) An Expense. D) An Asset. Show Answer Correct Answer: B) A liability. 27. The reason a company discontinues fixed assets is because of the following, except..... A) Change plus. B) Destroyed. C) Damaged. D) For sale. E) Bored. Show Answer Correct Answer: E) Bored. 28. Sales & Purchase book doesn't record A) Credit Sales & Purchase. B) Credit Sales. C) Credit Purchase. D) Cash Sales & Purchase. Show Answer Correct Answer: D) Cash Sales & Purchase. 29. The equipment bought at a price of Php 450, 000 has an economic life of 5 years and a salvage value of Php 50, 000. The cost of money is 12% per year. Compute the first year depreciation using Declining Balance Method NOTES:SV = FC (1-K)*n50, 000 = 450, 000 (1-K)*5K = 0.356 A) 160.200. B) 50.000. C) 250.000. D) 450.000. Show Answer Correct Answer: A) 160.200. 30. Current liabilities A) Are closed at the end of the accounting period to current assets. B) Are to be settled within the shorter of one year or the operating cycle. C) Are listed in order of liquidity. D) Are listed in order in which they are to be paid, with the first one listed to be paid first. E) Are due to be settled after one year or the operating cycle. Show Answer Correct Answer: D) Are listed in order in which they are to be paid, with the first one listed to be paid first. ← 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