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Financial Accounting Quiz 26 (30 MCQs)

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1. What do we call a cheque that the bank refused to pay the payee because the drawer has insufficient funds in his current account?
2. Identify the type of expenditure. Building extension to warehouse
3. Account currency determines the currency in which all the transactions are recorded.
4. In the case of cumulative preference shares unpaid dividend is treated as .....
5. ..... refers to the final section of a Profit and loss account and shows how the net profit after interest and tax is distributed, i.e.dividends to shareholders and/or retained profit kept by the business.
6. Result of operation of the Business Activity
7. At 31 May 2016 Moo was being sued by a supplier over a disputed contractMoo's solicitors advise that the supplier is likely to be successful and that damages of $ 100, 000 will be awarded against themHow should this be dealt with in the accounts?
8. Name the account credited for credit purchases
9. Mirah Company compiled the following financial information as of December 31, 2020:Revenues $ 340, 000Owner's Capital (1/1/20) 140, 000Equipment 80, 000Expenses 240, 000Cash 90, 000Owner's Drawings 20, 000Supplies 20, 000Accounts payable 40, 000Accounts receivable 70, 000Mirah's assets on December 31, 2020 are
10. P. Hack has a manufacturing business. The cost of his raw materials is $ 1, 900. Rates and rent total $ 2, 000 and factory wages amount to $ 2, 500.The number of units produced is 640, What is the cost of ONE unit?
11. The expense created by allocating the cost of plant and equipment to the periods in which they are used, representing the expense of using the assets, is called:
12. Diminishing balance method is proper for
13. In accordance with IAS 36 Impairment of Assets which of the following statements are true1. An impairment review must be carried out annually on all intangible assets.2. If the fair value less costs to sell of an asset exceed the carrying amount there is no need to calculate a value in use.3. Impairment is charged to the statement of profit or loss unless it reverses a gain that has been recognised in equity in which case it is offset against the revaluation surplus
14. Revenue = 1000Cost of Goods Sold = 200Expenses = 300Net Profit =?
15. Classification of industry based on source of raw material:
16. Opening Stock-47, 000:Purchases-48, 900:Wages-3, 500:Sales-1, 27, 000:Closing Stock-50, 000. Gross Profit-?
17. Office Salaries expense, rent expense, office supplies exp. are all included in
18. What are the key differences between financial accounting and managerial accounting?
19. On January 2 2011, ABC company purchased a machine for Rp. 100, 000, 000 with an economic life of 4 years. The machine has no residual value. What is the depreciation expense at the end of 2012 if you use the double declining balance method?
20. A record of all the transactions of a business.
21. This type of accounting is mainly for external users
22. In case of shortage, under stock and debtors system the profit element is debited to
23. Principle that says that statements must be presented honestly and accurately at all times.
24. In preparing its bank reconciliation for the month of April 2020, Sells, Inc. has available the following information.Balance per bank statement, 4/30/20 RM40, 290NSF check returned with 4/30/20 bank statement 1, 450Deposits in transit, 4/30/20 10, 200Outstanding checks, 4/30/20 15, 060Bank service charges for April 60What should be the adjusted cash balance at April 30, 2020?
25. Which of the following records the impact of a transaction step on financial accounting?
26. It helps in calculating tax on business income calculated for a particular time period.
27. Ram & Shyam are partners with the capital of Rs.25, 000 and Rs.15, 000 respectively. Interest payable on capital is 10% p.a. Find the profit to be shared by the partners if profit earned by the firm before interest charges is Rs.2, 400.
28. A trading account is prepared to disclose the
29. Ledgers come after Journal Entries True or False?
30. A cashbook which records both cash and bank transactions is called a ..... cashbook.
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