This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 29 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Double entries of:an owner investing cash into the business and bank in the money to the bank A) Dr. BankCr. Owner. B) Dr. BankCr. Capital. C) Dr. CashCr. Capital. D) Dr. OwnerCr. Bank. Show Answer Correct Answer: B) Dr. BankCr. Capital. 2. What type of error is 'the original figure may be incorrectly entered although the correct double-entry principle has been observed using incorrect figure'. A) Errors of original entry. B) Errors of omission. C) Errors of commission. D) Compensating errors. Show Answer Correct Answer: A) Errors of original entry. 3. Bought goods worth $ 4000 on credit from Ben. What is the double entry to record this transaction? A) Debit Purchases and Credit Cash. B) Debit Cash and Credit Purchases. C) Debit Ben and Credit Purchases. D) Debit Purchases and Credit Ben. Show Answer Correct Answer: D) Debit Purchases and Credit Ben. 4. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as A) Accounting ratio. B) Financial ratio. C) Costing ratio. D) None of the above. Show Answer Correct Answer: A) Accounting ratio. 5. An expenditure that generates economic benefits over more than one period is called..... A) Revenue Expenditures. B) Maintenance. C) Capital Expenditures. D) Replacement. Show Answer Correct Answer: C) Capital Expenditures. 6. Accounting Equation? A) Asset + Liability = Equity. B) Asset = Equity + Liability. C) Asset + Equity = Liability. D) None of above. Show Answer Correct Answer: B) Asset = Equity + Liability. 7. Motor van, building, furniture are examples of ..... A) Capital. B) Liabilities. C) Equity. D) Assets. Show Answer Correct Answer: D) Assets. 8. Cash and other assets expected to be exchanged for cash or consumed within a year. A) Current asset. B) Gain on plant asset. C) Modified half-year convention. D) Loss on plant asset. Show Answer Correct Answer: A) Current asset. 9. Furniture and Fixtures is classified as A) Noncurrent Liability. B) Noncurrent Asset. C) Current Asset. D) Current Liability. Show Answer Correct Answer: B) Noncurrent Asset. 10. What are the different types of financial ratios used in financial accounting analysis? A) Cash ratios, credit ratios, investment ratios, and debt ratios. B) Liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios. C) Growth ratios, stability ratios, risk ratios, and return ratios. D) Income ratios, expense ratios, asset ratios, and liability ratios. Show Answer Correct Answer: B) Liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios. 11. Financial records keeping were believed to have begun at about ..... years BC A) 2400. B) 150. C) 4000. D) 400. Show Answer Correct Answer: C) 4000. 12. Assets =?, Liabilities = $ 5, 000, Owner's Equity = $ 24, 000 A) $ 28, 000. B) $ 29, 000. C) $ 5, 000. D) $ 24, 000. Show Answer Correct Answer: B) $ 29, 000. 13. Which of the following is NOT one of the three main categories in the statement of cash flows? A) Operating activities. B) Financing activities. C) Investing activities. D) Administrative activities. Show Answer Correct Answer: D) Administrative activities. 14. Sources of increases to owner's equity are A) Expenses. B) Additional investments by owners. C) Withdrawals by the owner. D) Purchases of merchandise. Show Answer Correct Answer: B) Additional investments by owners. 15. When the share call is made and money is due from shareholders, the entry will be ..... A) Debit:Cash Account Credit:Share Call Account. B) Debit:Cash Account Credit:Share Capital. C) Debit:Share Capital Credit:Share Call Account. D) Debit:Share Call Account Credit:Share Capital. Show Answer Correct Answer: D) Debit:Share Call Account Credit:Share Capital. 16. Normative deriving the "true income" for an accounting period, or on discussing the type of accounting information A) False. B) True. Show Answer Correct Answer: B) True. 17. Why are redeemable shares shown under long term loans rather equity? A) Due to separate legal entity. B) Due to Concept of limited liability. C) Due to IAS 3. D) Due to substance over form concept. Show Answer Correct Answer: D) Due to substance over form concept. 18. Under the accrual basis of accounting, which of the following will not cause a change in owner's equity? A) Purchase of land. B) Advertising a product. C) Performing services on credit. D) All of the above. Show Answer Correct Answer: A) Purchase of land. 19. Shraddha Shipping Company started a voyage on 1 November 2021 and completed it on 28 February 2022. Annual insurance on freight= 18, 000= How much insurance amount will be recorded in the voyage account? A) 6, 000=. B) 1, 800=. C) 3, 600=. D) 18, 000=. Show Answer Correct Answer: A) 6, 000=. 20. The procedure of transferring journal entries to the ledger accounts is called (Prosedur pemindahan akun dari jurnal ke buku besar disebut) A) Reporting. B) Analyzing. C) Posting. D) Journalizing. Show Answer Correct Answer: C) Posting. 21. When considering an acquisition, which of the following is not a method by which one company may gain control of another company? A) Purchase of the majority of outstanding voting stock of the acquired company. B) Purchase of all assets and liabilities of another company. C) Purchase the assets, but not necessarily the liabilities, of another company previously in bankruptcy. D) All of the above methods result in a company gaining control over another company. Show Answer Correct Answer: D) All of the above methods result in a company gaining control over another company. 22. (i) ..... :A document confirming confirmation that a payment has been received, e.g. cash receipt A) Invoice. B) Debit advice. C) Quotation. D) Receipt. E) Credit advice. Show Answer Correct Answer: D) Receipt. 23. Which of the following is not the purpose of control account? A) Locate missing figures. B) Monitor the cash book. C) Check on errors of addition. D) Locate errors. Show Answer Correct Answer: B) Monitor the cash book. 24. Assets-Liabilities = Owner's Equity; the basis for keeping all accounting records in balance. A) Accounting Equation. B) Financial Equation. C) Financial Statements. D) Fiscal Period. Show Answer Correct Answer: A) Accounting Equation. 25. A bank reconciliation should be prepared A) Whenever the bank refuses to lend the company money. B) When an employee is suspected of fraud. C) To explain any difference between the depositor's balance per books and the balance per bank. D) By the person who is authorized to sign checks. Show Answer Correct Answer: C) To explain any difference between the depositor's balance per books and the balance per bank. 26. Who is known as the father of accounting? A) Sir William anson. B) F W Taylor. C) Warton. D) Fr Luca Pacioli. Show Answer Correct Answer: D) Fr Luca Pacioli. 27. Book of original entry A) Trial Balance. B) Final Accounts. C) Journal. D) Ledger. Show Answer Correct Answer: C) Journal. 28. Accounting treatment for department and branch account are one and the same A) True. B) False. Show Answer Correct Answer: B) False. 29. The firm that acquires a business and sell it to another company for profit is A) Corporate company. B) Seller. C) Promoter. D) A vendor. Show Answer Correct Answer: C) Promoter. 30. Which of the following statements is correct in relation to normative theories? A) Facts about current accounting practice are not considered in the development of normative theories. B) Normative theories often evolve as a result of research performed in relation to positive theories. C) Normative theories are not likely to evolve from the consideration of positive theories. D) Normative theories always evolve as a consequence or result of positive theories. Show Answer Correct Answer: B) Normative theories often evolve as a result of research performed in relation to positive theories. ← 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