This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 34 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who has been appointed as the 1st chairman of the International Financial Services Centre Authority for a 3 years term? A) Ingiti Srinivas. B) Sumant Chowdhury. C) Anant Narayan Nanda. D) Arun Goel. Show Answer Correct Answer: A) Ingiti Srinivas. 2. Accountants should use ..... when making payments to vendors. A) Checks. B) Receipts. C) Cash. D) Vouchers. Show Answer Correct Answer: D) Vouchers. 3. The place where transactions are first recorded is called the A) Daily log. B) Daysheet. C) Charge journal. D) General journal. E) All of these are correct. Show Answer Correct Answer: E) All of these are correct. 4. The profit made by a business in 2017 was P35, 400. The proprietor injected new capital of P10, 200 during the year and withdrew a monthly salary of P500. If the net assets at the end of 2017 were P95, 100, what was the proprietor's capital at the beginning of the year? A) 50, 000. B) 134, 700. C) 55, 500. D) 63, 900. Show Answer Correct Answer: C) 55, 500. 5. A list of the assets, liabilities, and stock holder's equity as of a specific date, usually at the close of the last day of a month or a year; balances the accounting equation. A) Balance Sheet. B) Retained Earnings Statement. C) Statement of Cash Flows. D) Income Statement. Show Answer Correct Answer: A) Balance Sheet. 6. ..... is the excess of the purchase consideration over the net value of assets A) Cash. B) Purchase consideration. C) Capital reserve. D) Goodwill. Show Answer Correct Answer: D) Goodwill. 7. What accounting system records the dual aspect of business transactions A) DOUBLE-ENTRY SYSTEM OF LEDGERS. B) FINANCIAL STATEMENTS. C) BOOKS OF PRIME ENTRY. D) TRIAL BALANCE. Show Answer Correct Answer: A) DOUBLE-ENTRY SYSTEM OF LEDGERS. 8. Financial Accounting is an ..... A) Art of . B) Science of . C) Commerce. D) Art & science of . E) None of the above. Show Answer Correct Answer: D) Art & science of . 9. Amounts of money owed to a medical practice for professional services rendered are A) Accounts payable. B) Major medical expenses. C) Actual charges. D) Accounts receivable. Show Answer Correct Answer: D) Accounts receivable. 10. All the following are users of accounting information except A) Debtors. B) Government. C) Management. D) Shareholders. Show Answer Correct Answer: A) Debtors. 11. Has limited liability. A) Sole Proprietorship. B) Corporation. C) Partnership. D) None of above. Show Answer Correct Answer: B) Corporation. 12. Salary paid to Ram, in this entry Ram's A/c will be A) Debited. B) Credited. C) Neither debited nor credited. D) None of the above. Show Answer Correct Answer: C) Neither debited nor credited. 13. Journal Entry to record new / agreed value of Non current Asset A) Non-Current Asset (new / agreed value) DebitRevaluation Credit. B) Revaluation DebitNon-Current Asset (new / agreed value) Credit. C) Both Entry 1 and 2. D) None of the above. Show Answer Correct Answer: A) Non-Current Asset (new / agreed value) DebitRevaluation Credit. 14. Andy has started a business and transferred his computer, worth $ 1, 500 into the business.What are the accounting entries to record this? A) Dr Computer equipment Cr Capital. B) Dr Capital Cr Computer equipment. C) Dr Computer equipment Cr Drawings. D) Dr Drawings Cr Computer equipment. Show Answer Correct Answer: A) Dr Computer equipment Cr Capital. 15. Rohan want to withdraw Rs.50, 000 from Bank. But in his account total balance is Rs. 30, 000. To withdraw more account process is called ..... A) Cash withdrawal. B) Liabilities. C) Bank overdraft. D) Loan. Show Answer Correct Answer: C) Bank overdraft. 16. Obligation to pay out money out money as some time in the future is A) Capital. B) Asset. C) Resources. D) Liabilities. Show Answer Correct Answer: D) Liabilities. 17. According to the double-entry system, for every debit entry, there must be a corresponding A) Asset entry. B) Credit entry. C) Debit entry. D) Liability entry. Show Answer Correct Answer: B) Credit entry. 18. Is provisions for bad debts adjustment an income or an expense? A) Both income and expense. B) Neither income nor expense. C) An expense. D) An income. Show Answer Correct Answer: D) An income. 19. ..... is the statement of the position of the business which shows the assets of a business and the sources of those assets A) Balance sheet. B) Liabilities. C) Assets. D) Capital. Show Answer Correct Answer: A) Balance sheet. 20. All the following are branches of accounting except A) Management accounting. B) Balance sheet accounting. C) Cost accounting. D) Financial accounting. Show Answer Correct Answer: B) Balance sheet accounting. 21. It provides the detailed cost data that management needs to control current operations and plan for the future. A) Cost Accounting. B) Financial Analysis. C) Financial Accounting. D) Management Accounting. Show Answer Correct Answer: A) Cost Accounting. 22. The money that's spent by a company to continue its business activities and operations. A) Investments. B) Expenses. Show Answer Correct Answer: B) Expenses. 23. In a not-profit making organization, the cash book is referred to as A) Income and expenditure account. B) Receipts and payments account. C) Two column cash book. D) Petty cash book. Show Answer Correct Answer: B) Receipts and payments account. 24. It is known that PT M2M has several debtors with receivable balances as of November 30 2018, such as PD Ngentak IDR 2, 000, 000, PD Ngijon IDR 5, 000, 000, and PD Gedongan IDR 3, 000, 000. During December 2019, there was a PD Ngijon transaction, on December 2 2019, receiving payment for an invoice from PT Ngijon to PT M2M amounting to IDR 2, 000, 000. The balance on the PT M2M receivable card is A) (D) IDR 3, 000, 000. B) (K) IDR 3, 000, 000. C) (D) IDR 2, 000, 000. D) (D) IDR 5, 000, 000. Show Answer Correct Answer: A) (D) IDR 3, 000, 000. 25. Double entry accounting means debits will equal liabilities A) False. B) True. Show Answer Correct Answer: A) False. 26. A balance sheet lists: A) The types and amounts of the revenues and expenses of a business. B) Only the information about what happened to equity during a specific time period. C) The types and amounts of assets, liabilities, and equity of a business at a specific date. D) The inflows and outflows of cash during a specific time period. E) The assets and liabilities of a business but not the equity. Show Answer Correct Answer: C) The types and amounts of assets, liabilities, and equity of a business at a specific date. 27. How many methods are used to maintaining capital accounts of the Partners A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: B) 2. 28. *The balance sheet displays the company's total assets, and how these assets are ....., through either debt or equity. A) Financed. B) Classified. C) Shared. D) Used. Show Answer Correct Answer: A) Financed. 29. This type of accounting is used to assess the past financial performance of a business A) Financial Accounting. B) Management Accounting. Show Answer Correct Answer: B) Management Accounting. 30. What are the advantages of the fair value measurement method? A) Provide verifiable information. B) Create consistency in recording the value of assets or liabilities. C) The information provided will be more suitable than the original price for users. D) Honestly reflect the values of transactions occurring. Show Answer Correct Answer: C) The information provided will be more suitable than the original price for 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