This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 35 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How is Prime Cost calculated on a manufacturing account? A) Prime Cost = Direct Materials x Direct Wages. B) Prime Cost = Direct Materials + Direct Wages + Direct Expenses. C) Prime Cost = Direct Materials / Direct Expenses. D) Prime Cost = Direct Materials-Direct Wages-Direct Expenses. Show Answer Correct Answer: B) Prime Cost = Direct Materials + Direct Wages + Direct Expenses. 2. Which of the following is a current asset? A) Cash at the bank. B) Cash in hand. C) Money at the credit union. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Reserve for Discount on Creditors has a credit balance. A) False. B) True. Show Answer Correct Answer: A) False. 4. A balance sheet reports financial information for a specific date. A) False. B) True. Show Answer Correct Answer: B) True. 5. Which side of a ledger account is known as the CREDIT side? A) Right-hand side. B) Left-hand side. C) Top side. D) Bottom side. Show Answer Correct Answer: A) Right-hand side. 6. Marked applications refers to A) Applications carrying the signatures of public who applied for shares. B) Application bearing Government stamp. C) Applications carrying the stamp of company which offered the shares. D) Applications bearing the stamp of the underwriters. Show Answer Correct Answer: D) Applications bearing the stamp of the underwriters. 7. Receipt and Payment Account is ..... A) Real Account. B) Personal Account. C) Nominal Account. D) None of above. Show Answer Correct Answer: A) Real Account. 8. ..... is the blending together two or more existing companies into one A) Amalgamation. B) Purchase of business. C) Combination. D) Blending. Show Answer Correct Answer: A) Amalgamation. 9. Which one of the following agencies markets steel for the public sector plants? A) HAIL. B) Tata Steel. C) SAIL. D) MNCC. Show Answer Correct Answer: C) SAIL. 10. How many account for each partner According to Fixed Capital Account Method A) 4. B) 2. C) 3. D) 1. Show Answer Correct Answer: B) 2. 11. Which one of the following public sector plants is located in Chhattisgarh? A) Bokaro Steel plant. B) Rourkela steel plant. C) Durgapur steel plant. D) Bhilai Steel Plant. Show Answer Correct Answer: D) Bhilai Steel Plant. 12. Salary is an example of A) Direct expense. B) Indirect expense. C) Both direct and indirect expenses. D) Capital expense. Show Answer Correct Answer: A) Direct expense. 13. Luca Pacioli was a ..... A) Philosopher. B) Doctor. C) Engineer. D) Mathematician. Show Answer Correct Answer: D) Mathematician. 14. When a company acquired the business of another company, the difference between Purchase Consideration and the net asset acquired is debited to ..... A) Property, Plant and Equipments. B) Capital Reserve. C) Cash Account. D) Goodwill. Show Answer Correct Answer: D) Goodwill. 15. On January 8, Gallery Corp. records $ 5, 000 of accrued salaries. On January 15, $ 10, 000 of salaries are paid. The entry on January 15 includes a debit to the Salaries Payable account. A) False. B) True. Show Answer Correct Answer: B) True. 16. On January 1 2019, PD Jalali sold merchandise to Toko Kenari for IDR 6, 000 with payment terms n/30. Based on this data, the recording carried out by PD Jalali is..... A) Cash Rp. 6, 600-Sales Deductions-Rp. 6, 000 Accounts receivable-Rp. 600. B) Sales Return Rp. 6, 600-Accounts Receivable-Rp. 6, 000. C) Trade receivables Rp. 6, 600-Sales-Rp. 6, 000 Input VAT-Rp. 600. D) Accounts receivable Rp. 6, 600-Sales-Rp. 6, 000. Show Answer Correct Answer: C) Trade receivables Rp. 6, 600-Sales-Rp. 6, 000 Input VAT-Rp. 600. 17. Which of the following is not true about accounting information? A) It reflects the mood of the business. B) Only events with monetary values are recorded. C) Different policies make comparison between companies easy. D) None of above. Show Answer Correct Answer: A) It reflects the mood of the business. 18. The hire purchaser can record the asset at its A) Hire purchase price. B) Cash down price. C) None of these. D) None of above. Show Answer Correct Answer: B) Cash down price. 19. Discuss the limitations of financial statements. A) Historical nature, reliance on estimates, lack of non-financial information, potential for manipulation. B) Real-time nature, reliance on actuals, lack of financial information, potential for transparency. C) Future nature, reliance on facts, abundance of non-financial information, potential for accuracy. D) Predictive nature, reliance on guesses, abundance of financial information, potential for honesty. Show Answer Correct Answer: A) Historical nature, reliance on estimates, lack of non-financial information, potential for manipulation. 20. The following are the causes of the dissolution of the federation based on the agreement of the court decision, EXCEPT ..... A) Internal disputes. B) A member's abilities. C) It's no longer possible to make a profit. D) There is no compatibility. Show Answer Correct Answer: B) A member's abilities. 21. On 1 January 20X1, Everton received $ 6m from the local government on the condition that they employ at least 200 staff each year for the next 4 years. On this date, it was virtually certain that Everton would meet these requirements. How much income and deferred income that Everton should present in its financial statements for the year ended 31 December 20X2 A) Income:3m; deferred income:3m. B) Other. C) Deferred income:nil; Income:nil. D) Income:1.5m; deferred income:3m. Show Answer Correct Answer: D) Income:1.5m; deferred income:3m. 22. What is accounts payable? A) Money that you owe someone else. B) Money that a business owes to another business. C) Money that you invested in a company. D) Money that you loaned to the bank. Show Answer Correct Answer: B) Money that a business owes to another business. 23. The Hire purchase Act came into force on 1st September, 1973 A) True. B) False. Show Answer Correct Answer: A) True. 24. Building repair costs of IDR 200, 000, 000 were incurred. If the repair of the building extends its economic life, then the journal that must be made is..... A) Building depreciation expense Rp. 200, 000, 000, -Accumulated building depreciation Rp. 200, 000, 000, -. B) Building depreciation expense Rp. 200, 000, 000, -Cash Rp. 200, 000, 000,. C) Accumulated building depreciation Rp. 200, 000, 000, -Cash Rp. 200, 000, 000, -. D) Building Rp. 200, 000, 000, -Cash Rp. 200, 000, 000, -. Show Answer Correct Answer: C) Accumulated building depreciation Rp. 200, 000, 000, -Cash Rp. 200, 000, 000, -. 25. If beginning capital was RM25, 000, ending capital is RM40, 000, and the owner's withdrawals were RM25, 000, the amount of net income or net loss was: A) Net income RM40, 000. B) Net income RM15, 000. C) Net loss RM5, 000. D) Net loss RM40, 000. Show Answer Correct Answer: A) Net income RM40, 000. 26. Cost of materials consumed is calculated as opening inventory of raw materials + purchases-closing inventory of raw materials A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 27. Shareholders are legally distinct from the business. They loss is not limited to what they invest. A) True. B) False. Show Answer Correct Answer: B) False. 28. Which of the following should be charged to the manufacturing account? A) Managing Director's salary. B) Carriage on raw materials. C) Carriage on sales. D) Office rent. Show Answer Correct Answer: B) Carriage on raw materials. 29. The basic rule of book-keeping 'debit the receiver and credit the giver'? A) Personal a/c. B) Real a/c. C) Nominal a/c. D) None of these. Show Answer Correct Answer: A) Personal a/c. 30. An asset account shows a A) Credit balance. B) Debit balance. C) Credit or debit balance. D) None of above. Show Answer Correct Answer: B) Debit balance. ← 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