This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 39 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 39 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Equipment is depreciated at 10% of cost, in Trial Balance there is an Equipment account Rp20.000.000 and Accumulated Depreciation Equipment Rp5.000.000 A) Depreciation Expense (D) Rp2.000.000 Accumulated Dep. Equipment (K) Rp2.000.000. B) Depreciation Expense (D) Rp1.000.000 Accumulated Dep. Equipment (K) Rp1.000.000. C) Depreciation Expense (D) Rp4.000.000 Accumulated Dep. Equipment (K) Rp4.000.000. D) Depreciation Expense (D) Rp1.500.000 Accumulated Depreciation (K) Rp1.500.000. Show Answer Correct Answer: A) Depreciation Expense (D) Rp2.000.000 Accumulated Dep. Equipment (K) Rp2.000.000. 2. $ Work in progress as at January 1 1 600Work in progress as at December 31 1 700Cost of materials used 3 000Indirect expenses 3 200Factory wages 5 000 What is the cost of goods produced? A) $ 11 200. B) $ 8 700. C) $ 8 000. D) $ 11 100. Show Answer Correct Answer: D) $ 11 100. 3. X buys a machine on 1 January 2000 for $ 10 000 and depreciates it by 20 % per annum using thestraight-line method.X sells the machine on 1 January 2003 for $ 3000.What is the profit or loss on disposal? A) $ 1000 profit. B) $ 3000 loss. C) $ 3000 profit. D) $ 1000 loss. Show Answer Correct Answer: D) $ 1000 loss. 4. Obligations (amounts owed) are reported on the statement of financial position and are referred to as ..... A) Equity. B) Debt. C) Assets. D) Liabilities. Show Answer Correct Answer: D) Liabilities. 5. Which of the following is the basis for apportioning rent among departments? A) Direct labour cost. B) Floor area. C) Sales. D) Number of employees. Show Answer Correct Answer: B) Floor area. 6. The purchase of treasury shares A) Decreases shares authorized. B) Decreases shares issued. C) Decreases shares outstanding. D) Has no effect on shares outstanding. Show Answer Correct Answer: C) Decreases shares outstanding. 7. Notional Loss Method is also Known as A) Minimum Loss Method. B) Average Loss Method. C) Maximum Loss Method. D) Expected Loss Method. Show Answer Correct Answer: C) Maximum Loss Method. 8. ..... is a specialised branch of accounting that keeps track of a company's financial transactions. A) Corporate accounting. B) Financial Accounting. C) Cost accounting. D) Management accounting. Show Answer Correct Answer: B) Financial Accounting. 9. CURRENT VALUE INCLUDES ALL THE FOLLOWING, EXCEPT A) CURRENT COST. B) HISTORICAL COST. C) FAIR VALUE. D) FULFILLMENT VALUE. Show Answer Correct Answer: B) HISTORICAL COST. 10. Banking activities include A) Bank accounts. B) Electronic funds transfer. C) Bank deposits. D) Chequing. E) All of the above. Show Answer Correct Answer: E) All of the above. 11. A method of inventory of merchandise that results in low taxes A) Average. B) LIFO. C) Specific Identification. D) FIFO. Show Answer Correct Answer: B) LIFO. 12. Discuss the importance of financial accounting in decision-making for businesses. A) Financial accounting helps businesses make informed decisions by providing crucial financial information. B) Financial accounting only provides irrelevant information for decision-making. C) Financial accounting is only useful for personal finance, not for businesses. D) Financial accounting has no impact on decision-making. Show Answer Correct Answer: A) Financial accounting helps businesses make informed decisions by providing crucial financial information. 13. What does GST stands for A) Grocery service tax. B) Goods and service tax. C) Goods and sustainability tax. D) Good stuff tax. Show Answer Correct Answer: B) Goods and service tax. 14. How do you calculate the breakeven point? A) Fixed cost / contribution per unit. B) Fixed cost + variable cost. C) Contribution / Variable cost per unit. D) None of above. Show Answer Correct Answer: A) Fixed cost / contribution per unit. 15. In comparison to common stockholders preferred stockholders generally: A) Get paid dividends first. B) Have no voting rights. C) Have first right to company assets in case of bankruptcy. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Purchase price of the ship = 10, 00, 000-Years of life of the ship = 16, Duration of voyage = 45 days A) Rs. 4, 500-. B) Rs. 7, 205-. C) Rs. 7, 705-. D) Rs. 6, 250-. Show Answer Correct Answer: C) Rs. 7, 705-. 17. The process of recording financial data up to trial balance is A) Classifying. B) Analyzing. C) Summarising. D) Book keeping. Show Answer Correct Answer: D) Book keeping. 18. The car was purchased in August 2017 for Rp. 200, 000, 000. until June 30 2018, Rp. 10, 000, 000. on September 3 2018 it was exchanged for a new car of the same type at a price of Rp. 240, 000, 000. at the time of exchange cash of IDR was handed over. 55, 000, 000. record the transaction in the journal ..... A) Car(new) Rp. 240, 000, 000 Akm. Car cost Rp. 10, 000, 000 Car exchange loss Rp. 5, 000, 000 Car (old) Rp. 200, 000, 000 Cash Rp. 55, 000, 000. B) Car Rp. 240, 000, 000 Cash Rp. 240, 000, 000. C) Car (old) Rp. 200, 000, 000Cash Rp. 55, 000, 000 Car (new) Rp. 240, 000, 000 Akm. Car cost Rp. 10, 000, 000 Car Exchange Losses Rp. 5, 000, 000. D) Car (old) Rp. 200, 000, 000 Cash Rp. 55, 000, 000 Car (new) Rp. 240, 000, 000 Akm. Car cost Rp. 10, 000, 000 Profit from car exchange Rp. 5, 000, 000. Show Answer Correct Answer: A) Car(new) Rp. 240, 000, 000 Akm. Car cost Rp. 10, 000, 000 Car exchange loss Rp. 5, 000, 000 Car (old) Rp. 200, 000, 000 Cash Rp. 55, 000, 000. 19. In accounting, the phrase to "to recognize" means (choose the incorrect statement) A) To include in the totals of the balance sheet or income statement. B) To record. C) To say "hi.". D) To journalize. Show Answer Correct Answer: C) To say "hi.". 20. Calculate the Units available for Sale and the Goods available for sale ($ ) using the following information:Purchases:Jan:8 units @ $ 140; Feb:10 @ $ 135; March:13 @ $ 130; April:15 @$ 120; May:8 @ $ 115. A) 50 units/$ 5, 400. B) 64 units/$ 7, 890. C) 76 units/$ 8, 740. D) 54 units/$ 6, 880. Show Answer Correct Answer: D) 54 units/$ 6, 880. 21. Unmarked applications refers to A) Applications carrying the stamp of company which offered the shares. B) Applications bearing the stamp of the underwriters. C) Application bearing Government stamp. D) Applications carrying the signatures of public who applied for shares. Show Answer Correct Answer: D) Applications carrying the signatures of public who applied for shares. 22. ..... is the book of original or prime entry which is used for recording small disbursement or expenses (a) (b) (c) (d) A) Petty cash book. B) Bank statement. C) Trial balance. D) Cash book. Show Answer Correct Answer: A) Petty cash book. 23. Incomes are debited A) True. B) False. C) Partially True. D) None of the above. Show Answer Correct Answer: B) False. 24. If average total assets increase, but net income, net sales and average stockholders' equity remain the same, what is the impact on the return on assets ratio? A) Cannot be determined without additional information. B) Decreases. C) Increases. D) Remains the same. Show Answer Correct Answer: B) Decreases. 25. Net Revenue means all proceeds from the sale of goods and services excluding the ..... A) Returns. B) Profit. C) Cost of goods sold. D) SG & A expenses. Show Answer Correct Answer: A) Returns. 26. The hire purchase system is regulated by the Hire purchase Act ..... A) 1973. B) 1971. C) 1970. D) 1972. Show Answer Correct Answer: D) 1972. 27. All the following are non manufacturing cost except A) Selling expenses. B) Administration expenses. C) Direct expenses. D) Distribution expenses. Show Answer Correct Answer: C) Direct expenses. 28. Zang Company had no office supplies on hand at the beginning of the year. During the year, the company purchased $ 250 worth of office supplies. At the end of the year, $ 50 worth of office supplies were on hand. How much should Zang Company report as office supplies expense for the year? A) $ 200. B) $ 325. C) $ 125. D) $ 175. E) $ 75. Show Answer Correct Answer: A) $ 200. 29. The unrealised profit in opening stock is transferred to which account which side? A) Debit Side of General Profit and Loss Account. B) Credit Side of General Profit and Loss Account. C) Assets Side of Balance Sheet. D) Liability Side of Balance Sheet. Show Answer Correct Answer: B) Credit Side of General Profit and Loss Account. 30. Which of the following documents sets out the internal regulations of a partnership? A) Regulation. B) Law. C) Code. D) Deed. Show Answer Correct Answer: D) Deed. ← 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