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Financial Accounting Quiz 4 (30 MCQs)

Quiz Instructions

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1. X and Y are in partnership with combined capital and current account balances of $ 125 000.Z is admitted as a partner, introducing capital of $ 40 000. At that time, the assets of the partnership are revalued upwards by $ 50 000 and goodwill was valued at $ 18 000. Goodwill was not to remain in the books of account.What was the total capital employed of the partnership immediately after the admission of Z?
2. Which account is not a liability account?
3. Accounting Principles include
4. All the following are reasons why trial balance may not balance except
5. There is no difference between Receipts and Payment Account and Income and Expenditure Account.
6. To increase the balance in the following accounts, would you debit the account or would you credit the account?Supplies Expense
7. An amount entered on the right side of a T account.
8. In the Absence of Profit and Loss Sharing Ration in the agreement the Profit or Loss is Divided by
9. Rent Outstanding have ..... balance
10. Generally when revenues are involved in a transaction, a revenue account will be .....
11. Pay attention to the following data:Initial inventory 2, 000 kg @ Rp. 10, 000 Purchase I 4, 000 kg @ Rp. 12, 000 Purchase II 3, 000 kg @ Rp. 15, 000 PD Merpati Jaya made sales of 5, 000 kg. If the ending inventory value calculated using the LIFO method is.....
12. What's the accounting cycle after trial balance? (What accounting cycle should we create after the trial balance?)
13. A system of record-keeping in which each business transaction affects at least two accounts.
14. Martha Innocenzi Ito began the Innocenzi Company by investing $ 75, 000 of cash in the business. The company recorded revenues of $ 555, 000, expenses of $ 410, 000, and had owner drawings of $ 30, 000. What was Innocenzi's net income for the year?
15. Accounting concepts and conventions are like the Basic rules and regulations of Accounting to be followed in a business
16. Double entry System was introduced in
17. Income Summary is a temporary account only used for the closing process that has a credit for total expenses and debit for total revenues.
18. Which is a non-current asset?
19. Explain the accounting equation.
20. Tobruk Company has an agreement to pay its sales manager a bonus of 5% of the income after bonus and after tax. The income for the current year before bonus and tax is P5, 250, 000. The income tax rate is 30% of income after bonus. What is the bonus of the sales manager for the current year?
21. .6 Interest earned is a
22. The lessor should report the underlying asset under an operating lease and income therefrom as which of the following?
23. On June 1, 2019, Pull Company acquired 100% of Sorrell Inc. for $ 100, 000. On this date, Sorrell had the fair values of assets and liabilities $ 120, 000 and $ 20, 000, respectively, while retained earnings of $ 50, 000. What is the record by Pull when acquiring Sorrell?
24. Which of the following is not a primary reason why corporations invest in debt and equity securities?
25. Identify the type of expenditure. Painting extension to warehouse when it is first built.
26. Owner's equity is best depicted by the following:
27. Which of the following is not a liability?
28. What is the journal entry for the following:Christian Co. sold $ 15, 000 in shoes on credit to Posh Co. with the agreement to be paid the following month.
29. Are paid by the consumer when buying most goods and services.
30. Premium received on issue of shares is a revenue profit.
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