This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 41 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statements best explains the principle of faithful representation in relation to the preparation of the annual financial statements? A) Transactions are presented in such a way as to maximise profit for the year. B) Transactions are presented in such a way to maximise asset values in the statement of financial position. C) Transactions are presented any way that is considered appropriate. D) Transactions are presented to reflect their commercial substance of a transaction rather than their legal form. Show Answer Correct Answer: D) Transactions are presented to reflect their commercial substance of a transaction rather than their legal form. 2. Which book of original entry records all the purchase invoices for goods and services supplied on credit to the firm? A) Purchases Daybook. B) Purchases Returns Daybook. C) Sales Daybook. D) Sales Returns Daybook. Show Answer Correct Answer: A) Purchases Daybook. 3. What are the basic principles of financial accounting? A) Principles of irregularity, inconsistency, insincerity, impermanence of methods, compensation, recklessness, discontinuity, unpredictability, and bad faith. B) Principles of accuracy, flexibility, honesty, changeability, compensation, risk-taking, discontinuity, unpredictability, and bad faith. C) Principles of regularity, consistency, sincerity, permanence of methods, non-compensation, prudence, continuity, periodicity, and good faith. D) Principles of regularity, inconsistency, insincerity, impermanence of methods, non-compensation, recklessness, discontinuity, unpredictability, and bad faith. Show Answer Correct Answer: C) Principles of regularity, consistency, sincerity, permanence of methods, non-compensation, prudence, continuity, periodicity, and good faith. 4. Property and equipment are examples of current assets A) False. B) True. Show Answer Correct Answer: A) False. 5. Book-Keeping is the first stage of accounting A) True. B) False. C) Partial True. D) None of the above. Show Answer Correct Answer: A) True. 6. Double entries of buying goods with cash from Abu A) Dr. AbuCr. Purchases. B) Dr. CashCr. Purchases. C) Dr. PurchasesCr. Cash. D) Dr. PurchasesCr. Abu. Show Answer Correct Answer: C) Dr. PurchasesCr. Cash. 7. There are three parts of accounting standards, EXCEPT A) A discussion or ways of solving the problem. B) Making a conclusion without any discussion. C) Description of the problem to be tacked. D) A line with decision or theory, the prescribed solution. Show Answer Correct Answer: B) Making a conclusion without any discussion. 8. The following defines Accounting except: A) A service activity. B) An information that is collected is primarily numerical. C) An information system. D) An art of recording, classifying and summarizing. Show Answer Correct Answer: B) An information that is collected is primarily numerical. 9. The corporate financial reporting practices of Malaysia are primarily governed by the Companies Act 1965 (now, Companies Act 2016), the Securities Commission Act 1993, the Kuala Lumpur Stock Exchange (KLSE) Listing Requirements and the Companies Commission of Malaysia. A) False. B) True. Show Answer Correct Answer: B) True. 10. You want to know how much cash came out from the business to the suppliers. What is the financial statement that you need to check? A) Balance Sheet. B) Income Statement. C) Statement of Owner's Equity. D) Cash Flow Statement. Show Answer Correct Answer: D) Cash Flow Statement. 11. This is applied when there is uncertainty of the accounting choice to be used. A) Conservatism. B) Cost benefit. C) Industry practice. D) Materiality. Show Answer Correct Answer: A) Conservatism. 12. All the factors that influence financial reporting practices in Malaysia except A) Culture. B) Tax laws. C) Educational system. D) Legal system. E) Foreign currency. Show Answer Correct Answer: E) Foreign currency. 13. Are paid on many sources of income you might earn, like the taxes taken directly from your paycheck. A) Personal Taxes. B) Sales Tax. C) Safe Taxes. D) Income Taxes. Show Answer Correct Answer: D) Income Taxes. 14. A book or set of electronic files that contains the accounts used for a business. A) Worksheet. B) Trial balance. C) General ledger. D) Journal. Show Answer Correct Answer: C) General ledger. 15. The original cost of a plant asset minus accumulated depreciation. A) Half-year convention. B) Book value of a plant asset. C) Assessed value. D) Current asset. Show Answer Correct Answer: B) Book value of a plant asset. 16. Hybrid Basis of Accounting is the combination of both Cash as well as Accrual basis. A) False. B) True. Show Answer Correct Answer: B) True. 17. What is the amount of the monthly IRPP for an annual taxable net amount to:31297.97024 A) 692.946. B) 592.946. C) 492.946. D) 792.946. Show Answer Correct Answer: B) 592.946. 18. Manufacturing companies prepares A) Manufacturing account. B) Trading account. C) Purchase account. D) None of above. Show Answer Correct Answer: A) Manufacturing account. 19. The expenses which are due but have not been paid are called A) Accrued expenses. B) Unincurred expenses. C) Prepaid expenses. D) Advance expenses. Show Answer Correct Answer: A) Accrued expenses. 20. Drawings account is related to ..... A) Nominal a/c. B) Personal a/c. C) Real a/c. D) None. Show Answer Correct Answer: B) Personal a/c. 21. The exclusive right to publish, perform, or reproduce music, art, film, books, or software. A) Copyrights. B) Patents. C) Trademarks. D) Goodwill. Show Answer Correct Answer: A) Copyrights. 22. Carriage inwards are A) Credited to the Trading Account. B) Debited to the Trading account. C) Credited to the Profit and Loss account. D) Debited to the Profit and Loss Account. Show Answer Correct Answer: B) Debited to the Trading account. 23. When the goods are returned by branch goods sent to branch account will be credited in the books of head office. A) True. B) False. Show Answer Correct Answer: B) False. 24. Financial statements are prepared in the following order A) Income statement, statement of changes in equity, balance sheet. B) Income statement, balance sheet, statement of changes in equity. C) Statement of changes in equity, balance sheet, income statement. D) Balance sheet, income statement, statement of changes in equity. E) Balance sheet, statement of changes in equity, income statement. Show Answer Correct Answer: A) Income statement, statement of changes in equity, balance sheet. 25. The loss on sale of furniture is debited to ..... account A) Profit and loss. B) Furniture. C) Depriciation. D) Trading. Show Answer Correct Answer: A) Profit and loss. 26. A dividend is the distribution of corporate profits to eligible shareholders A) True. B) False. Show Answer Correct Answer: A) True. 27. Item 20 refers to the following:Factory workers' wages-$ 2 250Direct materials-$ 3 200Factory lighting-$ 550Factory manager's salary-$ 2 400Indirect materials-$ 625 What is the total value of indirect expenses? A) $ 2 950. B) $ 3 575. C) $ 625. D) $ 3 025. Show Answer Correct Answer: B) $ 3 575. 28. On December 16, 20x1, Entity E hired a new staff with a monthly salary of $ 4, 600. Monthly salary is paid on the 15th of each month. Prepare journal entries on the following dates:December 31, 20x1 A) Salary Payable (D2300 Salary Expenses) 2300. B) Salary Expense (D) 4600Salary Payable (K) 4600. C) Salary Expense (D) 2300Salary Payable (K) 2300. D) Salary Payble (D) 4600Salary Expense (K) 4600. Show Answer Correct Answer: C) Salary Expense (D) 2300Salary Payable (K) 2300. 29. What does unlimited liability mean? A) You can make an unlimited amount of money. B) You are not responsible if the business fails. C) You are responsible if the business fails. D) It is hard to start a business. Show Answer Correct Answer: C) You are responsible if the business fails. 30. In the case of the death of the partner, accounting treatment will be similar to that of a retiring partner. A) True. B) False. Show Answer Correct Answer: A) True. ← 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