This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 44 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 44 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The type of asset which has no physical existence but has rights as their value are known as? A) Investments. B) Intangible assets. C) Cureent assets. D) Fixed assets. Show Answer Correct Answer: B) Intangible assets. 2. Mr Song bought an existing business assets valued at:Shophouse RM89, 000, Motor Van RM31, 500, Inventory RM13, 700 and Liabilities RM21, 600. He paid RM140, 000 for the business. This means that ..... A) He made a profit of RM27, 400 for the business purchase. B) He paid RM27, 400 for the goodwill. C) He paid RM15, 800 for the goodwill. D) He bore a loss of RM15, 800 for the business purchase. Show Answer Correct Answer: B) He paid RM27, 400 for the goodwill. 3. The accounts of limited liability companies are sometimes filed with the Registrar of Companies A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 4. Which ONE pair of the following items would appear on the same side of the trial balance? A) Drawings and accruals. B) Carriage outwards and prepayments. C) Carriage inwards and rental income. D) Opening inventory and purchase returns. Show Answer Correct Answer: B) Carriage outwards and prepayments. 5. Land is a ..... asset A) Fictitious asset. B) Fixed Asset. C) Intangible Asset. D) Current Asset. Show Answer Correct Answer: B) Fixed Asset. 6. Which statement shows information at a point in time? A) Income Statement. B) Statement of Cash Flows. C) Statement of Profit or Loss. D) Balance sheet. Show Answer Correct Answer: D) Balance sheet. 7. Income from the sale of scrap is usually shown in ..... A) Profit and loss account. B) Trading account. C) Manufacturing account. D) All of the above. Show Answer Correct Answer: A) Profit and loss account. 8. If an expense is made, it has to be debited to A) Final accounts. B) Trial balance. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 9. A daysheet provides complete and up-to-date information about A) Accounts receivable. B) Income taxes. C) Accounts forwarded to a collection agency. D) Accounts payable. Show Answer Correct Answer: A) Accounts receivable. 10. Net income RM 200, 000Depreciation expense RM 30, 000Gain on sale of truck RM 5, 000Proceeds from sale of truck RM 8, 000Decrease in account receivable RM 10, 000 What amount will the corporation report as the Net Cash Provided by Operating Activities on the cash flow statement? A) RM 218, 000. B) RM 253, 000. C) RM 235, 000. D) RM 225, 000. Show Answer Correct Answer: C) RM 235, 000. 11. How many countries are currently using the IFRS? A) 138 and United States are one of them. B) 138 and United States is not one of them. Multinational Businesses are barred from using them. C) 138 and United States is not currently one of them. Multinational business do use IFRS anyway. D) All the countries are using GAAP instead of IFRS. Show Answer Correct Answer: C) 138 and United States is not currently one of them. Multinational business do use IFRS anyway. 12. A hedge of the exposure to changes in the fair value of a recognized asset or liability, or an unrecognized firm commitment, is classified as a A) Fair value hedge. B) Cash flow hedge. C) Hedge fund. D) Receivable hedge. Show Answer Correct Answer: A) Fair value hedge. 13. Which Italian mathematician and Franciscan friar is often referred to as the "Father of Accounting" for his contributions to double-entry bookkeeping in the 15th century? A) Galileo Galilei. B) Luca Pacioli. C) Niccolo Machiavelli. D) Leonardo da Vinci. Show Answer Correct Answer: B) Luca Pacioli. 14. A statement of profit and loss is another name for: A) The statement of cash flows. B) The statement of changes in equity. C) The accounting equation. D) The income statement. E) The balance sheet. Show Answer Correct Answer: D) The income statement. 15. ALL OF THE FOLLOWING MAYBE RECOGNIZED AS A BIOLOGICAL ASSET, EXCEPT: A) COCONUT TREE. B) BEARER ANIMALS. C) MILKING COWS. D) AGRICULTURAL PRODUCE GROWING ON A BEARER PLANT. Show Answer Correct Answer: A) COCONUT TREE. 16. Sales book is meant for recording all A) Credit sales. B) Credit purchases. C) Cash sales. D) Cash transactions. Show Answer Correct Answer: A) Credit sales. 17. A confirmation letter sent by a public accountant to a debtor where the debtor is asked to send a reply directly to the public accountant is called..... A) . List of accounts receivable ages. B) Positive confirmation. C) List of receivable balances. D) Negative confirmation. Show Answer Correct Answer: D) Negative confirmation. 18. Which of the following is not a type of General Insurance? A) Marine Insurance. B) Fire insurance. C) Life insurance. D) Accident insurance. Show Answer Correct Answer: C) Life insurance. 19. The cash over and short account A) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts and is not necessary in a computerized accounting system. B) Is not necessary in a computerized accounting system. C) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts. D) Is used to record a credit balance in the cash account. E) None of these. Show Answer Correct Answer: C) Is an income statement account used for recording the income effects of cash overages and cash shortages from errors in making change and missing petty cash receipts. 20. When goods are returned to the Supplier, a Credit Note is raised and sent to the Supplier A) True. B) False. Show Answer Correct Answer: B) False. 21. The financial statement that reports assets, liabilities, and equity is A) Retained earnings statement. B) Income statement. C) Statement of financial position. D) Statement of cash flow. Show Answer Correct Answer: C) Statement of financial position. 22. Intangible assets are physical items such as buildings, machinery, and computers. A) True. B) False. Show Answer Correct Answer: B) False. 23. If Capital amounts to $ 2 550 and Liabilities amounts to $ 400, what is the amount for Assets? A) $ 2800. B) $ 2150. C) $ 2950. D) $ 3050. Show Answer Correct Answer: C) $ 2950. 24. Financial accounting reports to the ..... after the completion of the accounting year.A. internal managementB. external partiesC. MediaD. rivals A) Media. B) Internal management. C) External parties. D) Rivals. Show Answer Correct Answer: C) External parties. 25. Which of the following should be recorded under non-current liability in the SOFP? A) Accounts Payable. B) Long-term Debt. C) Salaries Payable. D) Prepaid Expenses. Show Answer Correct Answer: B) Long-term Debt. 26. What is meant by current liabilities? A) Fines to be paid by the company. B) Debts that must be paid by the company for more than one year. C) Debts that must be paid by the company in less than a year. D) None of above. Show Answer Correct Answer: C) Debts that must be paid by the company in less than a year. 27. Which of the following is the correct definition for the term transactions? A) A list of items in a business. B) A program used by the business. C) People who operate a business. D) A summary of activities in a business. Show Answer Correct Answer: D) A summary of activities in a business. 28. "Cost of an asset/useful life (years)" is the formula for: A) Sum of Years' Digits Depreciation Method. B) Straight Line Depreciation Method. C) Double Declining Balance Depreciation Method. D) Diminishing Balance Depreciation Method. Show Answer Correct Answer: B) Straight Line Depreciation Method. 29. A compound journal entry A) Has equal debits and credits. B) Generally extends to several pages. C) Does not require narration. D) All of these. Show Answer Correct Answer: A) Has equal debits and credits. 30. The purpose of preparing a departmental profit and loss account for a firm is ..... A) To show the relative financial performance of different sections of the firm. B) To estimate the firm's.future cash requirements. C) To ensure that all likely bad debts are provided for. D) To ensure that discounts allowed by the firm do not exceed discounts received by it. Show Answer Correct Answer: A) To show the relative financial performance of different sections of the firm. ← 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