This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 50 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Assets with no physical form, yet they offer-value to a business for more than one year. A) Fixed Assets. B) Intangible Assets. C) Amortization. D) Depreciation. Show Answer Correct Answer: B) Intangible Assets. 2. ..... is the goods which are partly completed at the end of the financial year. A) Work in progress. B) Prime cost. C) Manufacturing account. D) Cost of production. Show Answer Correct Answer: A) Work in progress. 3. ..... Are paid last, in the order of payment by the liquidator A) Preference shareholders. B) Equity shareholders. C) Unsecured creditors. D) None of above. Show Answer Correct Answer: B) Equity shareholders. 4. A method of matching income and costs in which income is reported when the money has been received and costs are reported when the money has been paid A) Accrued expense. B) Unearned revenue. C) Accrual basic of accounting. D) Accrued revenue. E) Cash basic of accounting. Show Answer Correct Answer: E) Cash basic of accounting. 5. The main purpose of adjusting entries is to A) Recognize expenses paid during the period. B) Adjust assets to their market value. C) Recognize revenues received during the period. D) Record internal transactions and events. E) Record external transactions and events. Show Answer Correct Answer: D) Record internal transactions and events. 6. Stakeholders who need accounting information to invest capital A) Creditors. B) Investor. C) Manager. D) Public. Show Answer Correct Answer: B) Investor. 7. What a company owes to creditors: A) Assets. B) Liabilities. C) Equity. D) None of above. Show Answer Correct Answer: B) Liabilities. 8. Assets that have no physical properties: A) Intangible assets. B) Goodwill. C) Trademarks. D) All of the above. Show Answer Correct Answer: D) All of the above. 9. Revenues have the effect of causing owner's or stockholders' equity to ..... A) Decrease. B) Increase. C) Remain the same. D) None of the above. Show Answer Correct Answer: B) Increase. 10. After Eating Dinner, Let's Read Comics helps you remember which accounts are decreased on the left and which accounts are increased on the right. A) True. B) False. Show Answer Correct Answer: B) False. 11. The primary purpose of a quasi-reorganization is to give the entity the opportunity to A) Revalue understated assets at fair value. B) Distribute the shares of a newly-created subsidiary to the shareholders in exchange for part of their shares. C) Obtain relief from creditors. D) Eliminate a deficit. Show Answer Correct Answer: D) Eliminate a deficit. 12. Accounting is language of A) Business. B) Individual. C) None of these. D) None of above. Show Answer Correct Answer: A) Business. 13. Which of the following items may be shown by an account sales: A) Type and quantity of goods sold. B) Per unit sales price. C) Consignee's commission and expenses. D) All of the above items may be shown by an account sales. Show Answer Correct Answer: D) All of the above items may be shown by an account sales. 14. As per this concept, all accounting must be based on objective evidence. In other words, the transactions recorded should be supported by verifiable documents. A) Matching Concept. B) Dual Aspect Concept. C) Verifibility and Objectivity Concept. D) Realisation Concept. Show Answer Correct Answer: C) Verifibility and Objectivity Concept. 15. How are liabilities defined in financial accounting? A) Future sacrifices of economic benefits that a business owes to other entities. B) Durable produced goods used as productive inputs. C) Resources owned or controlled by a business. D) The total amount of income generated by the sale of goods and services. Show Answer Correct Answer: A) Future sacrifices of economic benefits that a business owes to other entities. 16. The owner invests personal cash in the business.-Owner's Equity will A) Increase. B) Decrease. C) No Effect. D) None of above. Show Answer Correct Answer: A) Increase. 17. Debits to the ..... Credits to the ..... A) Right, Left. B) Right, right. C) Left, Left. D) Left, Right. Show Answer Correct Answer: D) Left, Right. 18. Corporation started by Congress that oversees the audits of public companies. A) Securities and Exchange Commision (SEC). B) Public Company Accounting Oversight Board (PCAOB). C) Financial Accounting Standards Board (FASB). D) Internal Revenue Service (IRS). Show Answer Correct Answer: B) Public Company Accounting Oversight Board (PCAOB). 19. Marshalling of balance sheet means A) The order of assets and liabilities. B) Totalling and arranging of assets and liabilities. C) Finding balance in balance sheet. D) None of above. Show Answer Correct Answer: A) The order of assets and liabilities. 20. A statement that lists the assets, liabilities, and owner's equity. It displays a company's collateral and liquidity at a point in time. A) Trial Balance. B) Balance Sheet. C) General Journal. D) Owner's equity statement. Show Answer Correct Answer: B) Balance Sheet. 21. The accounting cycle is repeated every time financial statements are prepared. A) False. B) True. Show Answer Correct Answer: B) True. 22. Trial Balance is a ..... A) A list of all the ledger accounts and their balances extracted from the General Ledger. B) Prepared on a given date, usually at the end of the financial period. C) Prepared after identification and recording of source documents, but before preparation of Income Statement and Balance Sheet. D) All of the above. Show Answer Correct Answer: D) All of the above. 23. Which of the following is not a book of original entry? A) Cash account. B) Purchases account. C) Sales journal. D) Return inwards journal. Show Answer Correct Answer: B) Purchases account. 24. Which of the following is not recorded in the Cash at Bank account but already recorded in the Bank Statement? A) Indirect payment. B) Direct payment. C) Unpresented cheque. D) Uncredited cheque. Show Answer Correct Answer: B) Direct payment. 25. The final report for the year is called A) Years report. B) Year report. C) Final report. D) Annual report. Show Answer Correct Answer: D) Annual report. 26. According to IAS 01, financial statements do not include: A) Statements of cash flows. B) Additional reporting. C) Report on financial status. D) Income statement. Show Answer Correct Answer: B) Additional reporting. 27. What type of error is 'an entry is made in the wrong class of account' A) Compensating errors. B) Errors of reversing entries. C) Errors of principle. D) Errors of commission. Show Answer Correct Answer: C) Errors of principle. 28. What is the one asset that can NEVER be depreciated? A) Financing Costs. B) Land. C) Deferred Financing Cost. D) Land Improvements. Show Answer Correct Answer: B) Land. 29. Deposits that can only be withdrawn using checks and giro bills A) Savings Deposits. B) Savings Giro. C) Deposit Savings. D) None of above. Show Answer Correct Answer: B) Savings Giro. 30. Sold equipment by cash $ 700. What is the double entry to record this transaction? A) Debit Cash and Credit Sales. B) Debit Cash and Credit Equipment. C) Debit Equipment and Credit Cash. D) Debit Sales and Credit Equipment. Show Answer Correct Answer: B) Debit Cash and Credit Equipment. ← 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