This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 51 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 51 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ALL OF THE FOLLOWING ARE FINANCIAL LIABILITIES, EXCEPT: A) BONDS PAYABLE. B) INCOME TAX PAYABLE. C) NOTES PAYABLE. D) ACCOUNTS PAYABLE. Show Answer Correct Answer: B) INCOME TAX PAYABLE. 2. A theory is defined as a set of interrelated constructs, definitions, and propositions that present a systematic view of phenomena by specifying relations among variables with the purposed of explaining and predicting the phenomena A) True. B) False. Show Answer Correct Answer: A) True. 3. When the amounts of a transaction must be recorded in a minimum of two accounts- A) Credit. B) Double-entry. C) Accounting equation. D) Debit. Show Answer Correct Answer: B) Double-entry. 4. Joint Venture means two or more parties co-operate on a particular project without forming a permanent business entity. A) False. B) True. Show Answer Correct Answer: B) True. 5. Dividend paid is A) Charge to profit. B) Allocation of profit. C) Both a and b. D) None of the above. Show Answer Correct Answer: B) Allocation of profit. 6. A list of all the account names for a business and their current balances. A) Journal. B) General ledger. C) Account title. D) Trial balance. Show Answer Correct Answer: D) Trial balance. 7. If you receive 25% off an item costing $ 22.00, how much money do you save? A) $ 6.00. B) $ 7.35. C) $ 4.25. D) $ 5.50. Show Answer Correct Answer: D) $ 5.50. 8. Which of the following is WRONG about cash? A) CAsh is the most important asset in running a business. B) Legal tender in the form of banknotes and coins that is not used for the settlement of debt. C) Cash considered the most liquid in a business. D) Defined as resources that consists of currrencies. Show Answer Correct Answer: B) Legal tender in the form of banknotes and coins that is not used for the settlement of debt. 9. Expenses outstanding at end of financial period-added to expense in Income Statement and treated as a current liability in the Statement of Financial position A) Other Payables. B) Other Receivables. Show Answer Correct Answer: A) Other Payables. 10. On April 1 2006 a company purchased a machine for Rp. 60, 000, 000. The machine's useful life is estimated at 4 years, with a residual value of Rp. 20, 000, 000. The method used is the straight line method. The amount of depreciation in 2006 was..... A) Rp. 7.500.000. B) Rp. 4.500.000. C) Rp. 6.000.000. D) Rp. 10.000.000. E) Rp. 7.000.000. Show Answer Correct Answer: A) Rp. 7.500.000. 11. What was the name of book written by Luca Pacioli? A) The history of modern accounting system. B) Accounting in the ancient Venice. C) The modern accounting system. D) Summa Of Arithmetic, Geometrical, Proportion-te-proportionalita. Show Answer Correct Answer: D) Summa Of Arithmetic, Geometrical, Proportion-te-proportionalita. 12. State whether sales returns is found on the debit or credit side of the trial balance. A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 13. When the company receives applications for less number of shares than offered to the public for subscription, it is said to be ..... A) Over subscription. B) Under subscription. C) Fixed subscription. D) Subscription. Show Answer Correct Answer: B) Under subscription. 14. Under the diminishing balance method depreciation it ..... A) Increases every year. B) Decreases every year. C) Remain constant every year. D) On scrap value. Show Answer Correct Answer: B) Decreases every year. 15. You are purchasing a T.V for $ 990 T.V with 9% sales tax. What is the final price of the T.V.? A) $ 1, 709.1. B) $ 1881.00. C) $ 1079.00. D) $ 1, 079.10. Show Answer Correct Answer: D) $ 1, 079.10. 16. The relationship between two financial variables can be expressed in: A) Pure ratio. B) Percentage. C) Rate or time. D) Either of the above. Show Answer Correct Answer: D) Either of the above. 17. Business transactions are recorded A) In chronological order. B) Weekly. C) At the end of the month. D) All of these. Show Answer Correct Answer: A) In chronological order. 18. Debts owed by the business A) Liabilities. B) Assets. C) Capital. D) Cash. Show Answer Correct Answer: A) Liabilities. 19. What are liabilities? A) Costs of operating a business. B) What a company owes. C) The act of buy items. D) The money paid to employees. Show Answer Correct Answer: B) What a company owes. 20. The amount of money a business paid for the goods that it then sold to customers. A) Cost of merchandise sold. B) Inventory. C) Cost of revenue. D) Cost of expenses. Show Answer Correct Answer: A) Cost of merchandise sold. 21. Proforma invoice is a document which is prepared by: A) The consignor and is sent to the consignee. B) The consignee and is sent to the consignor. C) Both consignor and consignee and is sent to each other. D) The carrier and is sent to both consignor and consignee. Show Answer Correct Answer: A) The consignor and is sent to the consignee. 22. Explain the purpose of financial accounting. A) To track employee attendance and work hours. B) To provide information about the financial position, performance, and changes in financial position of an organization. C) To manage the marketing and advertising budget of an organization. D) To provide information about the physical assets of an organization. Show Answer Correct Answer: B) To provide information about the financial position, performance, and changes in financial position of an organization. 23. The difference between the total debits and the total credits posted to an account yields a figure called the ending balance of that account. A) False. B) True. Show Answer Correct Answer: B) True. 24. Governed by the Civil Code of the Philippines. Partners agree, among other things, on how the business will be managed, the amount of capital contributions from each partner, how profits/losses will be divided among them, and the form and mode of settlement in case of withdrawal by, or death of, any of the partners. A) Corporation. B) Sole. C) Partnership. D) Sole Proprietorship. Show Answer Correct Answer: C) Partnership. 25. Of the following account types, which would be increased by a debit? A) Liabilities and Expenses. B) Assets and Capital. C) Assets and Expense. D) Capital and revenues. Show Answer Correct Answer: C) Assets and Expense. 26. Important Accounting Conventions are: A) Conventions of Consistency. B) Conventions of Disclosure. C) Conventions of Conservatism. D) Conventions of Materiality. E) All the above. Show Answer Correct Answer: E) All the above. 27. Which of the following new lllustrates a current asset A) Land&buildings. B) A loan. C) Dividends. D) Cash. Show Answer Correct Answer: D) Cash. 28. Double entry system started in the year A) 1949. B) 1494. C) 1944. D) 1499. Show Answer Correct Answer: B) 1494. 29. In the straight-line method the amount of depreciation decreases year after year. A) False. B) True. Show Answer Correct Answer: A) False. 30. When a business purchase a motor vehicle on credit: A) Assets increase, liability increase. B) Asset decrease, liability increase. C) Assets increase, liability decrease. D) Expense increase, liability increase. Show Answer Correct Answer: A) Assets increase, liability increase. ← 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