This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 52 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A journal Book does not comprises of ..... Column? A) Journal Folio. B) Amount. C) Date. D) Particular. Show Answer Correct Answer: A) Journal Folio. 2. Rent prepaid as at 1st January, 2002 was #10, 000 Annual rent payable is #80, 000 and rent accrued as at 31st December, 2002 was #15, 000. How much was paid for rent in 2002? A) #80, 000. B) #75, 000. C) #55, 000. D) #35, 000. Show Answer Correct Answer: B) #75, 000. 3. Accrued expenses are A) Paid and recorded in an asset account before they are used or consumed. B) Paid and recorded in an asset account after they are used or consumed. C) Incurred but not yet paid or recorded. D) Incurred and already paid or recorded. Show Answer Correct Answer: C) Incurred but not yet paid or recorded. 4. On January 1, 2009, a car was purchased for Rp. 200, 000, 000.00. Residual value Rp. 20, 000, 000.00. Economical age 4 years. The method used is straight line. The depreciation journal for December 31 2009 is..... A) Rp.162.500.000, 00. B) Accumulated depreciation (D) Rp. 45, 000, 000 Depreciation expense (K) Rp. 45, 000, 000. C) Car depreciation expense (D) Rp. 20, 000, 000.00; Accumulated car depreciation (K) Rp. 20, 000, 000.00. D) Car depreciation expense (D) Rp. 50, 000, 000.00; Accumulated car depreciation (K) Rp. 50, 000, 000.00. E) Car depreciation expense (D) Rp. 45, 000, 000.00; Accumulated car depreciation (K) Rp. 45, 000, 000.00. Show Answer Correct Answer: E) Car depreciation expense (D) Rp. 45, 000, 000.00; Accumulated car depreciation (K) Rp. 45, 000, 000.00. 5. According to this convention the accounting practices should remain unchanged from one period to another. A) Convention of Consistency. B) Convention of Materiality. C) Convention of Full disclosure. D) Convention of Conservatism. Show Answer Correct Answer: A) Convention of Consistency. 6. What is the constraint of financial statement? A) Cost. B) Expense. C) Revenue. D) Income. Show Answer Correct Answer: A) Cost. 7. What is the main purpose of financial statements? A) To assist management in decision-making. B) To report on a business's financial health to external parties. C) To create internal reports for managers. D) To allocate resources within a business. Show Answer Correct Answer: B) To report on a business's financial health to external parties. 8. The application of the equity accounting method of accounting is based on the investor owning: A) More than 50% of the voting power in an associate. B) More than 20% of the voting power in an associate. C) Part of the share capital of an associate whether or not there are voting rights attached. D) Less than 20% of the voting power in an associate. Show Answer Correct Answer: B) More than 20% of the voting power in an associate. 9. Mr. Narakorn withdrew money from his personal account for personal use. You can save your account by A) Debit capital of Mr. A, credit withdrawal for personal use. B) Debit withdrawal for personal use, credit cash. C) Cash debit, credit withdrawal for personal use. D) Not recording the program. Show Answer Correct Answer: D) Not recording the program. 10. An economic event or condition that initiates the accounting process of recording it in an accounting system. A) Accounting Element. B) Business Transactions. C) Accounting Concept. D) Accounting Equation. Show Answer Correct Answer: B) Business Transactions. 11. The company receives cash from a bank loan.-The owners' equity will A) Increase. B) Decrease. C) No Effect. D) None of above. Show Answer Correct Answer: C) No Effect. 12. When a business is first established and sales are typically slow, they are at the ..... phase of the business cycle. A) Growth. B) Decline. C) Introduction. D) Maturity. Show Answer Correct Answer: C) Introduction. 13. What are the salient features of accounting? A) Follows flexible, not a rigid approach. B) Is practiced in a social system. C) Is judgmental at times. D) All of the above. Show Answer Correct Answer: D) All of the above. 14. Positive accounting theory was developed by..... A) Littleton (1940). B) Watts and Zimmerman (1986). C) Scott (2000). D) Moonitz (1980). Show Answer Correct Answer: B) Watts and Zimmerman (1986). 15. Reserve for bad debts is shown on A) Debit side of Trading Account. B) Credit side of Trading Account. C) Debit side of profit and Loss Account. D) Credit side of Profit and Loss Account. Show Answer Correct Answer: D) Credit side of Profit and Loss Account. 16. A formal examination of a company's financial records for accuracy and compliance with regulations. A) Accounting. B) Budget. C) Audit. D) Income statement. Show Answer Correct Answer: C) Audit. 17. What could happen when there is no (absence of) managerial accountant in a business organisation? A) Company will save money from paying managerial accountant's salary. B) The managers will find its hard to make business decision. C) The good name of the company would turned worse. D) The managers will loose their job. Show Answer Correct Answer: B) The managers will find its hard to make business decision. 18. Which of the following is a correct journal entry for the payment of accounts payable? A) Debit Accounts Payable, Credit Cash. B) Debit Cash, Credit Accounts Payable. C) Debit Accounts Receivable, Credit Cash. D) Debit Cash, Credit Accounts Receivable. Show Answer Correct Answer: B) Debit Cash, Credit Accounts Payable. 19. Step 7 in the Accounting Cycle A) Source documents. B) Closing entries. C) Trial balance. D) Adjusted trial balance. Show Answer Correct Answer: B) Closing entries. 20. Receipts and Payments Account highlights total income and expenditure A) False. B) True. Show Answer Correct Answer: A) False. 21. A member of BOA must be a duly registered Certified Public Accountant with at least ten (10) years of work experience in A) Commerce & Industry. B) Academe. C) Any scope of practice of accountancy. D) Public Accountancy. Show Answer Correct Answer: C) Any scope of practice of accountancy. 22. Return inwards means A) Expected sales. B) Sales return. C) Proportionate sales. D) Purchase return. Show Answer Correct Answer: B) Sales return. 23. Wages incurred by departmental workers of a factory in installing a new machinery is a revenue expenditure. A) True. B) False. Show Answer Correct Answer: B) False. 24. The Accounting Equation A) Revenue-Expenses = Profit/Loss. B) Revenue + Expenses = Profit/Loss. C) Assets = Liabilities + Owner's Equity. D) Assets + Liabilities = Owner's Equity. Show Answer Correct Answer: C) Assets = Liabilities + Owner's Equity. 25. What financial statement helps you plan your expenses Before you have spent any money? A) Statement of Cash Flows. B) Income Statement. C) Balance Sheet. D) Budget. Show Answer Correct Answer: D) Budget. 26. At the time the insurance payment was recorded in the journal as an insurance expense of IDR 4, 500, 000.00, the maturity date was IDR 3, 200, 000.00 on December 31, IDR 3, 200, 000.00. So the adjusting journal is..... A) Insurance expense Rp. 1, 300, 000 Prepaid insurance Rp. 1, 300, 000. B) Prepaid insurance Rp. 3, 200, 000 Insurance expense Rp. 3, 200, 000. C) Insurance expense Rp. 4, 500, 000 Prepaid insurance Rp. 4, 500, 000. D) Prepaid insurance Rp. 1, 300, 000 Insurance expense Rp. 1, 300, 000. E) Prepaid insurance Rp. 4, 500, 000 Insurance expense Rp. 4, 500, 000. Show Answer Correct Answer: D) Prepaid insurance Rp. 1, 300, 000 Insurance expense Rp. 1, 300, 000. 27. Which of these is an example of a detective control procedure? A) Periodic reconciliations. B) Separation of duties. C) Approval authority. D) Standardized documentation. Show Answer Correct Answer: A) Periodic reconciliations. 28. Which of the following statements is/are true?1-The IFRS Interpretations Committee is a forum for the IASB to consult with the outside world. 2-The IFRS Foundation produces IFRSs. The IFRS Foundation is overseen by the IASB. 3-One of the objectives of the IFRS Foundation is to bring about convergence of national accounting standards and IFRSs. A) 1 and 3 only. B) 2 only. C) 2 and 3 only. D) 3 only. Show Answer Correct Answer: D) 3 only. 29. An adjusting entry was made on December 31, 2020, to accrue salaries expense of $ 1, 200. Which of the following entries would be prepared to record the next payment of salaries, on January 5, 2021, in the amount of $ 3, 000? A) Debit Salaries Expense3, 000 Credit Cash 3, 000. B) Debit Salaries Payable1, 200 Credit Cash 1, 200. C) Debit Salaries Payable1, 200 Debit Salaries Expense1, 800 Credit Cash 3, 000. D) Debit Salaries Expense1, 200 Credit Salaries Payable 1, 200. E) Debit Salaries Payable3, 000 Credit Cash 3, 000. Show Answer Correct Answer: C) Debit Salaries Payable1, 200 Debit Salaries Expense1, 800 Credit Cash 3, 000. 30. What is the fundamental principle of double-entry accounting? A) Double-entry accounting only involves recording expenses and not income. B) The fundamental principle of double-entry accounting is to only record one side of a transaction. C) For every debit entry, there must be an equal credit entry. D) For every debit entry, there must be an equal debit entry. Show Answer Correct Answer: C) For every debit entry, there must be an equal credit entry. ← 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