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Financial Accounting Quiz 53 (30 MCQs)

Quiz Instructions

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1. ..... is a document drawn up by the partners, which contains the rules and regulations guiding the business
2. Assets =..... + Capital
3. Pet owns 90% of Set, and the acquisition was made at book value (no amortizations). During the current year, Set reported $ 7, 000 income. Pet sold goods to Set during the year for $ 10, 000 including a profit of $ 5, 000. Set still holds 40% of these goods at the end of the year. What is the Pet's journal entry to record income from Set?
4. When a company receives applications for more number of shares than what is issued, the situation is called as .....
5. Calculate the total amount on the credit side of the trial balance
6. A system to identify, measure, and communicate all financial activities .....
7. Explain the difference between the income statement and the balance sheet.
8. "A future benefit exists for the company as it is used in operations."
9. ..... occurs when a creditor is authorized to ask payment from the customer's bank
10. Current Liability represents a potential obligation that could be created depending on the outcome of an event.
11. Unearned revenues are
12. Statement of Changes in Equity is the ..... between the opening balance and closing balance of shareholder's equity
13. The account which is prepared to determine the gross profit or gross loss of a business
14. Bookkeeping primarily involves all part of the accounting process EXCEPT
15. The art of recording the business transaction in a systematic and regular manner refers to
16. A sole trader has sold his private house but has not recorded anything about it in the business records. What accounting concept is being applied?
17. The correction of record of a transaction which either has not been recorded or has been recorded in incomplete or wrong way is called:
18. A manufacturing entity is entitled to a grant of $ 3 million for creating 50 jobs and maintaining them for three years. $ 1.5m is received when the jobs are created and the remaining $ 1.5m is receivable after three years, provided that the 50 jobs are still in existence. The entity creates 50 jobs at the beginning of year one and there is reasonable assurance that this level of employment will be maintained. What is the deferred income balance at the end of the first year?
19. All information which is relevant to financial statement must be included in the financial statement
20. For the year ended 31 December 2018, the prime cost was $ 80 000, factory overheads totalled $ 120 000, work in progress 1 January 2018 was $ 20 000 and at 31 December 2018 was $ 30 000. What was the cost of production of finished goods?
21. Which of the following are considered to be tangible fixed assets?
22. Which of the following best defines the double-entry system in accounting?
23. The date on a monthly income statement prepared on April 30 is written as:
24. Which of the following bookkeeping terms refers to charges on the patient's account?
25. Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.
26. Bad Debts given only in Trial Balance will appear in
27. December 2020 interest income Rp. 100, 000, but will only receive it next month. The adjusting entry at the end of December 2020 is.....
28. Which of the following refers to a sole proprietorship business?
29. Current ratio is
30. The following are inflows from investment cash flows, except.....
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