This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 57 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A person whom the firm owes money on account of credit purchase A) Trade receivable. B) Customer. C) Seller. D) Trade payable. Show Answer Correct Answer: D) Trade payable. 2. The time value of money is based on: A) Interest and market value. B) Interest and time. C) Market value and time. D) Future interest rates. Show Answer Correct Answer: B) Interest and time. 3. Assumes that every transaction affects two accounts in a set of financial statements. A) Duality Concept. B) Accrual Concept. C) Separate Entity Concept. D) Matching Concept. Show Answer Correct Answer: A) Duality Concept. 4. Return inward appearing in trial balance are adjusted from A) Return Outward A/c. B) Capital A/c. C) Sales A/c. D) Purchase A/c. Show Answer Correct Answer: C) Sales A/c. 5. Information needed to prepare an income statement's Expense section is obtained from a work sheet's Account Title column and: A) Balance Sheet Credit column. B) Balance Sheet Debit column. C) Income Statement Credit column. D) Income Statement Debit column. Show Answer Correct Answer: D) Income Statement Debit column. 6. The John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B. The John Marketing Company recognizes this revenue in year A. This action of John Marketing Company is justified by A) Revenue recognition principle. B) Economic entity concept. C) Going concern concept. D) Business entity concept. Show Answer Correct Answer: A) Revenue recognition principle. 7. Special identifications that are protected against infringement. A) Trademark. B) Goodwill. C) Patents. D) Copyrights. Show Answer Correct Answer: A) Trademark. 8. A concept of accounting in which expenses are matched with the revenue generated during a period by those expenses. A) Matching. B) Going Concern. C) Separate Entity. D) Accrual. Show Answer Correct Answer: A) Matching. 9. Report that lists the balances of all general ledger accounts of a company at a certain points of time. A) Journal. B) Source document. C) Trial balance. D) Chart of accounts. Show Answer Correct Answer: C) Trial balance. 10. A report of the net income or net loss for an accounting period. A) Income statement. B) Balance sheet. C) Cash flow statement. D) None of the above. Show Answer Correct Answer: A) Income statement. 11. What is direct factory wages? A) Wages of the people employed in the factory making the goods. B) Wages of people employed in the factory but who are not involved in the actual production process. Show Answer Correct Answer: A) Wages of the people employed in the factory making the goods. 12. When the asset is purchased on credit ..... account is credited A) Personal account. B) Asset Account. C) Bank Account. D) All of the above. Show Answer Correct Answer: A) Personal account. 13. A business paid cash for supplies. How is this transaction recorded? A) Debit cash, debit supplies. B) Debit cash, credit supplies. C) Credit cash, debit supplies. D) Credit cash, credit supplies. Show Answer Correct Answer: C) Credit cash, debit supplies. 14. Under branch account, debtors system cash sales is shown in the ..... A) Debit. B) Credit. C) Asset. D) None. Show Answer Correct Answer: D) None. 15. Accumulated depreciation is: A) Contra-liability account. B) Liability account. C) Contra-asset account. D) Asset account. Show Answer Correct Answer: C) Contra-asset account. 16. Production for the preservation (maintenance) of fixed assets is an action aimed at ..... A) Replacing some or all of the fixed asset components so that they function properly. B) Returning fixed assets to their original condition. C) Maintaining fixed assets functioning normally in good condition. D) Increasing capacity or extending the life of fixed assets. Show Answer Correct Answer: C) Maintaining fixed assets functioning normally in good condition. 17. Income and Expenditure Account is prepared to find out A) Profit or loss. B) Cash and bank balance. C) Surplus or deficit. D) Financial position. Show Answer Correct Answer: C) Surplus or deficit. 18. The net income calculated for the income statement and the net income on the work sheet can be different because of adjusting entries. A) False. B) True. Show Answer Correct Answer: A) False. 19. Who is the target audience of managerial accounting? A) All employees of the business. B) Internal managers. C) Existing and potential investors, lenders, and creditors. D) Regulators and the public. Show Answer Correct Answer: B) Internal managers. 20. The most important conventions are; A) Convention of Disclosure. B) Conventions of Consistency. C) Convention of Conservatism. D) Conventions of Materiality. E) All of the above. Show Answer Correct Answer: E) All of the above. 21. The usual sequence of steps in the transaction recording process is: A) Journal-analyze-ledger. B) Journal-ledger-analyze. C) Ledger-journal-analyze. D) Analyze-journal-ledger. Show Answer Correct Answer: D) Analyze-journal-ledger. 22. What is the calculated total for the carrying value on 1 March 2020 for vehicles? (question 2) A) R 65000. B) R 62000. C) R 60000. D) R 63250. Show Answer Correct Answer: D) R 63250. 23. Fixed assets adalah ..... A) Tangible fixed assets used in the normal activities of the company that are more than one year old. B) Fixed assets that do not have a physical form but that have economic benefits for an economic entity. C) Tangible fixed assets used in the normal activities of a company that are less than one year old. D) Assets that an entity acquires and resells without changing the form of the asset. Show Answer Correct Answer: A) Tangible fixed assets used in the normal activities of the company that are more than one year old. 24. Owner's capital at the end of the period is equal to A) Owner's capital at the beginning of the period plus net income minus drawings. B) Owner's capital at the beginning of the period plus net income minus liabilities. C) Net income. D) Assets plus liabilities. Show Answer Correct Answer: A) Owner's capital at the beginning of the period plus net income minus drawings. 25. Reversing entries are A) Dated the first day of the next accounting period. B) Optional. C) Used to simplify a company's record keeping. D) Linked to accrued assets and liabilities that were created by adjusting entries at the end of the previous accounting period. E) All of the above. Show Answer Correct Answer: E) All of the above. 26. To increase the balance in the following accounts, would you debit the account or would you credit the account?Cash A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 27. Depreciation on hire purchased asset is claimed by A) No depreciation is claimed till the last instalment is paid/received. B) Hire purchaser. C) Hire vendor. D) Either the hire vendor or the hire purchaser as per the agreement between them. Show Answer Correct Answer: B) Hire purchaser. 28. Before recording adjusting entries, the Office Supplies account had a $ 359 debit balance while a physical count of the supplies showed $ 105 of unused supplies on hand. Thus, the required adjusting entry is A) Some other entry. B) Debit Office Supplies $ 105 and credit Office Supplies Expense $ 105. C) Debit Office Supplies Expense $ 105 and credit Office Supplies $ 105. D) Debit Office Supplies $ 254 and credit Office Supplies Expense $ 254. E) Debit Office Supplies Expense $ 254 and credit Office Supplies $ 254. Show Answer Correct Answer: E) Debit Office Supplies Expense $ 254 and credit Office Supplies $ 254. 29. The characteristic of writing off receivables using the allowance method is the existence of an account..... A) Bad Debt Expense. B) Allowance for Doubtful Debt. C) Accounts Receivable. D) Merchandise Inventory. Show Answer Correct Answer: B) Allowance for Doubtful Debt. 30. Expenses that have been paid by the company but have not been recognized as expenses in the period concerned that have benefits beyond one accounting period are called..... A) Unearnes revenue. B) Accrued revenue. C) Operating expense. D) Prepaid expense. E) Accrued expense. Show Answer Correct Answer: D) Prepaid expense. ← 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