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Financial Accounting Quiz 60 (30 MCQs)

Quiz Instructions

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1. The balance of petty cash book is
2. Which one of the following can the accounting equation be written as
3. Financial information that is verifiable means that:
4. Step 6 in the Accounting Cycle
5. Which statement is NOT true:
6. An entity purchased a property 10 years ago at a cost of $ 200, 000 and have been depreciating it at a rate of 2.5% per annum, on the straight-line basis. The entity have had the property professionally revalued at $ 250, 000.What is the revaluation surplus that will be recorded in the financial statements in respect of this plant?
7. What does a positive cash flow from operating activities indicate?
8. When preparing the final accounts of a manufacturing business, carriage inwards on raw materials should always be included in:
9. If an organisation has purchased Furniture
10. Deals with the activities which involves the recording and preparation of reports known as financial statements
11. Under the accrual basis of accounting, expenses are reported in the accounting period when the
12. Assets-Liabilities = Owner's Equity
13. Which is an accounting equation based on expressing the relationship between assets, liabilities, and owner's equity?
14. If the debit side is less than the credit side, the balance is shown as By balance c/f on the credit side of its account and it indicates debit balance.
15. On a bank reconciliation, deposits in transit are
16. Ben purchased 15 percent of Toy Company's 100, 000 shares of common stock on January 2 for $ 200, 000. On December 31, Ben purchased an additional 30, 000 shares of Toy for $ 400, 000. There was no goodwill as a result of either acquisition, and Toy had not issued any additional stock during the year. Toy reported earnings of $ 700, 000 for the year. What amount should Ben report in its December 31 balance sheet as investment in Toy?
17. A book-keeper compared the business bank statement with the cash book. He then updated the cash book and finally prepared a bank reconciliation statement. Why was the bank reconciliation statement prepared?
18. Financial data for the Grow Company's prepaid insurance account is below:Prepaid InsuranceBalance January 1, 2023 4, 200Debit entries during 2023 18, 000Balance December 31, 2023 4, 500 How much did Grow pay for insurance before December 31, 2023 for insurance coverage in 2024?
19. If opening stock of goods is 7, 00, 000-sales 20, 00, 000-purchases = 12, 00, 000, gross profit-4, 00, 000 then find closing stock-
20. Explain the purpose of the income statement.
21. Ledger is called book of
22. Grimtown took out a $ 10 million 6% loan on 1 January 20X1 to build a new football stadium. Not all of the funds were immediately required so $ 2 million was invested in 3% bonds until 30 June 20X1. Construction of the stadium began on 1 February 20X1 and was completed on 31 December 20X1. Calculate the amount of interest to be capitalised in respect of the football stadium as at 31 December 20X1.
23. A Joint Venture ends when .....
24. Goods lying unsold on a particular date when the SOFP is prepared:
25. A statement of financial position is another name for:
26. A company could use ..... to analyze its profits and losses from fiscal period to fiscal period
27. What is the set of financial accounting standards used in the US called?
28. Revenue that results when a plant asset is sold for more than book value.
29. Money received from a business investor would be an example of
30. This information is presented to various people to help them make business decisions.
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