This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 61 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Discount column in the cash book is A) Always balanced. B) Only totalled. C) Never written. D) All of the above. Show Answer Correct Answer: B) Only totalled. 2. Asset accounts have what type of balance? A) Debit. B) Credit. C) Contra. D) All of the above. Show Answer Correct Answer: A) Debit. 3. What is the scope of managerial accounting? A) Narrow, focusing on specific departments and cost centers. B) No specific scope. C) Broad, consolidating results of all business units. D) Limited to financial information only. Show Answer Correct Answer: A) Narrow, focusing on specific departments and cost centers. 4. In absence of partnership deed the profit or loss should be distributed among partners in their capital ratio. A) False. B) True. Show Answer Correct Answer: A) False. 5. Which is a Type of Account? A) Debit. B) Trading. C) Nominal. D) Credit. Show Answer Correct Answer: C) Nominal. 6. Hanes Company sells debt investments costing $ 26, 000 for $ 28, 000. In journalizing the sale, credits are to: A) Debt Investments and Loss on Sale of Debt Investments. B) Debt Investments and Gain on Sale of Debt Investments. C) Stock Investments and Gain on Sale of Stock Investments. D) No correct answer is given. Show Answer Correct Answer: B) Debt Investments and Gain on Sale of Debt Investments. 7. Oil India Limited (OIL) belongs to which type of industry? A) Joint sector. B) Public sector. C) Private sector. D) Cooperative. Show Answer Correct Answer: A) Joint sector. 8. On March 10 2018 the equipment amounted to IDR 600, 000.00 and after stock taking, the remaining equipment was IDR 250, 000.00. So the adjusting journal entry as of December 31 2018 is..... A) Supplies (DI) Rp. 250, 000.00 Equipment expenses (K) Rp. 250, 000.00. B) Supplies Expense (D) Rp. 350, 000.00 Supplies (K) Rp. 350, 000.00. C) Supplies (D) Rp. 600, 000.00 Equipment expenses (K) Rp. 600, 000.00. D) Supplies Expense (D) Rp. 250, 000.00 Supplies (K) Rp. 250, 000.00. E) Supplies (D) Rp. 350, 000.00 Equipment expenses (K) Rp. 350, 000.00. Show Answer Correct Answer: B) Supplies Expense (D) Rp. 350, 000.00 Supplies (K) Rp. 350, 000.00. 9. Which liability become payable only on the happening of an event? A) Fixed Liability. B) Current Liability. C) Contingent Liability. D) None. Show Answer Correct Answer: C) Contingent Liability. 10. What is the purpose of a cashbook? A) To prepare financial statements for the business. B) To record monthly bank transactions. C) To show actual cash/cheque received and paid on a daily basis. D) To calculate business profits. Show Answer Correct Answer: C) To show actual cash/cheque received and paid on a daily basis. 11. Purpose of cash and cash equivalent based on operating activities A) Revenue producing activities such as Sales of Good and Services. B) Transaction involves acquisition and disposal of non-current assets. C) Cash payments to acquire non-current assets such as PPE. D) Involve obtaining and repaying of financial resources from owners and other providers of non-current capital on which providers receive a return. Show Answer Correct Answer: A) Revenue producing activities such as Sales of Good and Services. 12. Unused supplies is Rp3.500.000, in the Trial Balance there is an Supplies Expense account Rp4.700.000 A) Supplies (D) Rp3.500.000 Supplies Expense (K) Rp3.500.000. B) Supplies (D) Rp1.200.000 Supplies Expense (K) Rp1.200.000. C) Supplies Expense (D) Rp1.200.000 Supplies (K) Rp1.200.000. D) Supplies Expense (D) Rp3.500.000 Supplies (K) Rp3.500.000. Show Answer Correct Answer: A) Supplies (D) Rp3.500.000 Supplies Expense (K) Rp3.500.000. 13. How should the goodwill on business purchase be shown in the financial statement? A) As an expense in Profit And Loss Account. B) As an intangible asset in Statement Of Financial Position. C) As a current liability in Statement Of Financial Position. D) As a long-term loan in Statement Of Financial Position. Show Answer Correct Answer: B) As an intangible asset in Statement Of Financial Position. 14. 1) Trial balance. 2) Books of prime entry. 3) Financial statements. 4) Ledger accounts.Choose the Correct order. A) 2-4-1-3. B) 1-3-4-2. C) 2-1-4-3. D) 4-2-1-3. Show Answer Correct Answer: A) 2-4-1-3. 15. The basic function of financial accounting is to A) Interpret the financial data. B) Record all business transactions. C) Assist the management in performing function effectively. D) None of these. Show Answer Correct Answer: B) Record all business transactions. 16. We are going to manufacture Whats-Its. The Whats-It machine costs $ 4000.It also costs $ 5 for materials and labour for each Whats-It. We are planning to sell our Whats-Its for $ 12 each. How many Whats-Its must we sell in order to breakeven?Make sure your breakeven figure is a round number. A) 570. 63. B) 572. C) 571. D) 571.42. Show Answer Correct Answer: B) 572. 17. What is the focus of financial accounting? A) Future planning and decision-making. B) Presenting information to internal managers. C) Reporting on past transactions and events. D) Managing risks within a business. Show Answer Correct Answer: C) Reporting on past transactions and events. 18. Rule of Personal Account is A) Dr. all expenses and losses, Cr. All incomes and gains. B) Dr. the receiver & Cr. the giver. C) Dr. what comes in cr. what goes out. D) None of the above. Show Answer Correct Answer: B) Dr. the receiver & Cr. the giver. 19. Which of the following is correct? A) Accounting helps in tracking the costs pertaining to IT software project execution. B) Accounting helps in recording financial transactions. C) Accounting interprets the financial data. D) Accounting helps in the allocation of resources. E) All of the above. Show Answer Correct Answer: E) All of the above. 20. If average variable cost is $ 10, and average selling price is $ 25, then what is contribution? A) $ 15. B) $ 40. C) $ -15. D) $ 35. Show Answer Correct Answer: A) $ 15. 21. What is the transaction for receiving cash on account? A) Credit cash, debit accounts payable. B) Debit cash, credit accounts receivable. C) Debit cash, credit accounts payable. D) Credit cash, debit accounts receivable. Show Answer Correct Answer: B) Debit cash, credit accounts receivable. 22. The decrease in the value of a plant asset because of the removal of a natural resource. A) Salvage value. B) Loss on plant asset. C) Gain on plant asset. D) Depletion. Show Answer Correct Answer: D) Depletion. 23. An accounting period is the interval of time at the end. A) Periodicity Concept. B) Money Measurement. C) Dual Aspect. D) Business Entity. Show Answer Correct Answer: A) Periodicity Concept. 24. The books of LLP are to be retained for ..... years. A) 8. B) 5. C) 6. D) 7. Show Answer Correct Answer: A) 8. 25. The important points made in the definition of accounting include all of the following, except A) Accounting information is quantitative. B) Accounting information is both quantitative and qualitative. C) Accounting information is financial in nature. D) Accounting information is useful in decision making. Show Answer Correct Answer: B) Accounting information is both quantitative and qualitative. 26. A segment is a division of an enterprise for which management monitors performance separately from other segments. A) True. B) False. Show Answer Correct Answer: A) True. 27. A company's financial position would be best evaluated using the ..... A) Auditor's Report. B) Income Statement. C) Balance Sheet. D) Statement of Cash Flows. Show Answer Correct Answer: C) Balance Sheet. 28. Which of the following items will be used to calculate the goodwill when a company takes over another firm? I. Purchase price II. The capital of vendor III. The liabilities taken over IV. The value of assets taken over A) I, III, IV. B) I, II. C) III, IV. D) I, II, III. Show Answer Correct Answer: A) I, III, IV. 29. Accounts payable accounting is concerned with vendors. A) False. B) True. Show Answer Correct Answer: B) True. 30. A person who supplies goods to the business is known as A) Debtor. B) Owner. C) Creditor. D) None of this. Show Answer Correct Answer: C) Creditor. ← 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