This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 65 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Financial accounting reports include A) Profit & loss account. B) Directors report. C) Balance sheet & auditor's report. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. The selling price of an asset less the asset's net book value will calculate: A) The gain or loss on sale. B) Straight-line depreciation. C) The asset's accumulated depreciation. D) Salvage value. Show Answer Correct Answer: A) The gain or loss on sale. 3. Cash checks are carried out when..... A) Every day. B) Once a week. C) Anytime. D) Once a month. Show Answer Correct Answer: C) Anytime. 4. The PCAOB was created in what year? A) 1902. B) 2002. C) 1913. D) 2001. Show Answer Correct Answer: B) 2002. 5. The purpose of financial accounting is to provide information for ..... A) Assessing the profitability and financial position of the firm. B) Fixing prices. C) Locating factors leading to wastages and losses. D) Cost control. Show Answer Correct Answer: A) Assessing the profitability and financial position of the firm. 6. The ..... can transfer the right to cash a check to another party by endorsing it. A) Payee. B) Bank officer. C) Payer. D) Accountant. Show Answer Correct Answer: A) Payee. 7. Trading account is a A) Personal account. B) Real account. C) Nominal account. D) None of the above. Show Answer Correct Answer: C) Nominal account. 8. In single entry, the capital is ascertain by preparing ..... A) Cash book. B) Creditors account. C) Statement of affairs. D) Debtors account. Show Answer Correct Answer: C) Statement of affairs. 9. On January 2 2011, ABC company purchased a machine for Rp. 100, 000, 000 with an economic life of 4 years. The machine has no residual value. What is the depreciation expense at the end of 2011 if you use the double declining balance method? A) Rp. 50.000.000. B) Rp. 25.000.000. C) Rp. 75.000.000. D) Rp. 6.250.000. E) Rp. 12.500.000. Show Answer Correct Answer: A) Rp. 50.000.000. 10. How does net loss affect owner's equity? A) Increases. B) No change. C) Indirectly. D) Decreases. Show Answer Correct Answer: D) Decreases. 11. A credit to an liability account increases the balance. A) True. B) False. Show Answer Correct Answer: A) True. 12. Are management accountants required by law? A) Yes, they are legally required for all businesses. B) No, they are not legally required. C) Yes, but only for large businesses. D) No, but they are highly recommended. Show Answer Correct Answer: B) No, they are not legally required. 13. What are the differences between bookkeeping and accounting? A) Accounting is only a part of bookkeeping. B) Bookkeeping is only a part of accounting. C) They are completely different. D) No difference. Show Answer Correct Answer: B) Bookkeeping is only a part of accounting. 14. How is equity measured for accounting purposes? A) Future sacrifices of economic benefits that a business owes to other entities. B) Durable produced goods used as productive inputs. C) Ownership interest in property offset by debts or liabilities. D) The total amount of income generated by the sale of goods and services. Show Answer Correct Answer: C) Ownership interest in property offset by debts or liabilities. 15. Which book of original entry records the key detailed information for each individual credit sale to a customer? A) Purchases Returns Daybook. B) Sales Daybook. C) Purchases Daybook. D) Sales Returns Daybook. Show Answer Correct Answer: B) Sales Daybook. 16. The following is an example of expenditure using petty cash, namely..... A) Debt repayment. B) Purchase of merchandise. C) Payment of employee salaries. D) Purchase of office supplies. Show Answer Correct Answer: D) Purchase of office supplies. 17. In the balance sheet, a debit balance in Unrealized Gain or Loss-Equity is reported as a(n): A) Loss in the income statement. B) Decrease to stockholders' equity. C) Increase to stockholders' equity. D) Loss in the retained earnings statement. Show Answer Correct Answer: B) Decrease to stockholders' equity. 18. An owner's personal expenses should be kept separate from the business A) Business Entity Principle. B) Going Concern Principle. C) Full Disclosure Principle. D) Accrual Accounting. Show Answer Correct Answer: A) Business Entity Principle. 19. Outstanding Income is A) Asset. B) Liability. C) Dont Know. D) None of above. Show Answer Correct Answer: A) Asset. 20. An adjusted trial balance A) Shows the ending account balance in a "debit" and "credit" format before posting the adjusting journal entries. B) Is prepared after closing entries have been posted. C) Shows the ending account balances resulting from the adjusting journal entries in a "debit" and "credit" format. D) Is a tool used by financial analysts to review the performance of publicly traded companies. Show Answer Correct Answer: C) Shows the ending account balances resulting from the adjusting journal entries in a "debit" and "credit" format. 21. Which of the following is not the element of financial statements? A) Revenues. B) Assets. C) Shareholders. D) Gains. Show Answer Correct Answer: C) Shareholders. 22. Interim financial reports are financial reports A) In which revenues are reported in the income statement when cash is received and expenses are reported when cash is paid. B) That are prepared before any adjustments have been recorded. C) Covering less than one year, usually based on one-or three-month periods. D) In which the adjustment process is used to assign revenues to the periods in which they are earned and to match expenses with revenues. E) That show the assets above the liabilities and the liabilities above the equity. Show Answer Correct Answer: C) Covering less than one year, usually based on one-or three-month periods. 23. The inventory of goods at the end of the period is valued with the assumption that the last goods entered (purchased) are considered to be the first to go out (sold). This method of recording inventory is called..... A) First in first out. B) Retail method. C) Gross margin method. D) Specific identifications method. E) Last in first out. Show Answer Correct Answer: E) Last in first out. 24. The total amount of money received from debtors, in addition to being recorded in the bank account, should be ..... A) Debited to the sales account. B) Debited to the debtors control account. C) Credited to the debtors control account. D) Credited to the sales account. Show Answer Correct Answer: C) Credited to the debtors control account. 25. (j) ..... :is also called a debit memorandum, a banker sends to customers to inform them of deductions from their accounts. In other words, it refers to a decrease in a deposit account balance, such as a check posted to the account. A) Debit advice. B) Credit advice. C) Quotation. D) Invoice. E) Receipt. Show Answer Correct Answer: A) Debit advice. 26. Anything that has value which provides service to an organization is known as: A) Liability. B) Creditors. C) Assets. D) Capital. Show Answer Correct Answer: C) Assets. 27. Liabilities and assets Amt to Rs50, 000 and Rs 78, 000 respectively. The difference Amt will represent A) Debentures. B) Capital. C) Creditors. D) Profit. Show Answer Correct Answer: B) Capital. 28. Trade Receivable A) The amount of money your customers or clients owe your business for goods or services you supply. B) Total revenues minus total expenses. C) How much profit you keep relative to total sales. D) None of above. Show Answer Correct Answer: A) The amount of money your customers or clients owe your business for goods or services you supply. 29. Activities that result in changes in the amount and composition of capital contributions and company loans are..... A) Operational Activities. B) Funding Activities. C) Investment Activities. D) Cost Activity. Show Answer Correct Answer: B) Funding Activities. 30. Mr. Rakesh gets total issued shares 100 @ Rs. 10 (Received from them = Rs. 3 on application, On allotment = Rs. 4, but did not receive Rs. 3 from the final call. Make Journal Entry for forfeiture of shares- A) Share Capital A/c Dr. 1000To Share Final Call A/c 700To Forfeited Shares A/c 300. B) Share Capital A/c Dr. 1000To Share Final Call A/c 300To Forfeited Shares A/c 700. C) Share Final Call A/c Dr. 300Forfeited Shares A/c Dr. 700To Share Capital A/c 1000. D) Share Capital A/c Dr. 1000To Forfeited Shares A/c 1000. Show Answer Correct Answer: B) Share Capital A/c Dr. 1000To Share Final Call A/c 300To Forfeited Shares A/c 700. ← 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