This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 66 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 66 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How to record Credit purchases? A) Dr PurchasesCr Payables. B) Dr CashCr Purchases. C) Dr PayablesCr purchases. D) Dr Purchase Cr Bank. Show Answer Correct Answer: A) Dr PurchasesCr Payables. 2. Accounts payable accounting is not associated with the procurement process. A) True. B) False. Show Answer Correct Answer: B) False. 3. What is the transaction for the purchase of equipment by signing a promissory note? A) Dr equipment, credit note payable. B) Dr equipment, credit accounts payable. C) Dr equipment, credit cash. D) Dr equipment, credit owner's equity. Show Answer Correct Answer: A) Dr equipment, credit note payable. 4. Max Corporation is a 25 percent-owned equity investee of Mor Corporation. During the current year, Mor receives $ 12, 000 in dividends from Max. How does the $ 12, 000 dividend affect Mor's financial position and results of operations? A) Increases income. B) Increases assets. C) Decreases investment. D) Decreases income. Show Answer Correct Answer: C) Decreases investment. 5. Below are not included in the accounts that need to be adjusted A) Income that will still be received. B) Income received in advance. C) Charges paid in advance. D) Accrued expenses. E) Bond debt. Show Answer Correct Answer: E) Bond debt. 6. Which of the following is used to derive missing figures in a system of incomplete records? A) Control account. B) Bank account. C) Profit and loss account. D) Bank statement. Show Answer Correct Answer: A) Control account. 7. This constraint of accounting information does not influence decision making process in an organization. A) Cost benefit. B) Conservatism. C) Materiality. D) Industry practice. Show Answer Correct Answer: C) Materiality. 8. Which side of the ledger would increase an expense? A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 9. Income and expenditure account records transaction of A) Revenue nature only. B) Capital nature only. C) Both revenue and capital nature. D) Income of only revenue nature and expenditure of revenue and capital nature. Show Answer Correct Answer: A) Revenue nature only. 10. What are uncredited items in a bank reconciliation statement? A) Cheques given to suppliers but not yet debited to the bank statement. B) Amount paid directly into the business bank account but not yet debited to the cash book. C) Cheques/cash received from customers but not yet credited to the bank statement. D) Money given to a business from the profit made by a public limited liability company. Show Answer Correct Answer: C) Cheques/cash received from customers but not yet credited to the bank statement. 11. Chad bought a pair of jeans that cost $ 54, but his total was $ 58.32 due to the sales tax. What percent sales tax did he pay? A) 4.32%. B) 80%. C) 8%. D) 6%. Show Answer Correct Answer: C) 8%. 12. The portion of issued capital which is subscribed by the public is called ..... A) Called-up Capital. B) Subscribed Capital. C) Paid-up Capital. D) Nominal Capital. Show Answer Correct Answer: B) Subscribed Capital. 13. Equipment reported on January 1, 2020 Rp. 2, 500, 000. Equipment purchases during 2014 Rp. 4, 600, 000. Equipment remaining on December 31, 2020 Rp. 1, 000, 000. The correct adjustment entry for equipment is..... A) Supplies Expense (D) Rp. 6.100.000Supplies (K) Rp. 6.100.000. B) Supplies Expense (D) Rp. 1.500.000Supplies (K) Rp. 1.500.000. C) Supplies (AND) Rp. 1.000.000 Supplies Expense (KRp. 1.000.000. D) Supplies (D) Rp. 6.100.000Supplies Expense (K) Rp. 6.100.000. Show Answer Correct Answer: A) Supplies Expense (D) Rp. 6.100.000Supplies (K) Rp. 6.100.000. 14. In ordinary business, ..... are intended to be used and not sold A) Land and machinery. B) Assets. C) Fixed assets. D) Liabilities. Show Answer Correct Answer: C) Fixed assets. 15. On 7 April 2020, you received the bank statement for March and found that a RM 12, 000 cheque, which was drawn on 10 September 2020 and paid to the creditor, had not been presented to the bank. A) In Cash Book, Dr Cash and Cr Creditor. B) In Cash Book, Dr Creditor and Cr Cash. C) Bank Rec. item, Add to bank balance. D) Bank Rec. item, less from cash book bal. Show Answer Correct Answer: A) In Cash Book, Dr Cash and Cr Creditor. 16. Profit = capital at the end+drawings-additional capital ..... A) Opening capital. B) Closing capital. C) Loss. D) None of these. Show Answer Correct Answer: A) Opening capital. 17. Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? A) Tax basis accounting. B) Cash basis accounting. C) Accrual basis accounting. D) Revenue basis accounting. Show Answer Correct Answer: C) Accrual basis accounting. 18. The following statements are TRUE regarding the Malaysian Private Entities Reporting Standard (MPERS) and private entities EXCEPT: A) MPERS is also applicable to the public companies in Malaysia. B) MPERS is a self-contained Standard that is applicable only to private entities. C) A private entity is defined as a private company that is not required to prepare or lodge any financial statements under any law administered by the Securities Commission Malaysia or Bank Negara Malaysia. D) Private company can choose whether to comply with the MPERS or MFRS. Show Answer Correct Answer: A) MPERS is also applicable to the public companies in Malaysia. 19. It is because of this concept that fixed assets are recorded at their original cost and depreciation in a systematic manner without reference to their current realizable value. A) Historical Concept Concept. B) Going Concern Concept. C) Realisation Concept. D) Money Measurement Concept. Show Answer Correct Answer: B) Going Concern Concept. 20. A lawyer collected RM52, 000 of legal fees in advance. He erroneously debited Cash for RM27, 000 and credited Accounts Receivable for RM25, 000. The correcting entry is A) DR Cash 52, 000CR Service Revenue 52, 000. B) DR Cash 27, 000CR Accounts Receivable 27, 000. C) DR Cash 25, 000DR Accounts Receivable 27, 000CR Unearned Service Revenue 52, 000. D) DR Cash 27, 000DR Accounts Receivable 25, 000CR Unearned Service Revenue 52, 000. Show Answer Correct Answer: D) DR Cash 27, 000DR Accounts Receivable 25, 000CR Unearned Service Revenue 52, 000. 21. Adjusting entries are designed primarily to correct errors made by bookkeepers. A) True. B) False. Show Answer Correct Answer: B) False. 22. Which side does Discount Allowed belong? A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 23. What are two theories of regulation in political issues? A) Public interest theory and interest group theory. B) Public interest theory and agency theory. C) Agency theory and capture theory. D) Public interest theory and capture theory. Show Answer Correct Answer: A) Public interest theory and interest group theory. 24. ONE REASON THAT AN ENTITY IS ALLOWED TO CHANGE ITS ACCOUNTING POLICY IS WHEN A) IT IS REQUIRED BY ACCOUNTING STANDARD. B) IT IS REQUIRED BY LAW. C) IT IS ORDERED BY MANAGEMENT. D) ALL OF THESE. Show Answer Correct Answer: A) IT IS REQUIRED BY ACCOUNTING STANDARD. 25. Which of the following statements is not part of the share issuance procedure: A) The government gives full power to companies in issuing bonds. B) Shareholders and the board of directors must approve the bond issuance. C) Shareholders must determine the amount of bonds to be authorized. D) The conditions for issuing bonds are regulated in a legal document called a bond indenture. Show Answer Correct Answer: C) Shareholders must determine the amount of bonds to be authorized. 26. Commission Received account is a A) Nominal Account. B) Impersonal Account. C) Personal Account. D) Real Account. Show Answer Correct Answer: A) Nominal Account. 27. How does financial accounting differ from managerial accounting? A) Financial accounting focuses on internal decision-making, while managerial accounting focuses on external reporting to stakeholders. B) Financial accounting and managerial accounting are the same and can be used interchangeably. C) Financial accounting is only used by small businesses, while managerial accounting is only used by large corporations. D) Financial accounting focuses on external reporting to stakeholders, while managerial accounting focuses on internal decision-making for management. Show Answer Correct Answer: D) Financial accounting focuses on external reporting to stakeholders, while managerial accounting focuses on internal decision-making for management. 28. Entries to expenses such as Rent Expense are usually A) Debits. B) Credits. Show Answer Correct Answer: A) Debits. 29. What type of business operates with a limited amount of capital? and it is difficult to expand the business A) Partnership. B) Limited company. C) Public limited company. D) One owner. Show Answer Correct Answer: D) One owner. 30. XYZ Bhd took over the business of a partnership at a price of RM300, 000. The assets taken over were valued at RM450, 000 and the liabilities at RM100, 000. Which of the following does the difference of RM50, 000 refer to? A) Revenue Reserve. B) Goodwill. C) Net worth. D) Capital Reserve (Gain On Bargain Purchase). Show Answer Correct Answer: D) Capital Reserve (Gain On Bargain Purchase). ← 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