This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 71 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All of the following describe accounting, except A) An information system. B) An exact science rather than an art. C) A universal language of business. D) A service activity. Show Answer Correct Answer: B) An exact science rather than an art. 2. A block of time covered by an accounting report. Also known as a fiscal period. A) Accounting period. B) Calendar. C) Calendar period. D) None of the above. Show Answer Correct Answer: A) Accounting period. 3. Limit of Minimum Number of Partners is Fixed by A) Companies Act 1956. B) Partnership Act 1932. C) New Companies Act 2013. D) None of the Above. Show Answer Correct Answer: B) Partnership Act 1932. 4. The expired rent is 1/4 of the existing amount, in the Balance Sheet there is a Prepaid Rent account amounting to IDR 24, 000, 000 A) DBM Rent (K) Rp. 12, 000, 000 Rent Expense (K) Rp. 12, 000, 000. B) DBM Rent (D) Rp6, 000, 000 Rent Expense (K) Rp6, 000, 000. C) Rent Expense (D) IDR 12, 000, 000 DBM Rent (K) IDR 12, 000, 000. D) Rent Expense (D) Rp6, 000, 000 DBM Rent (K) Rp6, 000, 000. Show Answer Correct Answer: D) Rent Expense (D) Rp6, 000, 000 DBM Rent (K) Rp6, 000, 000. 5. Any loan given by a partner to the business where there is no partnership agreement attracts an annual interest of A) 3%. B) 5%. C) 6%. D) 4%. Show Answer Correct Answer: B) 5%. 6. The adjusting entries are made: A) At the end of every accounting period. B) After six months. C) At the end of every quarter. D) At the end of every month. Show Answer Correct Answer: A) At the end of every accounting period. 7. What is "goods" in English? A) Goods in transit. B) Outward goods on consignment. C) Merchandise inventories. D) None of above. Show Answer Correct Answer: C) Merchandise inventories. 8. Depreciation is defined as:allocation of ..... of non-current asset over its ..... A) Selling price remaining life. B) Costremaining life. C) Selling priceuseful life. D) Costuseful life. Show Answer Correct Answer: D) Costuseful life. 9. The financial statements of a limited liability company will consist solely of the statement of financial position and statement of profit or loss. Is this statement true or false? A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 10. The hire purchase Act came into force from the year 1972 A) True. B) False. Show Answer Correct Answer: B) False. 11. Find the term to match the meaning below:Total value of inventory purchased from suppliers by the business for resale A) Closing Inventory. B) Expenses. C) Other Income. D) Purchases. Show Answer Correct Answer: D) Purchases. 12. Objective of Financial Accounting A) Ascertain Profit or Loss. B) Ascertain Financial Position. C) Both the above. D) None of the above. Show Answer Correct Answer: C) Both the above. 13. There are several of the Characteristics of ideal theory, except A) Having the quality of authenticity and also authoritative. B) The ability analysing and forecast future events. C) Must be wide acceptance. D) Verifiable through testing of hypothesis. Show Answer Correct Answer: B) The ability analysing and forecast future events. 14. The amount of revenue that remains after expenses for the accounting period subtracted from the gross profit on sales. A) Expense. B) Revenue. C) Cost of merchandise sold. D) Net income. Show Answer Correct Answer: D) Net income. 15. A Company in which the maximum number of members is restricted is called ..... A) Public Company. B) Unlimited Company. C) Government Company. D) Private Company. Show Answer Correct Answer: D) Private Company. 16. The amount borrowed; this is the non-interest portion paid back when making loan payments A) Interest. B) Principal. C) Loan Payable. D) Note Payable. Show Answer Correct Answer: B) Principal. 17. Which of the following is not a source document? A) Invoice. B) Receipt. C) Money. D) Credit note. Show Answer Correct Answer: C) Money. 18. Describe the key characteristics of financial accounting. A) Subjectivity, inconsistency, irrelevance, unreliability. B) Accuracy, precision, timeliness, honesty. C) Flexibility, uniqueness, individuality, creativity. D) Objectivity, reliability, relevance, comparability, and consistency. Show Answer Correct Answer: D) Objectivity, reliability, relevance, comparability, and consistency. 19. The professional organization that CPAs may join. The AICPA creates and administers the CPA exam and nurtures CPA professional practice A) American Institute of Certified Public Accountants. B) Financial Accounting Standards Board. C) Federal Accountants Association. D) Internal Revenue Service. Show Answer Correct Answer: A) American Institute of Certified Public Accountants. 20. When the issue price is higher than the face value, the issue is termed as ..... A) Issued at Discount. B) Issued at Premium. C) Issued at Par. D) None of the Above. Show Answer Correct Answer: B) Issued at Premium. 21. Single entry system of book keeping is A) (a) Simple. B) (b) Unauthorized by tax authorities. C) C) Unscientific. D) (d) all of these. Show Answer Correct Answer: D) (d) all of these. 22. As per AS-7 expenses recognized in the period in which the work to which expenses relate is performed. A) False. B) True. Show Answer Correct Answer: B) True. 23. Internal control procedures A) Eliminate the risk of loss. B) Eliminate the risk of loss and include policies and procedures to safeguard assets. C) Include policies and procedures to safeguard assets. D) Prevent unavoidable losses. E) All of the above. Show Answer Correct Answer: C) Include policies and procedures to safeguard assets. 24. The items, raw materials inventory, work in progress inventory and finished goods inventory are MOST like seen together on the balance sheet of a A) Shoe factory. B) Garage. C) Supermarket. D) Bus company. Show Answer Correct Answer: A) Shoe factory. 25. When Machinery purchased ..... account will be debited A) Personal Account. B) Machinery Account. C) Bank Account. D) Cash Account. Show Answer Correct Answer: B) Machinery Account. 26. Which of the following accounts is nominal A) Interest. B) Outstanding interest. C) Sales account. D) Purchase account. Show Answer Correct Answer: A) Interest. 27. Mr. A withdrew business money for personal use. You can save your account by A) Cash debit, credit withdrawal for personal use. B) Debit capital of Mr. A, credit withdrawal for personal use. C) Not recording the program. D) Debit withdrawal for personal use, credit cash. Show Answer Correct Answer: D) Debit withdrawal for personal use, credit cash. 28. Positive is a hypotheses that are tested against actual events A) True. B) False. Show Answer Correct Answer: A) True. 29. What is mean by Assets? A) Sales. B) Purchases. C) Propertys. D) Loans. Show Answer Correct Answer: C) Propertys. 30. Gross Profit Percent helps a business to measure? A) Sales. B) Profitability before other operating expenses. C) To analyze and assess a company's financial performance. D) A ruler. Show Answer Correct Answer: C) To analyze and assess a company's financial performance. ← 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