This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 73 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Arrange the sequence accounting cycleA) AnalyzingB) RecordingC) SummarizingD) InterpretingE) Classifying A) BCEDA. B) BECDA. C) BECAD. D) BCEAD. Show Answer Correct Answer: C) BECAD. 2. WHICH OF THE FOLLOWING IS NOT CONSIDERED A FINANCIAL INSTRUMENT A) TAXES PAYABLE. B) ACCOUNTS RECEIVABLE. C) BONDS PAYABLE. D) INVESTMENT IN EQUITY SECURITIES. Show Answer Correct Answer: A) TAXES PAYABLE. 3. If during a petty cash inspection it is found that the physical amount of petty cash is greater than the record balance then this will occur..... A) Cash shortage. B) Cash overage. C) Cash opname. D) Cash on hand. Show Answer Correct Answer: B) Cash overage. 4. Journal is called a book of A) Primary entry. B) Secondary entry. C) Final entry. D) None of the above. Show Answer Correct Answer: A) Primary entry. 5. ALL OF THE FOLLOWING SHOULD BE INCLUDED IN INVENTORY, EXCEPT: A) MERCHANDIZE SENT OUT ON CONSIGNMENT. B) MERCHANDIZE SOLD IN TRANSIT FOB DESTINATION. C) MERCHANDIZE PURCHASED IN TRANSIT FOB SHIPPING POINT. D) MERCHANDIZE SOLD IN TRANSIT FOB SHIPPING POINT. Show Answer Correct Answer: D) MERCHANDIZE SOLD IN TRANSIT FOB SHIPPING POINT. 6. How does the Conceptual Framework define an asset? A) A resource owned by an entity as a result of past events and from which future economic benefits are expected to flow to the entity. B) A resource over which an entity has legal rights as a result of past events and from which economic benefits are expected to flow to the entity. C) A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity. D) A resource to which an entity has a future commitment as a result of past events and from which future economic benefits are expected to flow from the entity. Show Answer Correct Answer: C) A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity. 7. Person who owes money to the business A) Creditor. B) Proprietor. C) Debtor. D) Bank. Show Answer Correct Answer: C) Debtor. 8. Sold goods worth Rs 1800 to Rustam, for which Rustam paid Rs.1780 in full settlement, remaining amount will be considered as A) Discount received. B) Discount allowed. C) Bad debts. D) None of the above. Show Answer Correct Answer: B) Discount allowed. 9. Which of the following defines outstanding salary account? A) Natural personal account. B) Real account. C) Representative personal account. D) Artificial personal account. Show Answer Correct Answer: C) Representative personal account. 10. Which is a business liability? A) Cash. B) Machinery. C) Creditors. D) Building. Show Answer Correct Answer: C) Creditors. 11. It is known in the balance sheet that the Rent Expense account is IDR 4, 200, 000. The rental contract has been running since October 1 2009 for a period of one year, so the adjusting journal made on December 31 2009 is..... A) Prepaid rent (D) Rp. 1, 050, 000; Rent expense (K) IDR 1, 050, 000. B) Rent expense (D) IDR 1, 050, 000; Prepaid rent (K) Rp. 1, 050, 000. C) Rent expense (D) Rp 3, 150, 000; Rent paid in advance (K) Rp3.150.000. D) Rent paid in advance (D) Rp 3, 150, 000; Rent expense (K) Rp3.150.000. Show Answer Correct Answer: D) Rent paid in advance (D) Rp 3, 150, 000; Rent expense (K) Rp3.150.000. 12. When a company issues shares to the public for the first time, the issue is called as ..... A) FPO. B) Offer for Sale. C) IPO. D) None of the Above. Show Answer Correct Answer: C) IPO. 13. Determine the annuity of the depreciation and the date v of an Aquise machine, 05/07/2001 and the equation of the VCN is equal to the date v:$VCN\ =\ 15x\-x\ \left( \frac{8}{12}+10+\frac{11}{12}\right)\ =\ $75400 A) V:12/12/2013 Annuity:16, 800. B) V:12/12/2012 Annuity:16, 800. C) V:12/12/2013 Annuity:19, 500. D) V:12/12/2012 Annuity:19, 500. Show Answer Correct Answer: B) V:12/12/2012 Annuity:16, 800. 14. The Income Statement reports a hospitality organization's performance over a period of time. A) False. B) True. Show Answer Correct Answer: B) True. 15. Outstanding Wages A/c is a Personal Account A) True. B) False. Show Answer Correct Answer: A) True. 16. The elements of faithful representation are ..... A) Completeness, neutrality and free from error. B) Predictive, confirmatory value and cost. C) Timeliness, understandability and neutral. D) Comparability, verifiability and materiality. Show Answer Correct Answer: A) Completeness, neutrality and free from error. 17. What is the minimum capital fixed in a private company? A) 1 lakh rupees. B) 5 lakh rupees. C) Zero. D) 3 lakh rupees. Show Answer Correct Answer: A) 1 lakh rupees. 18. Retained Earnings is a permanent account, therefore, it is not closed during the closing process. A) False. B) True. Show Answer Correct Answer: B) True. 19. How can the medical assistant help prevent collection problems? A) Mandate all payments at time of service. B) Make payment arrangements before the patient is allowed to see physician. C) Inform the patient of the payment policy at the first visit or call. D) Insist upon credit card payment. Show Answer Correct Answer: C) Inform the patient of the payment policy at the first visit or call. 20. How do you calculate Gross Profit? A) Sales-NP. B) COGS-NP. C) COGS-Expenses. D) Sales-COGS. Show Answer Correct Answer: D) Sales-COGS. 21. Identify the type of expenditure. Transportation cost on materials for new warehouse A) Capital. B) Revenue. Show Answer Correct Answer: A) Capital. 22. To increase the balance in the following accounts, would you debit the account or would you credit the account?Accounts Receivable A) Debit. B) Credit. Show Answer Correct Answer: A) Debit. 23. All cash transactions be it of revenue or capital nature are to be recorded in Receipt and Payment Account A) False. B) True. Show Answer Correct Answer: B) True. 24. For the year ending 31-3-2014 loan taken on 1-7-2013, interest will be calculated for A) 9 Months. B) 12 Months. C) 6 Months. D) None. Show Answer Correct Answer: A) 9 Months. 25. Debits will increase asset balances A) True. B) False. Show Answer Correct Answer: A) True. 26. You intended to buy a new clothes next week for $ 30? Is this amount is A) Considered a revenue for the store you intended to buy from. B) It considered a decrease in your income now". C) An expense for you now?. D) Not considered an an accounting transaction. Show Answer Correct Answer: D) Not considered an an accounting transaction. 27. Collection of a $ 1, 500 Accounts Receivable A) Decreases an asset $ 1, 500; decreases a liability $ 1, 500. B) Decreases a liability $ 1, 500; increases owner's equity $ 1, 500. C) Increases an asset $ 1, 500; decreases an asset $ 1, 500. D) Increases an asset $ 1, 500; decreases a liability $ 1, 500. Show Answer Correct Answer: C) Increases an asset $ 1, 500; decreases an asset $ 1, 500. 28. Hello! My name is AB and I want to join with you to do a specific business deal and when the deal is over the business will end. What type of business venture I am talking about? A) Company. B) Joint Venture. C) Partnership. D) Sole Proprietorship. Show Answer Correct Answer: B) Joint Venture. 29. Step 4 in the Accounting Cycle A) Trial Balance. B) Source Documents. C) Closing Entries. D) None of the Above. Show Answer Correct Answer: A) Trial Balance. 30. Trial balance is used to prepare ..... A) Control account. B) Bank statement. C) Cash book. D) Trading, profit and loss account. Show Answer Correct Answer: D) Trading, profit and loss account. ← 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