This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 75 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 75 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Mary has some snacks; she intends to use the snacks to start her business operation as Mary's Snack shop. Which accounting equation fits Mary's business? A) Assets = Liabilities. B) Liabilities = Assets. C) Assets = Capital + Liabilities. D) Assets = Capital. Show Answer Correct Answer: D) Assets = Capital. 2. Recording of Transactions is ..... A) Final Accounts. B) Book Keeping. C) Journal entries. D) Cash Book entries. Show Answer Correct Answer: B) Book Keeping. 3. On December 1 2018, Mr. Azra sold 10 sacks of rice Rp. 500, 000 to Mr. Hymawan with conditions 2/15, n/60. The CORRECT journal is..... A) Accounts Receivable (D) and Supplies (K) amounting to IDR 500, 000. B) Accounts Receivable (D) and Sales (K) amounting to IDR 500, 000. C) Sales (K) and Accounts Receivable (K) amounting to IDR 500, 000. D) Sales (D) and Accounts Payable (K) amounting to IDR 500, 000. Show Answer Correct Answer: B) Accounts Receivable (D) and Sales (K) amounting to IDR 500, 000. 4. THE COST OF INVENTORY SHOULD NOT INCLUDE A) PURCHASE PRICE. B) IMPORT DUTIES. C) ABNORMAL AMOUNT OF WASTED MATERIALS. D) FIXED AND VARIABLE PRODUCTION OVERHEAD. Show Answer Correct Answer: C) ABNORMAL AMOUNT OF WASTED MATERIALS. 5. Mr. Nat has the following personal assets and liabilities:Cash 10, 000 baht, bank deposit 5, 000 baht, car 200, 000 baht, house 300, 000 baht, land 100, 000 baht, borrowed money from the bank 120, 000 baht. I would like to know how much total debt Mr. Nat has. A) 495, 000 baht. B) 120, 000 baht. C) 735, 000 baht. D) 615, 000 baht. Show Answer Correct Answer: B) 120, 000 baht. 6. Which statement below is incorrect regarding cash basis revenue recognition? A) Cash basis accounting considers only cash received as a result of the earnings process to be revenue. B) A company recognizes revenue only when it receives the associated cash with the transaction. C) Under cash basis accounting, we recognize revenue only when we earn revenues. D) When a business borrows money, the cash it receives is a liability, not a revenue. Show Answer Correct Answer: C) Under cash basis accounting, we recognize revenue only when we earn revenues. 7. There are both ..... and ..... users. A) Owners and friendly. B) Internal and non external. C) Internal and external. D) Non internal and external. Show Answer Correct Answer: C) Internal and external. 8. Which of the following statements is true of financial accountants? A) They help managers make business decisions. B) They are often managers or supervisors. C) They are required to follow rigid standards. D) They compile reports only as they are needed. Show Answer Correct Answer: C) They are required to follow rigid standards. 9. Minority interest includes A) Share in share capital. B) Share in capital profit. C) Share in revenue profit. D) All of the above. Show Answer Correct Answer: D) All of the above. 10. What columns of a company's work sheet are used to calculate a company's Net Income? A) IS Credit (Revenue)-IS Debit (Expenses). B) IS Credit (Revenue)-BS Debit (Expenses). C) BS Debit (Revenue)-IS Credit (Expenses). D) IS Debit (Expenses)-IS Credit (Revenue). Show Answer Correct Answer: A) IS Credit (Revenue)-IS Debit (Expenses). 11. Which of the following is the correct definition of an adjusting event after the reporting period? A) An event that occurs between the reporting date and the date on which the financial statements are authorised for issue that provides further evidence of conditions that existed at the reporting date. B) An event that occurs between the reporting date and the date on which the financial statements are authorised for issue that provides evidence of conditions that arose subsequent to the reporting date. C) An event that occurs after the date the financial statements are authorised for issue that provides further evidence of conditions that existed at the reporting date. D) An event that occurs after the date the financial statements are authorised for issue that provides evidence of conditions that arose subsequent to the reporting date. Show Answer Correct Answer: A) An event that occurs between the reporting date and the date on which the financial statements are authorised for issue that provides further evidence of conditions that existed at the reporting date. 12. Mr Mardi withdrew a note of IDR 3, 600, 000 with 60 day interest due July 5 2018, 15% interest. On May 21 2018, the money order was discounted to BCA at a 20% discount. The amount of the note discount is..... A) Rp 92.000. B) Rp 92.250. C) Rp 94.300. D) Rp 90.200. Show Answer Correct Answer: B) Rp 92.250. 13. On December 1, 20x1, Entity B purchased $ 4, 500 supplies and recorded as an asset. On December 31, 20x1, Entity B checked supplies and found $ 1, 200 in the inventory. Prepare journal entries on the following dates:December 31, 20x1 A) Supplies expenses (D) 3300Cash (K) 3300. B) Supplies expenses (D) 3300Supplies (K) 3300. C) Supplies expenses (D) 4500Supplies (K) 4500. D) Supplies expenses (D) 4500Cash (K) 4500. Show Answer Correct Answer: B) Supplies expenses (D) 3300Supplies (K) 3300. 14. Salaries are hourly wages paid to employees A) False. B) True. Show Answer Correct Answer: A) False. 15. Debit balance of real account shows A) Liability. B) Assests. C) Income. D) Profit. Show Answer Correct Answer: B) Assests. 16. Unearned revenue is classified as A) A revenue account. B) A contra-revenue account. C) A liability account. D) An asset account. Show Answer Correct Answer: C) A liability account. 17. Contracts or government grants that give the owner special rights. A) Patents. B) Copyrights. C) Trademarks. D) Franchises and licenses. Show Answer Correct Answer: D) Franchises and licenses. 18. The cash price or market price of the asset handed over or acquired, whichever is lower, to obtain natural resources and prepare them according to the purpose of owning the asset is called..... A) Full purchase price. B) Amortization of natural resource fixed assets. C) Depletion of fixed assets of natural resources. D) The acquisition price of a natural resource. E) Book value of natural resources. Show Answer Correct Answer: D) The acquisition price of a natural resource. 19. Financial ratios that tell how much of each dollar of sales, assets, and owner's investments resulted in net profit. A) Liquidity ratios. B) Profitability ratios. C) Efficiency ratios. D) Leverage ratios. Show Answer Correct Answer: B) Profitability ratios. 20. Partners current accounts are opened when their capital accounts are: A) Fixed and Fluctuating both. B) Fixed. C) None of these. D) Fluctuating. Show Answer Correct Answer: B) Fixed. 21. Financial accountancy is governed by ..... A) Local standards only. B) International standards. C) Local as well as international accounting standards. D) Company's internal top management only. Show Answer Correct Answer: C) Local as well as international accounting standards. 22. Pension funds and banks regularly invest in debt and stocksecurities to: A) House excess cash until needed. B) Avoid a takeover by disgruntled investors. C) Generate earnings. D) Meet strategic goals. Show Answer Correct Answer: C) Generate earnings. 23. Legacies are generally A) Treated as income. B) Capitalized and taken to balance sheet. C) Treated as expenditure. D) Treated as Revenue and payments. Show Answer Correct Answer: B) Capitalized and taken to balance sheet. 24. Which of following best describes what an accounting department does for a business? A) Considers what new technology is best for the business at this time. B) Delegates decisions to another department to avoid being blamed for mistakes. C) To determine the legality of hiring one candidate over another. D) To see whether the company can afford purchases. Show Answer Correct Answer: D) To see whether the company can afford purchases. 25. Financial Statement that shows final financial position of the company as on the last day of the year is called ..... A) Trading Account. B) Balance Sheet. C) Profit & Loss Account. D) Income Statement. Show Answer Correct Answer: B) Balance Sheet. 26. Which account of the following will be credited on giving of goods in donation- A) Donation A/c. B) Purchases A/c. C) Cash A/c. D) Sales A/c. Show Answer Correct Answer: B) Purchases A/c. 27. Which of the following information is obtained from a completed daysheet? A) Accounts receivable data. B) Annual gross income of a medical practice. C) Credit bureau accounts. D) Amount in a petty cash fund. Show Answer Correct Answer: A) Accounts receivable data. 28. Costs used to earn (generate) revenues. A) Liabilities. B) Assets. C) Revenue. D) Expenses. Show Answer Correct Answer: D) Expenses. 29. Behavioural is an observation of the accountants or the users of the informations A) True. B) False. Show Answer Correct Answer: B) False. 30. Accounting is an information and measurement system that does all the following except: A) Communicates business activities. B) Records business activities. C) Identifies business activities. D) Eliminates the need for interpreting financial data. E) Helps people make better decisions. Show Answer Correct Answer: D) Eliminates the need for interpreting financial data. ← 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