This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 76 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 76 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which type of asset has a non-physical form? A) Master asset. B) Tangible asset. C) Informal asset. D) Intangible asset. E) None of the above. Show Answer Correct Answer: D) Intangible asset. 2. What are the different types of financial ratios used in financial accounting? A) Debt ratios, equity ratios, and liability ratios. B) Cash ratios, inventory ratios, and receivables turnover ratios. C) Liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios. D) Income ratios, expense ratios, and asset ratios. Show Answer Correct Answer: C) Liquidity ratios, profitability ratios, solvency ratios, and efficiency ratios. 3. Accrual Concept implies accounting on cash basis A) False. B) True. Show Answer Correct Answer: A) False. 4. Under instalment payment system, ownership of goods A) Is transferred at the time of payment of last instalment. B) Is not transferred. C) Is transferred at the time of signing the contract. D) None of the above. Show Answer Correct Answer: C) Is transferred at the time of signing the contract. 5. Which of the following business organizations has the word "Enterprise" at the end of its name? A) Public company. B) Sole proprietorship. C) Private company. D) Partnership. Show Answer Correct Answer: B) Sole proprietorship. 6. An adjusting entry is not required for A) Outstanding checks. B) NSF checks. C) Bank service charges. D) Collection of a note by the bank. Show Answer Correct Answer: A) Outstanding checks. 7. Return inwards are A) Goods returned from customers. B) Goods received from suppliers. C) Goods returned to the supplier. D) Good sold to customers. Show Answer Correct Answer: A) Goods returned from customers. 8. CASH RECEIPTS FROM ROYALTIES AND COMMISSIONS ARE: A) CASH FLOWS FROM INVESTING ACTIVITIES. B) NOT REPORTED IN THE CASH FLOW STATEMENT. C) CASH FLOWS FROM OPERATING ACTIVITIES. D) CASH FLOWS FROM FINANCING ACTIVITIES. Show Answer Correct Answer: C) CASH FLOWS FROM OPERATING ACTIVITIES. 9. An expert says that the value of the management team of the company is worth well over a million dollars yet nothing is entered for it in the books. What accounting concept is being applied? A) Dual aspect. B) Substance over form. C) Materiality. D) Money measurement. Show Answer Correct Answer: D) Money measurement. 10. 25% of the Cost is A) 20% of Invoice. B) 30% of Invoice. C) 25% of Invoice. D) None of the Above. Show Answer Correct Answer: A) 20% of Invoice. 11. Which of the following statements best defines a liability? A) A liability is an obligation arising from a past transaction or event. B) A liability is a legally binding amount owed to a third party. C) A liability is an obligation arising from a past transaction or event which is expected to be settled by an outflow of economic benefits. D) A liability is anything which results in an outflow of economic benefits from an entity. Show Answer Correct Answer: C) A liability is an obligation arising from a past transaction or event which is expected to be settled by an outflow of economic benefits. 12. Cash at bank is a A) Current asset. B) Current liability. C) None of these. D) None of above. Show Answer Correct Answer: A) Current asset. 13. Which of the following is not an Internal User of Financial Accounting A) Investors. B) Employees. C) Managers. D) None of above. Show Answer Correct Answer: A) Investors. 14. The journal entry for when prepaid insurance expires: A) Debit Prepaid InsuranceCredit Cash. B) Debit Prepaid InsuranceCredit Insurance Expense. C) Debit Insurance ExpenseCredit Prepaid Insurance. D) Debit CashCredit Prepaid Insurance. Show Answer Correct Answer: C) Debit Insurance ExpenseCredit Prepaid Insurance. 15. The impact of technology on internal controls includes: A) Elimination of fraud. B) Elimination of the need for regular audits. C) Elimination of separation of duties. D) Reduced processing errors. Show Answer Correct Answer: D) Reduced processing errors. 16. Each of the following items affect the cash balance per books except A) Bank service charges. B) Outstanding checks. C) NSF checks. D) Notes collected by the bank. Show Answer Correct Answer: B) Outstanding checks. 17. Below are the reasons why companies merge, EXCEPT..... A) Time efficiency. B) Getting Loss. C) Cost Efficiency. D) Acquire Rights over Assets. Show Answer Correct Answer: B) Getting Loss. 18. The total compensation expense in a share option plan is measured at A) Intrinsic value of share options on date of grant. B) Intrinsic value of share options on the date of exercise. C) Fair value of share options on date of grant. D) Fair value of share options on date of exercise. Show Answer Correct Answer: C) Fair value of share options on date of grant. 19. Which of the following is a key process in financial accounting? A) Sales order processing. B) Accounts receivable accounting. C) Credit management. D) Income verification. E) All of the above. Show Answer Correct Answer: B) Accounts receivable accounting. 20. Identify the type of expenditure. Legal costs of collecting debts A) Capital. B) Revenue. Show Answer Correct Answer: B) Revenue. 21. A present obligation of an entity to transfer an economic resource as a result of past events is ..... A) Liability. B) Asset. C) Equity. D) Income. Show Answer Correct Answer: A) Liability. 22. The folio column is used for ..... A) Referencing. B) Type of transaction. C) Date. D) Value. Show Answer Correct Answer: A) Referencing. 23. Out of following items, which one is shown in the Receipts and Payments Account? A) Outstanding Salary. B) Depreciation. C) Life Membership Fees. D) Accrued Subscription. Show Answer Correct Answer: C) Life Membership Fees. 24. Which of these is not included as a separate item in the basic accounting equation? A) Owner's Equity. B) Assets. C) Revenues. D) Liabilities. Show Answer Correct Answer: C) Revenues. 25. Translate this account into Vietnamese: "Output value added tax" A) Value added tax deducted. B) Corporate income tax. C) Output VAT. D) None of above. Show Answer Correct Answer: C) Output VAT. 26. Companies experiencing seasonal variations in sales often choose a fiscal year corresponding to their ..... A) Natural business year. B) Interim year end. C) Quarterly year end. D) None of the above. Show Answer Correct Answer: A) Natural business year. 27. A company receives $ 500 of cash as an additional investment in the company by its owner, Mary Smith. The company's Cash account is increased and Mary Smith, Capital is increased.Should the $ 500 entry to Mary Smith, Capital be a debit? A) Yes. B) No. Show Answer Correct Answer: B) No. 28. Income received in advance must be treated as a liability A) True. B) False. Show Answer Correct Answer: A) True. 29. Yahoo, Inc. recognizes depreciation expense for a machine over the 2-year period during which that machine helps the company earn revenue. A) Matching. B) Revenue Recognition. C) Historical Cost. D) Full Disclosure. Show Answer Correct Answer: A) Matching. 30. When assets are acquired under Hire-purchase system, depreciation need not be provided as the vendor still continues to be the legal owner of such assets A) False. B) True. Show Answer Correct Answer: A) False. ← 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