This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 79 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 79 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to traditional classification of accounts, the type of consignment account is: A) Personal. B) Nominal. C) Valuation. D) Real. Show Answer Correct Answer: B) Nominal. 2. Double entry of cash sales A) Dr. CashCr. Sales. B) Dr. BankCr. Sales. C) Dr. SalesCr. Cash. D) Dr. SalesCr. Bank. Show Answer Correct Answer: A) Dr. CashCr. Sales. 3. Which of the following is NOT part of the fraud triangle? A) Nature. B) Rationalization. C) Opportunity. D) Pressure. Show Answer Correct Answer: A) Nature. 4. NON ADJUSTING EVENTS AFTER REPORTING PERIOD INCLUDE ALL OF THE FOLLOWING, EXCEPT A) ISSUE OF ORDINARY SHARES AFTER THE REPORTING PERIOD. B) BANKCRUPTCY OF A CUSTOMER AFTER REPORTING PERIOD. C) MAJOR PURCHASE OF AN ASSET AFTER THE REPORTING PERIOD. D) PLAN TO DISCONTINUE AN OPERATION AFTER THE REPORTING PERIOD. Show Answer Correct Answer: B) BANKCRUPTCY OF A CUSTOMER AFTER REPORTING PERIOD. 5. Realisation account is opened at the time of dissolution of the partnership firm. A) True. B) False. Show Answer Correct Answer: A) True. 6. Underwritting commission is debited to ..... A) Underwritting commission A/c. B) Underwriter's a/c. C) Share allotment a/c. D) Profit and loss a/c. Show Answer Correct Answer: A) Underwritting commission A/c. 7. Which of the following elements of a manufacturing account matches the definition below:The wages of those workers actually engaged in the manufacturing process (e.g. wages of a sewing machine operator) A) Profit on manufacture. B) Direct materials. C) Indirect wages. D) Direct wages. Show Answer Correct Answer: D) Direct wages. 8. When a business has two different sources of revenue, a separate income statement should be prepared for each kind of revenue. A) True. B) False. Show Answer Correct Answer: B) False. 9. Debit = Expenses, Assets, DrawingCredit = Owner's Equity, Income/Revenue, Liabilities Acronym for ..... ? A) What?. B) COIL DEAD. C) Accounting. D) DEAD COIL. Show Answer Correct Answer: D) DEAD COIL. 10. What are capital goods or capital in economics? A) Future sacrifices of economic benefits that a business owes to other entities. B) Durable produced goods used as productive inputs. C) Resources owned or controlled by a business. D) The total amount of income generated by the sale of goods and services. Show Answer Correct Answer: B) Durable produced goods used as productive inputs. 11. R.E.I.D is the acronym to help you remember which accounts are closed during the closing process. A) False. B) True. Show Answer Correct Answer: B) True. 12. A journal in which transactions are first recorded is: A) A revenue account. B) A ledger. C) The cash ledger. D) A book of original entry. E) A book of final entry. Show Answer Correct Answer: D) A book of original entry. 13. According to GAAP, what ratio must be reported on the financial statements in the notes to the statements? A) Earnings per share ratio. B) Return on equity ratio. C) Net profit margin ratio. D) Current ratio. Show Answer Correct Answer: A) Earnings per share ratio. 14. What should be referenced in following the correct and widely accepted procedures and standards? A) FOIA. B) GAAP. C) FHA. D) IRS. Show Answer Correct Answer: B) GAAP. 15. On January 2 2017, PT. Jaya Sakti obtained patent rights for its products through research and development and registered its products with the Patent Office. After that PT. Jaya Sakti makes a deed of establishment until the establishment is approved by the authorities. Of the total costs, which is included in the acquisition cost?..... A) Trial fee. B) Patent registration. C) Legal fees. D) Development costs. E) Patent tax. Show Answer Correct Answer: E) Patent tax. 16. Which of this column is not included in trial balance? A) Debit side. B) Particulars. C) Credit side. D) Folio. Show Answer Correct Answer: D) Folio. 17. In reference to the determination of goodwill impairment, which of the following statements is correct? A) The goodwill impairment test under FASB 142 is a three-step process. B) If the reporting unit's fair value exceeds its carrying value, goodwill is unimpaired. C) Under FASB 142, firms must first compare carrying values (book values) at the firm level. D) All of the above are correct. Show Answer Correct Answer: B) If the reporting unit's fair value exceeds its carrying value, goodwill is unimpaired. 18. When accounting for a business combination a contingent liability is recognised if: A) It is a present obligation that has failed to meet the recognition criteria. B) It is a possible obligation and it is probable that it will occur. C) Its fair value can be measured reliably. D) It is probable that an outflow of resources may occur in order to settle the obligation. Show Answer Correct Answer: C) Its fair value can be measured reliably. 19. Prepaid expense is deducted from ..... and it is treated as ..... A) Asset, Liability. B) Income, asset. C) Expenses, asset. D) Expenses, income. Show Answer Correct Answer: C) Expenses, asset. 20. What is the scope of financial accounting? A) Narrow, focusing on specific departments and cost centers. B) Broad, consolidating results of all business units. C) Limited to financial information only. D) No specific scope. Show Answer Correct Answer: B) Broad, consolidating results of all business units. 21. What is the correct formula for straight line method A) Cost-Residual value. B) Cost-Residual value/ Carrying amount. C) Cost-Accumulated depreciation. D) Cost-Residual value/ Useful life of the asset. Show Answer Correct Answer: D) Cost-Residual value/ Useful life of the asset. 22. All of the following are internal users of accounting information except: A) Manager. B) Employees. C) Supplier. D) Owners. Show Answer Correct Answer: C) Supplier. 23. Transactions and events that cannot be measured in money terms are not recorded in the books of accounts. It is due to Money Measurement Concept. A) False. B) True. Show Answer Correct Answer: B) True. 24. The responsibility for staffing the organisation for public sector is under the purview of A) Public Service Department. B) Malaysian Administration Modernisation Planning Unit. C) Ministry of Finance. D) Ministry of Transport. Show Answer Correct Answer: A) Public Service Department. 25. Guidelines that accountants consistently use to prepare financial statements, making multiple statements comparable to one another. A) Generally Accepted Accounting Principles (GAAP). B) Generally Applied Accounting Principles (GAAP). C) Generally Accepted and Applied Accounting Principles (GAAAAP). D) General Accounting Principles (GAP). Show Answer Correct Answer: A) Generally Accepted Accounting Principles (GAAP). 26. Accruing Uncollected Revenue What would be the effect on assets? A) Assets would increase. B) Assets would decrease. C) Assets would remain unchanged. D) None of the above. Show Answer Correct Answer: A) Assets would increase. 27. The process of identifying, classifying, recording and communicating business transaction is called A) Accountancy. B) Bookkeeping. C) Accounting. D) Double entry. Show Answer Correct Answer: C) Accounting. 28. Balance sheet is an example of ..... A) Interpreting. B) Recording. C) Classifying. D) Summarizing. Show Answer Correct Answer: A) Interpreting. 29. The formula for calculating the net income ratio is: A) Net income divided by total sales. B) Total sales divided by total expenses. C) Total sales minus total expenses divided by net income. D) None of these. Show Answer Correct Answer: A) Net income divided by total sales. 30. Which of the following is current asset A) Land and building. B) Machinery. C) Cash. D) Furniture. Show Answer Correct Answer: C) Cash. ← 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