This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 83 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 83 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Direct material + direct expenses is ..... A) Prime cost. B) Total cost. C) Conversion cost. D) Overhead cost. Show Answer Correct Answer: A) Prime cost. 2. Mrs. Ray is buying some groceries. They total to $ 35.50. Sales tax is 4.5%. When she goes to pay, how much will she owe? A) $ 51.48. B) $ 1.60. C) $ 37.10. D) $ 40.00. Show Answer Correct Answer: C) $ 37.10. 3. ..... is a specialized branch of accounting that keeps track of a company's financial transactions. A) Corporate accounting. B) Financial accounting. C) Management accounting. D) Cost accounting. Show Answer Correct Answer: B) Financial accounting. 4. Pick the Non-current asset. A) Receivable. B) Inventory. C) Building. D) Cash. Show Answer Correct Answer: C) Building. 5. If no agreement regarding the responsibility of loss exists between consignor and consignee, the loss of goods resulting from accident, fire or theft etc. would be born by the: A) Both consignor and consignee in the ratio of 1:1. B) Consignor only. C) Consignee only. D) Carrier of goods only. Show Answer Correct Answer: B) Consignor only. 6. Receipts and Payments Account is A) Personal Account. B) Real Account. C) Nominal Account. D) Gross and Net Profit. Show Answer Correct Answer: B) Real Account. 7. On December 1, 20x1, Entity D signed a new insurance contract and paid $ 6, 300 insurance premium for a three-month period from December 1 20x1 to February 20x2. Prepare journal entries on the following dates:December 31, 20x1 A) Insurance expense (D) 4200 Prepaid insurance (K) 4200. B) Insurance expense (D) 3600 Prepaid insurance (K) 3600. C) Insurance expense (D) 6300 Prepaid insurance (K) 6300. D) Insurance expense (D) 2100 Prepaid insurance (K) 2100. Show Answer Correct Answer: D) Insurance expense (D) 2100 Prepaid insurance (K) 2100. 8. If total liabilities decreased by $ 60, 000 and owner's equity increased by $ 30, 000 during a period of time, then total assets must change by what amount and direction during that same period? A) $ 90, 000 increase. B) $ 30, 000 increase. C) $ 90, 000 decrease. D) $ 30, 000 decrease. Show Answer Correct Answer: D) $ 30, 000 decrease. 9. The meaning of the acquisition price of a fixed asset is..... A) Prices stated in the price list. B) Purchase price plus all costs incurred to enable the asset to operate. C) Purchase price/price from the seller. D) The agreed price between the buyer and seller. Show Answer Correct Answer: B) Purchase price plus all costs incurred to enable the asset to operate. 10. Realisation account is a real account. A) False. B) True. Show Answer Correct Answer: A) False. 11. A transaction is omitted completely from the books so that there is no debit and credit entry of the transaction. This is an example of what errors? A) Commission. B) Reverse. C) Omission. D) Principle. Show Answer Correct Answer: C) Omission. 12. During 2019, an entity introduced a new product carrying a two-year warranty against defects. The estimated warranty costs related to peso sales are 4% within 12 months following sale and 6% in the second 12 months following sale. The entity reported sales of P5, 000, 000 for 2019 and P6, 000, 000 for 2020. The actual expenditures incurred and paid amounted to P150, 000 for 2019 and P550, 000 for 2020. What is the estimated warranty liability on December 31, 2020? A) 200, 000. B) 400, 000. C) 260, 000. D) 100, 000. Show Answer Correct Answer: B) 400, 000. 13. The accrual basis of accounting records revenues when they are: A) Readily available for use. B) Contracted. C) Earned. D) Collected. Show Answer Correct Answer: C) Earned. 14. The first financial reporting regulation in Malaysia can be traced back only as far as 1940 when the Companies Ordinance (amendments) of 1940 was established. A) False. B) True. Show Answer Correct Answer: B) True. 15. Credit side balance in Income & Expenditure Account reveals: A) Excess of income over expenditure. B) Excess of cash payments over receipt. C) Excess of cash receipts overpayments. D) Excess of expenditure over income. Show Answer Correct Answer: A) Excess of income over expenditure. 16. Net income RM 100, 000Depreciation RM 10, 000Increase in account receivable RM 30, 000Decrease in account payable RM 15, 000 Based on the above information, what amount will the corporation report as Net Cash Provided by Operating Activities on the cash flow statement? A) RM 105, 000. B) RM 65, 000. C) RM 155, 000. D) RM 125, 000. Show Answer Correct Answer: B) RM 65, 000. 17. Amounts owed that are presented by a formal contract: A) Trade accounts payable. B) Accounts payable. C) Notes payable. D) All of the above. Show Answer Correct Answer: C) Notes payable. 18. Who is the father of modern finance? A) Agastya. B) William Shakespeare. C) Luca Pacioli. D) Eugene F. Fama. Show Answer Correct Answer: D) Eugene F. Fama. 19. What is the main objective of preparing the financial statements? A) To show the value of the shares in the company. B) To provide information on financial performance and financial position of a business. C) To help management hiring additional work forces. D) To show managers the results of their departments. Show Answer Correct Answer: B) To provide information on financial performance and financial position of a business. 20. At April 30, Dorale Company has the following bank information:cash balance per bank $ 2, 500; outstanding checks $ 385; deposits in transit $ 260; credit memo for interest $ 50; bank service charge $ 15. What is Dorale's adjusted cash balance on April 30? A) $ 2, 375. B) $ 2, 500. C) $ 2, 440. D) $ 2, 660. Show Answer Correct Answer: A) $ 2, 375. 21. When Share Application Money is received, ..... account is credited A) Cash Account. B) Share Application Account. C) Share Capital Account. D) None of the Above. Show Answer Correct Answer: B) Share Application Account. 22. The statement that outlines the income for the period and the expenses incurred in the period. A) Statement of Cash Flows. B) Statement of Profit and Loss. C) Statement of Financial Position. D) Balance Sheet. Show Answer Correct Answer: B) Statement of Profit and Loss. 23. The influence of environmental factors such as social, political, economic, ..... in the development of accounting and Malaysia's recent move towards the adoption of International Financial Reporting Standards (IFRS). A) Religion and race. B) Macro and micro. C) Size of company and audit firm. D) Legal and cultural. Show Answer Correct Answer: D) Legal and cultural. 24. Recorded expenses include: A) Product costs and selling costs. B) Product costs and period costs. C) Product costs, selling costs and period costs. D) Period costs and selling costs. Show Answer Correct Answer: B) Product costs and period costs. 25. Which one of the following is not an external user of accounting information? A) Manager. B) Customer. C) Creditor. D) Investor. Show Answer Correct Answer: A) Manager. 26. An accrued expense is an expense that A) Has been incurred but has not been paid. B) Has been paid but has not been incurred. C) Has been incurred for which payment has been made in installments. D) Will never be paid. Show Answer Correct Answer: A) Has been incurred but has not been paid. 27. When a Liability is reduced or decreased, it is recorded on the: A) Left or credit side of the account. B) Left or debit side of the account. C) Right or credit side of the account. D) Right or debit side of the account. Show Answer Correct Answer: B) Left or debit side of the account. 28. Purchased furniture from M/s. Mohanlal & Sons., in the journal entry for this transaction M/s Mohanlal & Sons A/c will be A) Debited. B) Credited. C) Neither Debited nor credited. D) None of the above. Show Answer Correct Answer: B) Credited. 29. Financial reports that describe cash inflows and outflows during a certain period are the definition of A) Cash Report. B) Financial statements. C) Cash flow statement. D) Cash Flow Report. Show Answer Correct Answer: C) Cash flow statement. 30. Rely on the study of the behaviour of accountants and non-accountants as they are influenced by accounting functions and reports. A) Normative. B) Behavioural. C) Pragmatic. D) Taxation. Show Answer Correct Answer: B) Behavioural. ← 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