This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 87 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 87 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Step 1 in the Accounting Cycle A) Closing Entries. B) Adjusted Trial Balance. C) Source Documents. D) Journal. Show Answer Correct Answer: C) Source Documents. 2. Sales account and account sales are synonymous terms. A) True. B) False. Show Answer Correct Answer: B) False. 3. Which of the following is not a direct tax? A) Income tax. B) Wealth tax. C) Sales tax. D) Commercial tax. Show Answer Correct Answer: C) Sales tax. 4. The Process of entering all transaction from the Journal to Ledger is called A) Posting. B) Entry. C) Accounting. D) None of the above. Show Answer Correct Answer: A) Posting. 5. When a company receives cash from a customer for a prior sale, the transaction A) Increases cash, decreases accounts receivable. B) Increases accounts receivable, decreases cash. C) Increases both cash and accounts receivable. D) Decreases both cash and accounts receivable. Show Answer Correct Answer: A) Increases cash, decreases accounts receivable. 6. Jeff's Construction, LLC bought a piece of equipment in 2001 for P 10, 000. Today this piece of equipment is only worth P 2, 000. Jeff would still report the equipment at its purchase price of P 10, 000, less depreciation, even though its current fair market value is only P 2, 000. A) Accrual Principle. B) Business Entity. C) Adequate Disclosure Principle. D) Historical Principle. Show Answer Correct Answer: D) Historical Principle. 7. On December 2 2018, PT M2M received PD Ngentak's receivables amounting to IDR 2, 000, 000, and it was estimated that 0.1% of the receivables could not be collected. The above transaction uses the method..... A) Direct Receivables Write-Off. B) Write-off of Installment Receivables. C) Write-off of Reserve Receivables. D) Balance Sheet Receivables Write-Off. Show Answer Correct Answer: C) Write-off of Reserve Receivables. 8. What is the "Language of the any Business A) Ledger. B) Balance sheet. C) Financial statement. D) Accounting. Show Answer Correct Answer: D) Accounting. 9. Given the following, what is the amount of Capital? Premises $ 20, 000; Inventory $ 8, 500; Cash $ 100, Trade payables $ 3, 000; Loan from A. Adams $ 4, 000. A) $ 21, 600. B) $ 21, 400. C) $ 21, 100. D) $ 32, 400. Show Answer Correct Answer: A) $ 21, 600. 10. Which account is used to ascertain the operating profit or loss of each Department. A) Departmental Profit and Loss A/C. B) Departmental Trading A/C. C) General Trading A/C. D) General Profit and Loss A/C. Show Answer Correct Answer: A) Departmental Profit and Loss A/C. 11. Accounting Concepts are A) Business entity concept. B) Going concern concept. C) Monetary concept. D) Cost concept. E) All of the above. Show Answer Correct Answer: E) All of the above. 12. In the working paper preparation procedure, the real account balance is transferred to a column A) Adjusted trial balance. B) Income statement. C) Balance sheet. D) Trial balance. Show Answer Correct Answer: C) Balance sheet. 13. What is income in finance? A) Future sacrifices of economic benefits that a business owes to other entities. B) Durable produced goods used as productive inputs. C) Ownership interest in property offset by debts or liabilities. D) Consumption and saving opportunity gained by an entity within a specified timeframe. Show Answer Correct Answer: D) Consumption and saving opportunity gained by an entity within a specified timeframe. 14. Under the provisions of which enactment, banks are regulated and controlled in India? A) Banking Regulation Act, 1949. B) Companies Act, 2013. C) Reserve Bank of India Act, 1935. D) None of these. Show Answer Correct Answer: A) Banking Regulation Act, 1949. 15. All of the following are examples of Assets EXCEPT A) Cash at the Bank. B) Cash in Hand. C) Building. D) Creditors. Show Answer Correct Answer: D) Creditors. 16. Which of the following statements are correct? A) Subscribed capital is that part of capital which is offered to the public for subscription. B) Called-up-capital is that part of the subscribed capital that has been paid up. C) Paid-up-capital = called-up-capital-calls in arrear. D) Issued capital is that part of authorized capital which is applied by the public and allotted by company. Show Answer Correct Answer: C) Paid-up-capital = called-up-capital-calls in arrear. 17. True or False:Principle of Regularity and Principle of Consistency is the same? A) False. B) True. Show Answer Correct Answer: B) True. 18. The most basic legal form of business. A) Sole Proprietorship. B) Stockholders. C) Partnership. D) Corporation. Show Answer Correct Answer: A) Sole Proprietorship. 19. All the following are features of partnership account except A) Current account. B) Balance sheet. C) Appropriation account. D) Debtors account. Show Answer Correct Answer: D) Debtors account. 20. If assets increase by 20, 000, which one of the following also could happen? A) Unearned revenue decreases by $ 20, 000. B) Withdrawls increase by $ 20, 000. C) Notes payable increases by $ 20, 000. D) Prepaid insurance increases by $ 20, 000. Show Answer Correct Answer: C) Notes payable increases by $ 20, 000. 21. Accounting is an art of A) Recording. B) Interpreting. C) Summarising. D) All the above. Show Answer Correct Answer: D) All the above. 22. For accounting purposes the "business" is treated as a separate entity (Individual) from the proprietor (s). A) Matching Concept. B) Money Measurement. C) Periodicity Concept. D) Business Entity. Show Answer Correct Answer: D) Business Entity. 23. ALL OF THE FOLLOWING FINANCIAL ASSETS ARE SUBJECT TO IMPAIRMENT, EXCEPT: A) LOAN RECEIVABLE AT AMORTIZED COST. B) BOND INVESTMENT AT AMORTIZED COST. C) BOND INVESTMENT AT FVPL. D) BOND INVESTMENT AT FVOCI. Show Answer Correct Answer: C) BOND INVESTMENT AT FVPL. 24. During 2017, Susi sold goods costing $ 500 to its subsidiary, Kiki, at a mark-up of 20%. Kiki had had $ 100 of these goods on hand at Dec 31, 2017. What is the elimination worksheet entry to eliminate intercompany sales? A) Dr. Cost of sales $ 100Cr. Inventory $ 100. B) Dr. Sales $ 625Cr. Cost of sales $ 625. C) Dr. Sales $ 20Cr. Cost of sales $ 20. D) Dr. Cost of sales $ 25Cr. Inventory $ 25. E) Dr. Sales $ 600Cr. Cost of sales $ 600. Show Answer Correct Answer: E) Dr. Sales $ 600Cr. Cost of sales $ 600. 25. Find the sales ratio18, 000:12, 000:27, 000 A) 9:3:6. B) 2:3:4. C) 6:3:9. D) 3:9:6. Show Answer Correct Answer: C) 6:3:9. 26. INVENTORY COST DOES NOT INCLUDE: A) REBATES. B) IMPORT DUTIES. C) PURCHASE PRICE. D) FREIGHT. Show Answer Correct Answer: A) REBATES. 27. The accountant's word to indicate that an entry will be recorded on the right-side of an account is ..... A) Credit. B) Debit. Show Answer Correct Answer: A) Credit. 28. Abnormal wastages should be included in the cost of inventories as per AS-2. A) False. B) True. Show Answer Correct Answer: A) False. 29. On May 20 2017, PT Usaha Bersama purchased a vehicle for IDR 220, 000, 000.00, VAT 10%. The costs incurred in connection with the purchase of the vehicle are transfer fees amounting to IDR 2, 500, 000.00. The amount of vehicle at cost is..... A) Rp 244.500.000, 00. B) Rp 220.000.000, 00. C) Rp 222.500.000, 00. D) Rp 242.000.000, 00. Show Answer Correct Answer: A) Rp 244.500.000, 00. 30. What does R.W.1 mean? A) Journal page 1. B) Fast. C) Be careful. D) Period book. Show Answer Correct Answer: A) Journal page 1. ← 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