This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 88 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 88 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Manufacturing firms like to compare their cost of manufacture with the wholesale cost of their output. Why do they do this? A) To report to managers on the quality of their products. B) To apportion costs to different areas of the business. C) To investigate how many units are required to breakeven. D) To see whether it has been more or less profitable to manufacture the products rather than purchase them. Show Answer Correct Answer: D) To see whether it has been more or less profitable to manufacture the products rather than purchase them. 2. What is the journal entry to pay the tax liabilities of employee income tax, Medicare, and Social Security? A) Debit payroll Deduction Expense, Medicare Payment, Social Security Payment:Credit Cash. B) Debit Business Tax Payable, Medicare Payment, Payroll Expense; Credit Capital. C) Debit Cash; Credit employee income tax payable, Medicare payable, social security payable. D) Debit employee Income tax payable, Medicare payable, social security payable, credit cash. Show Answer Correct Answer: D) Debit employee Income tax payable, Medicare payable, social security payable, credit cash. 3. Trial Balance would not disclose error of omission. A) False. B) True. Show Answer Correct Answer: B) True. 4. A cash deposit made by business appears on the bank statement as ..... balance. A) Expenses. B) Liabilities. C) Debit. D) Credit. Show Answer Correct Answer: D) Credit. 5. Arrange the following items in the order of the accounting cycle:1. record transactions into the book of original entry2. prepare financial statements3. make period-end adjustments4. post transactions to ledger A) 1432. B) 1423. C) 4123. D) 4132. Show Answer Correct Answer: A) 1432. 6. PD Markisa has a note worth IDR 12, 000, 000 with a term of 90 days and 8% interest. The note was issued on August 5 2018. Based on this data, the maturity date of the note is..... A) 3 November 2018. B) 2 November 2018. C) 4 November 2018. D) 5 November 2018. E) October 31, 2018. Show Answer Correct Answer: A) 3 November 2018. 7. Trial balance can be prepared A) At any time of year. B) At the end of year. C) In the beginning of year. D) None of above. Show Answer Correct Answer: A) At any time of year. 8. Which of the following documents authorizes the purchase transaction? A) Purchase order. B) Purchase requisition. C) Invoice or bill from supplier. D) Credit memo from supplier. Show Answer Correct Answer: C) Invoice or bill from supplier. 9. PREDICTIVE AND CONFIRMATORY VALUE ARE THE INGREDIENTS OF: A) UNDERSTABILITY. B) FAITHFUL REPRESENTATION. C) RELEVANCE. D) COMPLETENESS. Show Answer Correct Answer: C) RELEVANCE. 10. It checks the arithmetical accuracy of ledger accounts. A) Final Accounts. B) Ledger. C) Account. D) Trial Balance. Show Answer Correct Answer: D) Trial Balance. 11. Which of the following is not an internal user of accounting information? A) The bank. B) Employees. C) Owners. D) Managers. Show Answer Correct Answer: A) The bank. 12. Which of the following is an asset according to the definition in the Conceptual framework? A) Factory buildings. B) Amounts owed to tax authorities. C) Bank overdraft. D) Payables. Show Answer Correct Answer: A) Factory buildings. 13. Which type of business organization has the following characteristics?is owned by 2 to 20 personhas unlimited liabilityhas no legal obligation to audit the accounts A) Sole trader. B) Partnership. C) Company. D) None of above. Show Answer Correct Answer: B) Partnership. 14. How can shares be issued? A) At par. B) At premium. C) At discount/reduction. D) On all of the following. Show Answer Correct Answer: D) On all of the following. 15. Which form of business forms a separate legal entity? A) Sole proprietorship. B) Partnership. C) Corporation. D) All of the above. Show Answer Correct Answer: C) Corporation. 16. Hire purchase price includes A) Cash price and interest. B) Cash price and down payment. C) Down payment and interest. D) Total Price. Show Answer Correct Answer: A) Cash price and interest. 17. Which process is used to manage money owed by customers for goods and services purchased from the company? A) General ledger accounting. B) Accounts receivable accounting. C) Fixed asset accounting. D) Bank ledger accounting. E) All of the above. Show Answer Correct Answer: B) Accounts receivable accounting. 18. Thornton's Department Store has a 30%-off sale this week. What is the sale price for a pair of $ 24.00 jeans? A) $ 2.40. B) $ 21.60. C) $ 7.20. D) $ 16.80. Show Answer Correct Answer: D) $ 16.80. 19. Outstanding checks refer to checks that have been: A) Issued by the bank. B) Written and not yetrecorded in the company books. C) Written, recorded on thecompany books, sent to the payee, but not yet paid by the bank. D) Written with insufficient funds. Show Answer Correct Answer: C) Written, recorded on thecompany books, sent to the payee, but not yet paid by the bank. 20. A form requesting that a vendor sell merchandise to a business is called A) Stock purchase. B) Purchase order. C) Articles of incorporation. D) Purchase invoice. Show Answer Correct Answer: B) Purchase order. 21. Which of the following is found in a sales ledger account? A) Credit purchases. B) Bills payable. C) Discount received. D) Discount allowed. Show Answer Correct Answer: D) Discount allowed. 22. Journal Entry for Selling Furniture in Cash is? A) Cash A/C (Debit)-To Furniture A/C (Credit). B) Furniture A/C (Debit)-To Cash A/C (Credit). C) Sales A/c (Debit)-To Furniture A/c(Credit). D) Cash A/c (Debit)-To Sales A/c(Credit). Show Answer Correct Answer: A) Cash A/C (Debit)-To Furniture A/C (Credit). 23. Non profit organization are those organization which do not have A) Balancing motive. B) Profit motive. C) Loss motive. D) None of the above. Show Answer Correct Answer: B) Profit motive. 24. Step 3 in the Accounting Cycle. A) Closing Entries. B) Ledger. C) Trial Balance. D) Source Documents. Show Answer Correct Answer: B) Ledger. 25. The first step in the recording process is to A) Prepare financial statements. B) Post to a journal. C) Prepare a trial balance. D) Analyze each transaction for its effect on the accounts. Show Answer Correct Answer: D) Analyze each transaction for its effect on the accounts. 26. An increase in economic benefits during the period of time in the form of inflows. A) Liabilities. B) Income. C) Expenses. D) None of above. Show Answer Correct Answer: B) Income. 27. Which account is least likely to appear in an adjusted journal entry? A) Salaries payable. B) Property tax expense. C) Cash. D) Interest receivable. Show Answer Correct Answer: C) Cash. 28. Accounting is an information system for business A) True. B) False. Show Answer Correct Answer: A) True. 29. The purpose of adjusting entries is to: A) Adjust the Retained Earnings account for the revenue, expense, and dividends recorded during the accounting period. B) Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transactions. C) Apply the realization principle and the matching principle to transactions affecting two or more accounting periods. D) Prepare revenue and expense accounts for recording the transactions of the next accounting period. Show Answer Correct Answer: C) Apply the realization principle and the matching principle to transactions affecting two or more accounting periods. 30. Business transactions are kept completely separate from its owners A) Monetary Unit Principle. B) Distinct Entity Principle. C) Time Period Principle. D) Cost Principle. Show Answer Correct Answer: B) Distinct Entity Principle. ← 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