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Financial Accounting Quiz 9 (30 MCQs)

Quiz Instructions

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1. If the month-end bank statement shows a balance of $ 58, 000, outstanding checks are $ 15, 000, a deposit of $ 7, 000 was in transit at month end, and a check for $ 600 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
2. Number Processing Program
3. A decrease in Notes Payable is recorded by a ..... entry in the account.
4. The value of assets received or receivable as result of selling goods or services to customers is called:
5. Honour of a Bill means that the acceptor refuses to honour his commitment on due date and for this, payment of the bill on presentation does not take place.
6. Credit purchase of Plant & Machinery will be recorded in
7. Profit or loss made on sale of old assets is recorded in
8. Given the following data:Net Sales of P160, 000; Sales returns of P15, 000; Cost of Goods available for sale of 120, 000; Purchase returns of P20, 000. How much is the cost of goods sold if Gross profit is 30% of Net Sales.
9. Which of the following is related to Scientific system of maintaining account?
10. Which of the following material events after the reporting period and before the financial statements are approved by the directors should be adjusted for in those financial statements? 1-A valuation of property providing evidence of impairment in value at the reporting period 2-Sale of inventory held at the end of the reporting period for less than cost 3-Discovery of fraud or error affecting the financial statements 4-The insolvency of a customer with a debt owing at the end of the reporting period which is still outstanding
11. Switching accounting principles every year would violate the
12. Net income was $ 850, 000. Beginning and ending assets were $ 8, 500, 000 and $ 9, 600, 000, respectively. What was the return on assets (ROA)?
13. The current ratio is also known as the:
14. An entity purchased a property 10 years ago at a cost of $ 200, 000 and have been depreciating it at a rate of 2.5% per annum, on the straight-line basis. The entity have had the property professionally revalued at $ 250, 000What is the annual depreciation after the revaluation in respect of this property
15. The person who supplies goods to the business is ..... of the business
16. ..... account is credited when application money is transferred
17. Assets = Liabilities + Owner's Equity
18. Financial accounting:
19. Find the term to match the meaning below:The result of subtracting cost of sales from the net sales revenue
20. What will usually cause the liability account Accounts Payable to increase?
21. Financial statements report the fair market value of a company.
22. Capital account is
23. ..... describes a company's revenues and expenses along with the resulting net profit or loss over a period of time due to earnings activities.
24. Income received in advance is shown in balance sheet as
25. Assume that Horicon Corp. acquired 25% of the common stock of Sheboygan Corp. on January 1, 2017, for $ 300, 000. During 2017, Sheboygan Corp. reported net income of $ 160, 000 and paid total dividends of $ 60, 000. If Horicon uses the equity method to account for its investment, the balance in the investment account on December 31, 2017, will be:
26. The account that reflects interest accrued on business debts.
27. Which of the following elements of a manufacturing account matches the definition below:Fees that must be paid to other persons for the right to produce their products or to use their processes.
28. Allowance for Doubtful Accounts is classified as
29. The meaning of monetary unit assumption is .....
30. The modern system of Accounting owes to
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