This quiz works best with JavaScript enabled. Home > Finance > Accounting > Financial Accounting > Financial Accounting – Quiz 90 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Financial Accounting Quiz 90 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A report of the balances of all asset, liability, and owner's equity accounts at the end of an accounting period. A) Balance sheet. B) Income statement. C) Statement of cash flows. D) Statement of income. Show Answer Correct Answer: A) Balance sheet. 2. Which of the following is the accounting equation? A) Assets = Equity-Liabilities. B) Liabilities = Equity + Assets. C) Equity = Assets + Liabilities. D) Assets = Equity + Liabilities. Show Answer Correct Answer: D) Assets = Equity + Liabilities. 3. The rule for personal representative account is A) Dr. what comes in Cr. what goes out. B) Dr. the receiver, Cr. the giver. C) Dr. all expenses and losses, & Cr. all incomes & gains. D) None of the above. Show Answer Correct Answer: B) Dr. the receiver, Cr. the giver. 4. Which of the following result in a credit entry? A) Decrease in Income. B) Increase in Equity. C) Increase in Asset. D) Increase in Expense. Show Answer Correct Answer: B) Increase in Equity. 5. Stock of goods is divided into ..... A) 4. B) 3. C) 2. D) 10. Show Answer Correct Answer: C) 2. 6. Which industry has been a major foreign exchange earner in the last few years? A) Automobile. B) Textile. C) Iron and Steel. D) Information Technology. Show Answer Correct Answer: D) Information Technology. 7. ..... is the process of allocating the cost of the natural resources to the units removed A) Depletion. B) Appreciation. C) Depreciation. D) Amortization. Show Answer Correct Answer: D) Amortization. 8. The Realization of Revenue generally accepted accounting principle (GAAP) states that revenue A) Should be recorded only when cash is received. B) Only need to be reported if it comes from a registered business. C) Should be predicted and recorded on the same statement. D) Must be earned before it can be included in an income statement. Show Answer Correct Answer: D) Must be earned before it can be included in an income statement. 9. Cash received from the sale of long-term investments should be classified as a cash flow from: A) Operating activities. B) Financing activities. C) Investing activities. D) None of above. Show Answer Correct Answer: C) Investing activities. 10. How was advertising cost calculated? (Question 2) A) 25680 x 2400 / 240. B) 25680-2400 + 240. C) 25680 / 2400 + 240. D) 25680 + 2400-240. Show Answer Correct Answer: D) 25680 + 2400-240. 11. The seller pays for freight A) FOB. B) FOB Merchandise. C) FOB Shipping Point. D) FOB Destination. Show Answer Correct Answer: D) FOB Destination. 12. The format of account that tells the balance after each entry is known as: A) T-account format. B) Advance account format. C) Running balance account format. D) None of the above. Show Answer Correct Answer: C) Running balance account format. 13. Which statement is incorrect regarding the FRSC? A) Shall be composed of fifteen (15) members with a chairman. B) Is the successor of the Accounting Standards Council (ASC), which was created in November 1981 by the Philippine Institute of Certified Public Accountants (PICPA). C) The Chairman and members of the FRSC are appointed by the PRC upon the recommendation of the BOA in coordination with the accredited professional organization (APO) of CPAs. D) Has the authority to establish the accounting framework to be used by companies under its jurisdiction. Show Answer Correct Answer: D) Has the authority to establish the accounting framework to be used by companies under its jurisdiction. 14. Paid to Sania Rs.9, 650 in full payment of her dues of Rs.10, 000. The journal entry is ..... A) Sania A/c Dr.10, 000 To Cash A/c 9, 650; To Discount Received A/c 350. B) Sania A/c Dr. 9, 650 Discount allowed A/c Dr. 350 To Cash A/c 10, 000. C) Sania A/c Dr.10, 000 To Cash A/c 10, 000. D) Cash A/c Dr 9, 650 Discount Allowed A/c Dr 350 To Sania A/c 10, 000. Show Answer Correct Answer: A) Sania A/c Dr.10, 000 To Cash A/c 9, 650; To Discount Received A/c 350. 15. What is the return on assets given the following:Net Income is $ 100, 000Beginning Assets are $ 30, 000Ending Assets are $ 10, 000Average Assets are $ 20, 000 A) 5. B) 4. C) 10. D) 3.3. Show Answer Correct Answer: A) 5. 16. Choose 1 description that NOT TRUE about intergrated accounting system A) HQ will maintained all transactions by branches in one ledger. B) HQ will be as supplier. C) Transactions by branches recorded and submitted to HQ. D) All account records manage by HQ. Show Answer Correct Answer: B) HQ will be as supplier. 17. On June 1, 2019, Oakcrest Company signed a three-year $ 110, 000 note payable with 9 percent interest. Interest is due on June 1 of each year beginning in 2020. What amount of interest expense should be reported on the income statement for the year ended December 31, 2019? A) $ 9, 900. B) $ 4, 950. C) $ 5, 775. D) $ 5, 250. Show Answer Correct Answer: C) $ 5, 775. 18. PD Jaya has a note receivable worth IDR 10, 000, with a term of 90 days and interest of 12% per year. Based on this transaction, the maturity value is..... A) Rp 11.200. B) Rp 9.700. C) Rp 8.800. D) Rp 10.000. E) Rp 10.300. Show Answer Correct Answer: E) Rp 10.300. 19. A business has Current asset of £100, 000, Non current asset of 50, 000, Current liabilities of £20, 000 what is the Net Asset? A) £30000. B) £150000. C) £130000. D) £30000. Show Answer Correct Answer: C) £130000. 20. FINANCIAL ACCOUNTING PURPOSE IS A) CONTROL COST. B) ASCERTAINMENT OF FINANCIAL POSITION & PROFIT/LOSS. C) FIND OUT COST. D) BUDGETING. Show Answer Correct Answer: B) ASCERTAINMENT OF FINANCIAL POSITION & PROFIT/LOSS. 21. On November 9, 20x1, Entity G received $ 1, 200 from a subscriber to a magazine issued by the entity. Each issue of the magazine is published and sent to subscribers on the first day of each month. Prepare journal entries on the following dates:November 9, 20x1 A) Cash (D) 1200Unearned Service Revenue (K) 1200. B) Account Receivable (D) 1200Cash (K) 1200. C) Account Receivable (D) 1200Service Revenue (K) 1200. D) Unearned Service Revenue (D) 1200Service Revenue (K) 1200. Show Answer Correct Answer: A) Cash (D) 1200Unearned Service Revenue (K) 1200. 22. Paid office rent in cash for January SR5000 A) Cash Rent Expense. B) Accounts payablecash. C) Rent Exensecash. D) CashAccounts payable. Show Answer Correct Answer: C) Rent Exensecash. 23. A share in the share capital of company is called ..... A) Share. B) Debenture. C) Liability. D) Asset. Show Answer Correct Answer: A) Share. 24. Which type of business organization has a separate legal entity from its owner? A) Sole proprietorship. B) Partnership. C) Limited company. D) None of the above. Show Answer Correct Answer: C) Limited company. 25. The Assumption that revenues are recognised when earned and expenses when incurred so profit is calculated as Revenue earnt less expenses incurred is the A) Accrual basis assumption. B) Period assumption. C) Entity assumption. D) Going concern assumption. Show Answer Correct Answer: A) Accrual basis assumption. 26. The business owner, Jack invested $ 9000 into the business bank account. What is the double entry to record this transaction? A) Debit Bank and Credit Capital. B) Debit Capital and Credit Bank. C) Debit Capital and Credit Jack. D) Debit Jack and Credit Bank. Show Answer Correct Answer: A) Debit Bank and Credit Capital. 27. The document that contains the regulation which governs the internal management of the company's affairs is A) Memorandum of association. B) Prospectus. C) Articles of association. D) Certificate of incorporation. Show Answer Correct Answer: C) Articles of association. 28. The area of accounting that focuses on reporting information to external users is called managerial accounting. A) True. B) False. Show Answer Correct Answer: B) False. 29. Indirect expenses will be apportioned in A) P & L a/c. B) Trading a/c. C) Branch P& l a/c. D) General P&L a/c. Show Answer Correct Answer: A) P & L a/c. 30. Cost accounting is needed by which type of users A) External users. B) Internal users. Show Answer Correct Answer: B) Internal users. ← 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