FIN621 Quiz # 1

 Shared By: Hafiz Salman

Question # 1 of 15 ( Start time: 07:31:56 PM ) Total Marks: 1

Which of the following is not true about the “Account”?

Select correct option:

Accounts are only prepared by the business entities

Account always reflects the amount of the single transaction only

Account is effected both by economic and non economic events

All of the given options

Question # 2 of 15 ( Start time: 07:33:17 PM ) Total Marks: 1

Which of the following is NOT one of the three items required to be shown in the heading of a financial statement?

Select correct option:

The preparation date of the financial statement

The title of the financial statement

The unit of measure in the financial statement

The name of the business entity

Question # 3 of 15 ( Start time: 07:34:12 PM ) Total Marks: 1

End product of the accounting cycle is known as the__________

Select correct option:

Tax return

Financial statements

Auditor’s annual report

Annual general meeting

Question # 4 of 15 ( Start time: 07:34:38 PM ) Total Marks: 1

Which of the following is TRUE about both sides of the trial balance?

Select correct option:

Both sides are always positive

Both sides are negative

Both sides are equal

Both sides are not linked which each other

Question # 5 of 15 ( Start time: 07:35:12 PM ) Total Marks: 1

How would an increase in owner’s equity be recorded?

Select correct option:

Debit

Credit

No effect

Statement is wrong

Question # 6 of 15 ( Start time: 07:35:41 PM ) Total Marks: 1

Which of the following account would NOT be closed to the income summary account at the end of a period?

Select correct option:

Rent expense

Revenue earned

Wages expense

Accumulated depreciation

Question # 7 of 15 ( Start time: 07:36:14 PM ) Total Marks: 1

How many parts does each account have?

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Two

Four

Three

Five

Question # 8 of 15 ( Start time: 07:36:38 PM ) Total Marks: 1

Financial statements are a subset of which of the following?

Select correct option:

Financial reporting

Financial statement analysis

Accounting information

Accounting system

Question # 9 of 15 ( Start time: 07:37:10 PM ) Total Marks: 1

Which of the following principle is used for recording a revenue?

Select correct option:

Matching Principle

Cost Principle

Realization Principle

Objectivity Principle

Question # 10 of 15 ( Start time: 07:38:14 PM ) Total Marks: 1

Mr. A purchases a piece of land for cash and debit made to machinery account. What would be the effect of this error on the trial balance?

Select correct option:

Debit side would be decrease with the same amount

Credit side would be increase with the same amount

Total of the trial balance would be agree in all aspect

None of the given options

Question # 11 of 15 ( Start time: 07:39:33 PM ) Total Marks: 1

Accounting is called the “language of business” because__________:

Select correct option:

It communicates the financial information to the Management only

In order to run a business one must have knowledge about accounting

Different business accounts are involved in financial statements

It helps to organize and communicate financial information to end users

Question # 12 of 15 ( Start time: 07:40:18 PM ) Total Marks: 1

Which of the following is/are current asset?

Select correct option:

Rent paid for next six months

Cash at bank

Investments in stock market for two weeks

All of the given option

Question # 13 of 15 ( Start time: 07:41:03 PM ) Total Marks: 1

Which of the following is the third step of accounting cycle?

Select correct option:

Preparing financial statements

Preparing trial balance

Posting

Making adjusting entries

Question # 14 of 15 ( Start time: 07:42:30 PM ) Total Marks: 1

ABC Company has Rs. 150,000 cash, Rs. 80,000 as accounts receivables, Rs. 20,000 as allowance for doubtful accounts, Rs. 10,000 as work in progress inventory, Rs. 55,000 as prepaid expenses, Rs. 50,000 land purchased in the current year. Calculate the value of current assets.

Select correct option:

Rs. 275,000

Rs. 315,000

Rs. 365,000

Rs. 220,000

Question # 15 of 15 ( Start time: 07:43:54 PM ) Total Marks: 1

The definition of cash as used in “Cash Flow Statements” includes:

Select correct option:

Only cash balances

Only bank balances

Bank balances and bank overdrafts

Cash in hand plus bank balances less bank overdrafts