Financial Accounting Quiz Questions and Answers

Financial Accounting Quiz Questions and Answers-

Question 1.

The debts owing to others by the business is known as-
a) liabilities

b) expenses

c) debtors

d) Assets

Answer– a) liabilities

Question 2.

A written document in support of a transaction is called-
a) Receipt

b) Credit note

c) Voucher

d) Debit note

Answer– c) Voucher

Question 3.

Assets minus liabilities is-
a) drawings

b) capital

c) credit

d) Debit

Answer– b) capital

Question 4.

Capital+ liabilities =
a) drawings

b) capital

c) credit

d) Assets

Answer– d) Assets

Question 5.

As per the business entity assumption, the business is different from the-
a) owners

b) banker

c) government

d) Assets

Answer– a) owners

Question 6.

As per dual aspect concept, every business transaction has-

a) three aspects

b) one aspect

c) two aspects

d) Four aspects

Answer– c) two aspects

Question 7.

The receiving aspect in a transaction is called as-
a) debit aspect

b) credit aspect

c) Assets aspect

d) liabitities aspect

Answer– a) debit aspect

Question 8.

The Giving aspect in a transaction is called as-
a) debit aspect

b) credit aspect

c) Assets aspect

d) liabitities aspect

Answer– b) credit aspect

Question 9.

Capital account is classified under-
a) personal A/c

b) real A/c

c) nominal A/c

d) Impersonal A/c

Answer– a) personal A/c

Question 10.

Which of the following is correct?
a) Capital = Assets + Liabilities
b) Capital = Assets – Liabilities
c) Assets = Liabilities – Capita

d) Liabilities= Capital +Assets

Answer– b) Capital = Assets – Liabilities

Also read : Ledger

Financial Accounting Quiz Questions and Answers-

Question 11.

Which of the following is not a business transaction?
a) Bought Computer of 50,000 for business
b) Paid for salaries of employees 15,000

(c) Paid sons fees from his personal bank account 80,000
d) Paid sons fees from the business 60,000

Answer– (c) Paid sons fees from his personal bank account 80,000

Question 12.

The liability arising from the purchase of goods on credit is called-
a) Creditors

b) Accounts Receivable
c) Loan

d) Payable expenses

Answer– a) Creditors

Question 13.

Anticipate no profits and provide for all possible losses. This is essence of which of the following accounting principles-
a) Dual Aspect Principle

b) Materiality Principle
c) Consistency Principle

d) Conservatism Principl

Answer– d) Conservatism Principle

Question 14.

Unfavorable balance means?
a) Credit balance in the cash book
b) Credit balance in Bank statement
c) Debit balance in cash book
d) Debit balance in petty cash book

Answer– a) Credit balance in the cash book

Question15.

Which of the following item is not included in the Cash Book?
a) Purchases of  10,000
b) Sales of  50,000
c) Received cash for Soloman  20,000
d) Credit sales of  32,000

Answer–  d) Credit sales of  32,000

Question16.

Cash or goods taken away by the proprietor for his personal use is called-
a) Drawings

b) Sales
c) Charity

d) Expense

Answer– a) Drawings

Question17.

_________ is prepared for showing the financial position of the business summarising its assets and liabilites at a given date. 
a) Statement of profit and loss
b) Balance sheet
c) Statement of shareholdeis equity
d) Fund flow statement.

Answer– b) Balance sheet

Question18.

Which of the following is not a personal account-
a) Bank Account

b) Drawings Account
c) Proprietor’s Account

d) Livestock Account

Answer– d) Livestock Account

Question 19.

Which of the following account should be credited for the goods worth  15,000 withdrawn for personal use? 
a) Sales A/c

b) Drawings A/c
c) Purchases A/c

d) Cash A/c

Answer– c) Purchases A/c

Question 20.

Which of the following is not a current assets-
a) Stock

b) cash
c) Trade Receivables

d) Goodwill

Answer– d) Goodwill

Also read : External Users of accounting Information

Financial Accounting Quiz Questions and Answers-

Question 21.

The amount invested by the proprietor in a business is called-
a) Capital

b) Cash

c) Creditor

d) Debtor

Answer– a) Capital

Question 22.

Goodwill is a _______
a) Fictitious Asset

b) Tangible Asset
c) Intangible Asset

d) Expenses

Answer– c) Intangible Asset

Question 23.

Bank Reconciliation statement is Prepared by- 
a) Creditors

b) Debtors
c) Account holder

d) Bank

Answer– c) Account holder

Question 24.

Which of the following account will be Debited on giving Cash Donations?
a) Purchases A/C

b) Cash A/C
(c) Donation A/C

d) Drawings A/C

Answer– (c) Donation A/C

Question 25.

Provision is created for-
a) Known Liability

b) Unknown Liability
c) Strengthening Financial Position
d) Distribution of Dividend

Answer– a) Known Liability

Question 26.

External users of accounting information is –
a) Owners

b) Management
c) Employee
d) Bank

Answer– a) Bank

Question 27.

Internal users of accounting information is –
a) Owners

b) Creditors
c) Government
d) Bank

Answer– a) Owners

Question 28.

Purchases book records-
a) All cash purchases

(b) All credit purchases.
c) Credit purchases of goods in trade.
d) None of the above

Answer– c) Credit purchases of goods in trade.

Question 29.

In Double Entry System of Book-keeping every business transaction affects-
a) Two accounts.
b) Two sides of the same account.
c) The same account on two different dates.
d) All of the above

Answer– d) All of the above

Question 30.

Which of the following is not a sub-field of accounting?
a) Management accounting.
b) Cost accounting.
c) Financial accounting.
d) Book-keeping.

Answer– d) Book-keeping.

Also read : Classified balance sheet

Financial Accounting Quiz Questions and Answers-