Financial Accounting Quiz

Which of the following pairs of items would you expect to see in the financial statements of a partnership?

• Dividends paid and Share premium account

• Capital accounts and Profit appropriate account

• Profit appropriation account and Dividends paid

• Share premium account and Capital accounts

Which accounting principle is described by the following statement? "It is a threshold quality that requires information is disclosed if it is likely to affect decisions made by users of financial statements"

• Prudence

• Materiality

• Going concern

• Business entity

The principle of consistency is best described by which of the following statements?

• Transactions should be accounted for on a consistent basis within an accounting period only.

• Transactions should be accounted for on a consistent basis from one accounting period to another.

• Transactions relating to the statement of financial position only should be accounted for on a consistent basis.

• Transactions should be accounted for on a consistent basis, both within an accounting period, and from one accounting period to another.

Which of the following statements best explains the principle of faithful representation in relation to the preparation of the annual financial statements?

• Transactions are presented any way that is considered appropriate.

• Transactions are presented in such a way as to maximize profit for the year.

• Transactions are presented in such a way to maximize asset values in the statement of financial position.

• Transactions are presented to reflect their commercial substance of a transaction rather than their legal form.

Which of the following statements contains a definition of corporate governance?

• It is a framework that sets out the objectives and concepts for financial reporting.

• It is collective term for all currently valid IFRS Standards.

• It is the system by which companies are directed and controlled in the interests of its shareholders and other stakeholders.

• It is the collective term for the principles and practices used by external auditors when auditing the annual financial statements of a limited liability company.

Which of the following statements best describes the purpose of a goods dispatched note (Delivery note)?

• It is issued by a customer returning faulty goods to their supplier.

• It is issued by a customer to their suppliers and specifies the quantity and type of goods they require to be dispatched.

• It is issued by a supplier to their customer and specifies the quantity and type of goods delivered to that customer.

• It is issued by a supplier to their customer and specifies what goods will be provided to them at a specified future date.

Andrian started a business by transferring a personally-owned building, at a value of $100,000, into the business. What accounting entries are required to record this transaction?

• Dr Capital $100,000, Cr Building $100,000

• Dr Building $100,000, Cr Drawings $100,000

• Dr Building $100,000, Cr Capital $100,000

• Dr Drawings $100,000, Cr Building $100,000

Which of the following entries would be required to account for a reimbursement to the petty cash float of $125 from the bank account?

• Dr Petty Cash, Cr Bank

• Dr Bank, Cr Petty cash

• Dr Drawings, Cr Petty cash

• Dr Drawing, Cr Bank

Which of the following transactions would have no impact upon total assets within the accounting equation?

• The injection of cash into the business by the owner

• A receipt from a credit customer paying the amount due

• The settlement of an outstanding payables to a credit supplier

• The purchase of a machine on credit

Lei operates the imprest system for petty cash. At 1 July there was a float of $150, but it was decided to increase this to $200 from 31 July onwards. During July, the petty cashier received $25 from staff for using the photocopier and a cheque for $90 was cashed for an employee. In July, cheques were drawn for $500 for petty cash. How much cash was paid out as cash expenses by the petty cashier in July?