Final Accounts MCQs (11-20)

11. Goodwill would be reported in the ______________ section of a classified balance sheet?

(a) Current assets

(b) Long-term liabilities

(c) Intangible assets

(d) Long-term investments

Correct! Wrong!

12. Which of the following is recorded under long term liabilities section of the balance sheet?

(a) Creditors

(b) Debentures

(c) Dividend Payable

(d) Provision for Taxation

Correct! Wrong!

13. Revenue generated other than principle activities of the business are called?

(a) Income

(b) Profit

(c) Other income

(d) All of above

Correct! Wrong!

14. When opening stock given in trial balance, then it will effect?

(a) Trading account only

(b) Balance sheet only

(c) Owner's equity only

(d) Both Trading account and Balance sheet

Correct! Wrong!

15. Which of the following liabilities are not related to the operating cycle?

(a) Wages payable

(b) Accounts payable

(c) Utilities payable

(d) Bonds payable

Correct! Wrong!

16. Which of the following would not be classified a long-term liability?

(a) Current maturities of long-term debt

(b) Bonds payable

(c) Mortgage payable

(d) Lease liabilities

Correct! Wrong!

17. All of the following are property, plant, and equipment except?

(a) Machinery

(b) Supplies

(c) Land

(d) Buildings

Correct! Wrong!

18. The Freight-in account?

(a) Increases the cost of merchandise purchased

(b) Is contra to the Purchases account

(c) Is a permanent account

(d) Has a normal credit balance

Correct! Wrong!

19. Net sale is sales less?

(a) Sales discounts

(b) Sales discounts and sales returns and allowances

(c) Sales returns and allowances

(d) Sales returns

Correct! Wrong!

20. Summers, Inc. uses the allowance method to account for bad debts. The entry to record the write-off of a customer’s account balance decreases?

(a) Assets and owners’ equity

(b) Assets and decreases liabilities

(c) Owners’ equity and revenues

(d) None of these answers is correct

Correct! Wrong!

Final Accounts MCQs (11-20)

11. Goodwill would be reported in the ______________ section of a classified balance sheet?

12. Which of the following is recorded under long term liabilities section of the balance sheet?

13. Revenue generated other than principle activities of the business are called?

14. When opening stock given in trial balance, then it will effect?

15. Which of the following liabilities are not related to the operating cycle?

16. Which of the following would not be classified a long-term liability?

17. All of the following are property, plant, and equipment except?

18. The Freight-in account?

19. Net sale is sales less?

20. Summers, Inc. uses the allowance method to account for bad debts. The entry to record the write-off of a customer’s account balance decreases?

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