Accounting and Finance MCQs Test 1

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

About This Quiz:

  • Chapter: Accounting and Finance
  • Quiz Type: Multiple choice questions (MCQs)
  • Number of MCQs: 40
  • Total Points: 40
  • Approximate Time Required: 25 – 30 minutes

Accounting and Finance MCQs Test

Frequently Asked Questions

What is a statement of accounts?

A statement of accounts is a financial record that reflects all transactions between you and a customer. It tells the customer how much he or she owes you for goods received on credit during a given period.

What’s the difference between General Journal and ledger?

General Journals record business transactions in sequential order, and are the first place to record unique data entries for checks or invoices issued.

What’s the difference between General Journal and ledger?

What’s the difference between General Journal and ledger?

Why is Double-entry System important?

Double-entry accounting helps companies maintain books that balance, makes financial reporting more accurate, and reduces the chance of fraud.

What are Capital Expenditures (CapEx)?

Capital Expenditures (CapEx) refers to the acquisition, upgrading, and maintenance of physical assets, such as property, plants, buildings, technology, or equipment.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

3 thoughts on "Accounting and Finance MCQs Test 1"

  1. Question 26 of 40
    This is not non-current asset it is current liability as you explain
    Expense owing means expense, which has been incurred, but payment for it is yet to be made; so it is a liability. Moreover as its amount is payable within one year so is shown as a current liability.

  2. I think you have to look at the question again.
    In the 2018 year there are 12 months and in each of the month rent was earned hence in the income statement the full amount of 10 000 should be recorded in the income statement.
    With regards to your explanation, please look at dates the contract started in 1996 and not 2018.
    The answer 7500 would be correct if they started renting the premises on the 1st of April 2018
    You might need to change the dates in the question for it to match your answer.

    1. Hi Michael,
      Thanks for pointing out the mistake. We’ve made the required correction. Your comments are very valuable to us.
      We hope that in the future you will continue to guide us to make our work even better.
      Best Regards,
      Admin

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