Quiz: Financial Accounting

Test your knowledge with 10 random questions from this subject.

Question 1:

A company's branch has cash sales of ?70,000 and credit sales of ?30,000. If the branch remits ?80,000 to the head office, what is the closing balance of cash at the branch?

Question 2:

The straight-line method assumes that the value of the asset:

Question 3:

A company has a provision for discount on creditors at 3% of its creditors, which amount to ?500,000. What is the amount of the provision?

Question 4:

XYZ Ltd. purchased a machine for ?100,000 with an estimated life of 10 years and no salvage value. Using the straight-line method, what is the annual depreciation expense?

Question 5:

In consignment accounting, the valuation of closing stock is important for:

Question 6:

In a joint venture, the co-venturers:

Question 7:

A consignor sends goods to a consignee, who sells them for ?400,000. The consignor had incurred shipping costs of ?30,000. If the consignor's profit is ?70,000, what was the cost of the goods?

Question 8:

A company purchased equipment for ?800,000 with an estimated life of 8 years and a salvage value of ?80,000. Using the sum-of-the-years'-digits method, what is the depreciation expense in the third year?

Question 9:

If a company has a repairs and renewals reserve of ?50,000 and incurs repair expenses of ?60,000, what is the balance in the reserve after the repairs?

Question 10:

The provision for discount on debtors is recorded in the financial statements as a: