MCQ Collection
Financial Accounting MCQs
Practice Financial Accounting questions with answers and explanations.
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Correct Answer: C. a statement of cash inflows and outflows by activity
Explanation:
cash flow statement refers to a statement of cash inflows and outflows by activity
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Correct Answer: A. materiality
Explanation:
materiality is the term that matches the description: the significance of information to users’ decisions
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Correct Answer: B. journal
Explanation:
journal is the term that matches the description: the book of original entry
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Correct Answer: B. gross profit
Explanation:
gross profit is the term that matches the description: sales revenue minus cost of goods sold
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Correct Answer: D. a list of ledger balances used to check debit–credit equality
Explanation:
trial balance refers to a list of ledger balances used to check debit–credit equality
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Correct Answer: C. systematic allocation of a depreciable asset’s cost over useful life
Explanation:
depreciation refers to systematic allocation of a depreciable asset’s cost over useful life
