Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. _______ is root cause for financial accounting
a. stewardship accounting
b. social accounting
c. management accounting
d. human resource accounting
Q. The proprietor of the business is treated as creditor for the capital introduced by him dueto_____ concept.
a. money measurement
b. cost
c. entity
d. dual aspect
Q. Fixed assets are held by business for _____
a. converting into cash
b. generating revenue
c. resale
d. none of the above
Q. Which accounting concept specifies the practice of crediting closing stock to the tradingaccount?
a. cost
b. realisation
c. going concern
d. matching
Q. Amount spent to increasing the earning capacity is a ______ expenditure
a. capital
b. revenue
c. deferred revenue
d. capital loss
Q. Human resources will not appear in the balance sheet according to ______ concept.
a. accrual
b. going concern
c. money measurement concept
d. none
Q. Provision for discount on debtors is calculated on the amount of debtors.
a. before deducting provision for doubtful debts.
b. after deducting provision for doubtful debts.
c. before deducting actual debts and provision for doubtful debts.
d. after adding actual bad and doubtful debts.
Q. Which of the following is not a Real Account?
a. cash a/c
b. investments a/c
c. outstanding rent a/c
d. purchases a/c
Q. Value of goods withdrawn by the proprietor for his personal use should be credited to ____
a. capital a/c
b. sales a/c
c. drawings a/c
d. purchases a/c
Q. Cancelation of shares mean
a. reissue of shares
b. valuation of shares
c. forfeiture of shares
d. allotment of shares
Q. To issue shares on premium mean
a. issue on face value of shares
b. issue on more than face value of shares
c. issue on less than face value of shares
d. initial public offer
Q. To issue shares on Par mean
a. issue on face value of shares
b. issue on more than face value of shares
c. issue on less than face value of shares
d. initial public offer
Q. To issue shares on Discount mean
a. issue on face value of shares
b. issue on more than face value of shares
c. issue on less than face value of shares
d. initial public offer