Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. Forfeited shares to become ________
a. property of the government
b. property of the company
c. property of the shareholders
d. property of all the shareholders
Q. Debentures represent the _________
a. manager's share in a business
b. investment by shareholders in a business
c. long term borrowing of a business
d. none of the above
Q. Discount on issue of debentures is shown under the heading in a company's Balance Sheet_______
a. fixed assets
b. loans and advances
c. investment
d. miscellaneous expenditure
Q. The excess price received over the par value of shares, should be credited __________.
a. calls-in-advance account
b. share capital account
c. securities premium account
d. discount on issue of shares account
Q. The Securities Premium amount may be utilized by a company for __________.
a. writing off any loss on sale of fixed asset
b. writing off any loss of revenue nature
c. writing off the expenses/discount on the issue of debentures
d. none of these
Q. When shares are forfeited, the share capital account is debited with ________ and theshare forfeiture account is credited with __________.
a. paid-up capital of shares forfeited; called up capital of shares forfeited
b. called up capital of shares forfeited; calls in arrear of shares forfeited
c. called up capital of shares forfeited; amount received on shares forfeited
d. none of these
Q. As per the SEBI guidelines, on issue of shares, the application money should not be lessthan
a. 2.5% of the nominal value of shares
b. 2.5% of the issue price of shares
c. 25% of the issue price of shares
d. 25% of the nominal value of shares
Q. Small items like, pencils, pens, files, etc. are written off within a year according to ___concept.
a. materiality
b. consistency
c. conservatism
d. realisation
Q. Business enterprise is separate from its owner according to _____ concept.
a. money measurement concept
b. matching concept
c. entity concept
d. dual aspect concept
Q. The policy of anticipate no profit and provide for all possible losses arise due to the conceptof _____
a. consistency
b. disclosure
c. conservatism
d. matching
Q. According to which concept, the proprietor pays interest on drawings
a. accrual concept
b. conservatism concept
c. entity concept
d. dual aspect concept
Q. Cost concept basically recognises ____
a. fair market value
b. historical cost
c. realisable value
d. replacement cost
Q. If the Market value of closing Inventory is less than its cost price, inventory will he shownat ____
a. marketable value
b. fair market value
c. both
d. none
Q. The Market price of good declined than the cost price. Then the concept that plays a keyrole is ____
a. materiality
b. going concern concept
c. realization
d. consistency