Top 250+ Solved Financial Accounting 2 MCQ Questions Answer
Q. The comparison of financial statement of one year with that of another is possible onlywhen _______ concept is followed
a. going concern
b. accrual
c. consistency
d. materiality
Q. Profit and loss is calculated at the stage of
a. recording
b. posting
c. classifying
d. summarising
Q. Which of the following is not the main objective of accounting?
a. systematic recording of transactions
b. ascertaining profit or loss
c. ascertainment of financial position
d. solving tax disputes with tax authorities
Q. The rule debit all expenses and losses and credit all income and gains relates to
a. personal account
b. real account
c. nominal accounts
d. all
Q. Matching concept means
a. assets = capital + liabilities
b. transactions recorded at accrual concept
c. anticipate no profit but recognize all losses
d. expenses should be matched with the revenue of the perio branch accounts
Q. When Branch pays expenses for H.O. the following account is debited in the books of thebranch _______
a. expenses is debited
b. h.o. a/c is debited
c. branch is debited
d. none
Q. Under the stock and debtor system, Branch A/c is treated as ______
a. joint a/c
b. nominal a/c
c. personal a/c
d. real a/c
Q. Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 atinvoice price, Rs ______ will be credited to stock reserve a/c.
a. rs 10000
b. rs 12000
c. rs 6000
d. rs 12600
Q. HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profiton cost comes to ______
a. 15%
b. 25%
c. 33.33%
d. 20%
Q. HO sends goods to branch at invoice price after adding 25% on cost price, so profit wouldbe ___ % of invoice price
a. 33.33%
b. 40%
c. 20%
d. 25%
Q. For finding the amount of sundry expenses paid by the branch, the following a/c should beprepared.
a. computer a/c
b. creditors
c. petty cash a/c
d. debtors
Q. Which of the following branches, taking into consideration the scope of authority andresponsibility, prepares its own independent final accounts?
a. independent branch
b. foreign branch
c. dependent branch
d. independent and foreign branch both
Q. Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closingbalance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?
a. rs 10,24,000
b. rs 8,84,000
c. rs 11, 52,000
d. rs 8,42,000