Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Debentures are shown in the B/S under head.
a. Current assets, loans and advances
b. Investment
c. Non current liabilities
d. Unsecured loan
Q. Preliminary expenses is an example of
a. Fixed asset
b. Current asset
c. Investment
d. Fictitious asset
Q. Divisible profit do not include
a. Insurance fund
b. Reserve fund,
c. profit and loss account balance
d. revaluation reserve
Q. loose tools are shown in the B/S under the head.
a. Fixed asset
b. Investment
c. Current asset
d. Miscellaneous expenditure
Q. Discount on shares and debentures are shown in
a. Profit and loss appropriation account
b. Asset side of the balance sheet
c. Liability side of the balance sheet
d. None of these
Q. In the case of joint stock company, goodwill is shown on the asset side under thehead.
a. Non current asset
b. Investment
c. Current asset
d. Miscellanious expenditure
Q. Which of the following item will be taken in the surplus statement
a. Provision for taxation
b. Transfer to sinking fund
c. Contribution to PF
d. Preliminary expenses written off
Q. Which of the following would not appear in a limited company’s surplus/Deficitstatement
a. Transfer to revaluation reserve
b. Provision for taxation
c. Interim dividends
d. Transfer to general reserve
Q. According to which concept, proprietor of a business is treated as a creditors to the extent of hiscapital
a. Money measurement
b. Cost
c. Dual aspect
d. Business entity
Q. Net worth of business means
a. Total assets
b. Fixed assets – current assets.
c. Equity capital
d. Total assets – total liabilities
Q. The policy of anticipate no profit and provide for all possible losses arises due to
a. Convention of consistency
b. Convention of conservatism
c. Convention of materiality
d. Convention of full disclosure
Q. Capital account is a
a. Fictitious account
b. Personal account
c. Liability account
d. Nominal account
Q. Revenue is generally recognized as being earned at the point of time
a. Sale is effected
b. Cash is effected
c. Production is completed
d. All of the above