Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Under debtors system depreciation on fixed asset is:
a. credited to branch A/c
b. debited to branch A/c
c. not shown in branch A/c
d. shown in debtors A/c
Q. Independent Branch meant when separate account are maintained by:
a. H O
b. Branch
c. Both (a) and (b)
d. None of the above
Q. Branch which does not maintain its own set of books is:
a. Dependent branch
b. Independent branch
c. Foreign branch
d. Local branch
Q. Usually dependent branch makes:
a. Cash sales only
b. Credit sales only
c. Cash & Credit sales
d. Instalment sales
Q. Under Stock & Debtors system, which account is prepared by H.O to ascertain the GrossProfit earned by the branch:
a. Branch stock A/c
b. Branch Adjustment A/c
c. Branch expenses A/c
d. Branch P&L A/c
Q. Branch Account under Debtor System is
a. Real Account
b. Personal Account
c. Nominal Account
d. None of the above
Q. When goods are invoiced to Branch at selling price, the value of goods is adjusted by
a. Debiting goods sent to Branch Account
b. Crediting goods sent to Branch Account
c. Debiting Stock to Reserve Account
d. Crediting Stock to Reserve Account
Q. Goods sent by the Head Office to the branch but not received by the branch are termed as
a. Cash in transit
b. Goods in transit
c. Independent goods
d. Abnormal loss
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 at invoice price, Rs____ will be credited to stock reserve a/c.
a. Rs. 10,000
b. Rs. 12,000
c. Rs. 6,000
d. Rs. 12,600
Q. When Branch assets a/c is kept in the books of H.O., the H.O. will debit following a/c for its depreciation-
a. Branch P & L A/c
b. Depreciation A/c
c. Branch A/c
d. None of the above
Q. Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts?
a. Independent Branch
b. Foreign Branch
c. Dependent branch
d. Independent and Foreign branch both
Q. If the opening balance of debtors is Rs.16,000 and closing balance is Rs.80,000, cash received from debtors is Rs.35,000 and bad debts is Rs.1,000, then what will be the amount of credit sales?
a. Rs. 95,000
b. Rs. 1,05,000
c. Rs. 1,00,000
d. Rs. 1,10,000
Q. Stock and debtors system is generally used when the goods are sent to the branch at
a. Cost price
b. An invoice price
c. Both a and b
d. None of the above
Q. Branch stock account is a practical means of controlling stock at
a. Branch
b. Head office
c. Both a and b
d. None of the above