Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Goods – in – transit are shown in the balance sheet of
a. Branch
b. Head office
c. Both a and b
d. None of the above
Q. Up to the trial balance, the accounting arrangements for a foreign branch are exactly the same as for any
a. Dependent branch
b. Independent branch
c. Both a and b
d. None of the above
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. Dependent branch makes :
a. Cash sales only
b. Credit sales only
c. Cash & Credit sales
d. Instalment sales
Q. Branch which donot maintain its own set of books is__________.
a. Dependent branch
b. Independent branch
c. Foreign branch
d. Local branch
Q. An independent branch
a. Receives the goods from the head office
b. Purchases the goods from outside parties
c. Receives goods from both head office and outside parties
d. None of the above
Q. The Head office account in the books of branch is debited with
a. Cash sent to the head office and goods returned to the head office
b. Cash and goods received from the head office
c. Head office expenses allocated to branch by the head office
d. None of the above
Q. The adjustment entry for goods in transit is passed in the books of
a. Either the branch or the head office
b. Branch as well as Head office
c. Only Branch account
d. Only Branch account
Q. For depreciation on fixed assets, whose accounts are maintained by the head office, the head office
a. Debit Fixed assets account and credit Branch account
b. Debit Branch account and credit Fixed assets account
c. Debit Branch account only
d. Credit fixed assets.
Q. In case of inter-branch transactions, each branch
a. Opens separate accounts for other branches
b. Passes no entry
c. May treat such transactions as the transactions with the Head office
d. All the above
Q. The Head Office Account maintained by the branch is of the nature of
a. Real Account
b. Personal Account
c. Nominal Account
d. None of the above
Q. Debtors system of keeping branch accounts are generally
a. Branch fairly small in size
b. Branch big in size
c. Branch with multiple transactions
d. All the above
Q. Branches may be classified into ________.
a. Inland branches and foreign branches
b. Account branches and proper branch
c. Main branch and subordinate branch
d. None of these