Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Capital investments for the branches are made by
a. State office
b. Central office
c. Head office
d. None of these.
Q. Branches not keeping full system of accounting is called________.
a. Independent branches
b. Partial branches
c. Dependent branches
d. None of these
Q. It is a system of finding out the profit made by a head office at a branch by preparing an account called_______.
a. Profit &loss a/c
b. Trading a/c
c. Branch a/c
d. None of these.
Q. __________Account is prepared with a view to ascertain the gross profit of branch.
a. Branch account
b. Branch adjustment a/c
c. Branch expense a/c
d. None of these.
Q. _________ represents goods sent by head office to the branch or by the branch to the head office but not received by other
a. Goods in transit
b. Cash in transit
c. Barter transit
d. None of these.
Q. HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to –
a. 15%
b. 25%
c. 33.33%
d. 20%
Q. Under stock and debtors system, which of the following accounts is prepared with a view to ascertain Gross Profit of the Branch?
a. Branch Adjustment Account
b. Branch Profit and Loss Account
c. Branch Expenses Account
d. Goods Sent to Branch Account
Q. Under Debtors’ system, credit sales are
a. Debited to Branch Account
b. Credited to Branch Account
c. Debited to Branch Debtors Account
d. None of the Above
Q. Branches may be classified into
a. Account branches and proper branch
b. Main branch and subordinate branch
c. Inland branches and foreign branches
d. None of the Above
Q. Transaction between branches are called
a. Branch transaction
b. Inter branch transaction
c. Internal transaction
d. None of these
Q. The main reasons of keeping branch accounts
a. to find out the profit or loss of each branch for the accounting period
b. to ascertain the financial position of each branch at the end of the accounting year
c. to evaluate the progress and performance of each branch
d. All of these
Q. Profit generated from the branch is transferred to
a. Branch profit and loss account
b. General profit and loss account
c. Branch expenses account
d. None of these
Q. The price of goods sent by head office to branch at a price higher than cost price is called
a. Actual price
b. Unloaded price
c. Invoice price
d. None of these
Q. Branches not keeping full system of accounting is called
a. Independent branches
b. Partial branches
c. Dependent branches
d. None of these
Q. As per Accounting Standard-3, Cash Flow is classified into:
a. Operating activities and investing activities.
b. Investing activities and financing activities.
c. Operating activities and financing activities.
d. Operating activities, financing activities and investing activities.