Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Branch account under stock and debtors system is a ________ account
a. real
b. nominal
c. personal
d. representative personal
Q. When branch A sent goods to branch B in the books of branch A debit is given to
a. head office account
b. branch B account
c. sales returns account
d. purchase returns account
Q. Goods sent by the head office to the branch but not received by the branch before the close offinancial year are credited by head office to
a. branch account
b. trading account
c. goods sent to branch account
d. goods in transit account
Q. When a branch purchases fixed assets and the assets account is to be kept in the books of thehead office, the branch makes the following entry
a. debits head office credits bank
b. debits branch credits head office
c. debits head office credits branch asset
d. debit branch assets credit banks
Q. Depreciation on branch assets under debtors system is
a. not shown separately in branch account
b. shown in branch account
c. not accounted
d. shown in the profit and loss account of head office
Q. Stock reserve in relation to closing stock appears
a. on the debit side of branch account
b. on the credit side of branch account
c. on the debit side of profit and loss account
d. on the credit side of profit and loss account
Q. Branch adjustment account is in the nature of ______
a. nominal
b. personal
c. real
d. none of these
Q. Cash remitted by branch but not received by the head office is debited by the head office to_____
a. goods in transit
b. cash in transit
c. branch account
d. head office account
Q. Goods sent by branch X to branch Y will be debited to ______
a. branch Y
b. branch X
c. head office
d. goods sent account
Q. Under hire purchase system depreciation is charged:
a. on cash price
b. hire purchase price
c. market price
d. none of these
Q. Hirer charges depreciation on
a. hire purchase price
b. cash price
c. lower of the two
d. none of these
Q. What is transferred to hirer under hire purchase system
a. ownership of asset
b. possession of assets
c. ownership and possession of asset
d. none of these
Q. The sale of goods act is applicable in
a. Credit purchase
b. Cash purchases
c. Cash sales
d. None of these
Q. What is transferred to hirer under installment payment system
a. Ownership of assets
b. Possession of assets
c. ownership and possession of asset
d. none of these