Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. A suspense account is created when the _______ of the trial balance does not agree
a. Debit side
b. Credit side
c. Asset side
d. balance
Q. The balance of trading account is called
a. Balance carried down
b. Net profit
c. Gross profit
d. Suspense account
Q. Advertisement is a
a. Revenue expense
b. Capital expense
c. Day today expense
d. Deferred revenue expense
Q. Direct expenses are debited in the
a. Balance sheet
b. Trial balance
c. Profit and loss account
d. Trading account
Q. The stock is valued at
a. Cost price
b. Market price
c. Cost price or market price whichever is higher
d. Cost price or market price whichever is lower
Q. The main purpose of accounting is to provide financial info to
a. Shareholder
b. Board of directors
c. Tax authorities
d. All of these
Q. Which of the following is an operating expenses
a. Bad debt
b. Salary to manager
c. Depreciation
d. Expired insurance
Q. Branch stock is always prepared at _______ price
a. Cost
b. Invoice
c. Market price
d. Cost or market price whichever is less
Q. Under______ system branch profit or loss is ascertained by preparing branch accounts
a. Debtors
b. Stock and debtors
c. Wholesale
d. Final accounts
Q. Goods sent to branch account is closed by transferring the balance to_____ account
a. Branch debtors
b. Branch stock
c. Trading account
d. Branch expenses
Q. Selling expenses should be divided among the different departments on the basis of ______
a. Sales
b. Purchase
c. Gross profit
d. Net profit
Q. Building expenses should be divided among the different departments according to the ______by each departments
a. Area occupied
b. No of employees
c. Direct wages
d. Direct material
Q. Balance of trading account is a transfer to
a. Balance sheet
b. Trial balance
c. Profit and loss account
d. Income statement
Q. Depreciation on machinery this transaction initially shown on
a. Trading account
b. Profit and loss account
c. Balance sheet
d. All of these
Q. The expenses which have been incurred to bring the goods or making the goods ready for sales iscalled
a. Administrative expenses
b. Direct expenses
c. Indirect expenses
d. Revenue expenses