Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. In the balance sheet of sole trader business , assets are managed in the order of
a. Permanency
b. Liquidity
c. Priority
d. Flexibility
Q. Under ______ system the buyer does not get ownership of goods immediately
a. Installment
b. HP
c. Installment and HP
d. None of these
Q. ________ means the price at which the goods can be purchased by the hirer for ready cash
a. HP price
b. Installment price
c. Cash price
d. Down payment
Q. _______ is the initial payment made at the time of signing the hire purchase agreement
a. HP price
b. Installment price
c. Cash price
d. Down payment
Q. The difference between hire purchase price and the cash price is called ______
a. Hire charges
b. Cost of the asset
c. Installment price
d. Cash price
Q. Under ______ system , the buyer gets ownership of goods immediately
a. Installment
b. HP
c. Installment and HP
d. None of these
Q. When an asset is acquired on hire purchase system, the asset account is debited with _______ ofthe assets in the books of the hire purchaser.
a. Hp price
b. Cash price
c. Installment price
d. None of these
Q. In order to deal with the re possession the hire vendor operates an account called _______
a. Asset account
b. Goods account
c. Goods repossessed account
d. None of these
Q. Under _____ system , the hire vendor has a right to take back the goods
a. Installment
b. HP
c. Installment and HP
d. None of these
Q. Single entry system of accounts is maintained by ______
a. Partnership
b. Company
c. Sole trader
d. None of these
Q. The statement of profit or loss is prepared according to _______ method to calculate profit orloss under single entry system
a. Conversion method
b. Statement of affairs method
c. Conversion and statement of affairs method
d. None of these
Q. Under single entry system , drawings is _____ to know gross profit
a. Added
b. Deducted
c. Added and deducted
d. None of these
Q. Receipts and payment account is a summary of ______
a. Income and expenditure
b. Profit and loss
c. Cashbook
d. Balance sheet
Q. Excess of income over expenditure of non trading concern is called _______
a. Profit
b. deficit
c. Surplus
d. Loss
Q. Income and expenditure account is a type of ______
a. Balance sheet
b. Receipts and payment
c. Profit and loss account
d. None of these