Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. The amount of money owed by a business to outsider is called _____
a. Capital
b. Asset
c. Liabilities
d. None of these
Q. The properties and possession of a business are termed as ________
a. Asset
b. Capital
c. Liabilities
d. None of these
Q. Prepaid expenses appearing in trial balance will appear in _____
a. Profit and loss account debit side
b. Profit and loss account credit side
c. Balance sheet asset side
d. Balance sheet liability side
Q. Net profit / loss is transferred to the ______ account
a. Asset account
b. Liabilities account
c. Capital account
d. None of these
Q. All ________ expenses are recorded in the trading account
a. Indirect
b. Direct
c. Direct and indirect
d. None of these
Q. ________ expenses are shown in the profit and loss account
a. Indirect
b. Direct
c. Direct and indirect
d. None of these
Q. Gross Profit is the difference between
a. Net Sales and Cost of goods sold ;
b. PAT and Dividends ;
c. Net Sales and Cost of production ;
d. Net Sales and Direct costs of productions
Q. Process of spreading cost 3. Profit and Loss A/c4. Check arithmetic accuracy 4. Accounting for Fixed Asset
a. (1, 2), (2, 3), (3, 4), (4,1)
b. (1, 3), (2, 4), (3, 2), (4, 1)
c. (1, 4) (2, 2) (3, 1), (4, 3)
d. (1, 4), (2, 3), (3, 2), (4, 1)
Q. The basic concepts related to Balance Sheet are
a. Cost Concept
b. Business Entity Concept
c. Accounting Period Concept
d. Both (a) and (b) above
Q. The basic concepts related to P & L Account are
a. Realization Concept
b. Matching Concept
c. Cost Concept
d. Both (a) and (b) above
Q. Which of the following is (are) characteristic(s) of Bad Debt?
a. It is a definite loss to the business ;
b. It must be shown in Profit & loss account ;
c. No provision is necessary for it ;
d. All of the given options
Q. Only the significant events which affect the business must be recorded as per the principle of
a. Separate Entity
b. Accrual
c. Materiality
d. Going Concern
Q. P & L Account is prepared for a period of one year by following [Hints: (c) P&L A/C is prepared for a period of one year by following the concept of Accounting Period.]
a. Consistency Concept
b. Conservatism Concept
c. Accounting Period Concept
d. Cost Concept
Q. If the Going Concern concept is no longer valid, which of the following is true?
a. All prepaid assets would be completely written-off immediately
b. Total contributed Capital and Retained Earnings would remain unchanged
c. Intangible Assets would continue to be carried at net Amortized historical cost
d. Land held as an Investment would be valued at its realizable value