Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. The periodical total of discount column on receipts side of a Triple Column Cash Book is recorded tothe
a. Credit side of Discount Account
b. Credit side of provision for Discount Account
c. Debit side of Discount Account
d. Credit side of Debtor‘s Account
Q. Which of the following statements is false?
a. Credit side total of Discount column of Cash Book is an income
b. Credit balance of Bank Pass Book is an overdraft
c. Debit balance of Bank column of Cash Book is an Asset
d. Debit balance of Cash column of Cash Book is an Asset
Q. Purchase of Fixed Assets on credit is originally recorded in
a. Purchases Book
b. Ledger
c. Cash Book
d. Journal Proper
Q. If you start with cash book favorable balance in Bank Reconciliation Statement, which item will beadded?
a. Cheque deposited but not credited by the bank
b. Cheques omitted to be deposited into bank
c. Any amount directly collected by bank on behalf of customer but not recorded in cash book
d. Debit side of cash book was overcast
Q. The amount of Owners‘ equity in a business is not affected by
a. The percentage of Total Assets held in cash
b. Investments made in the business by the owner
c. The profitability of the business
d. The amount of dividends paid to Stock holders
Q. When a Fixed Asset is obtained as a gift, the account to be credited is
a. Goodwill A/c
b. Capital Reserve A/c
c. Donor‘s A/c
d. General Reserve A/c
Q. Which of the following is/are fixed asset(s)?
a. Closing inventory
b. Fixed Deposits in a bank
c. Patents
d. Prepaid expenses
Q. Bank Overdraft is shown as a
a. Current Liability ;
b. Contingent Liability ;
c. Unsecured Loan ;
d. Provision
Q. Which of the following is NOT a characteristic of Cash Book?
a. It has two identical sides—left hand side, the debit side and right hand side, the credit side
b. It verifies the arithmetic accuracy of posting of entries from the Journal to the Ledger
c. The difference between the total of two sides of cash book shows cash in hand
d. It always shows debit balance. It can never show credit balance
Q. If Machinery Account is debited with the amount of repairs incurred on the machine, this is anexample of
a. Compensating error
b. Error of principle
c. Error of commission
d. Error of omission
Q. Which of the following is true?
a. Bank Account is a Personal Account
b. Stock of stationery Account is a Nominal Account
c. Returns Inward Account is a Personal Account
d. Outstanding rent Account is a Nominal Account
Q. Which of the following is a liability of a firm?
a. Debit balance of analytical Petty Cash Book
b. Credit balance of Bank Pass book
c. Debit balance of Bank column of Cash Book
d. Credit balance of Bank column of Cash Book
Q. Which of the following errors is an error of principle?
a. Total sales figure was taken as ` 19,373 instead of ` 19,733
b. A discount of ` 30 allowed to Mr. A was not recorded in the discount allowed account
c. Legal charges for acquisition of building for ` 500 was entered in the Legal Expenses Account
d. 1,000 received from Mr. X was posted to the credit of Mr. M
Q. The book which all accounts of the firm are maintained is known as
a. Cash book ;
b. Ledger ;
c. Journal ;
d. Daybook
Q. ` 500 paid as cartage on new Plant and Machinery, this was debited to Carriage Inward A/c. This is an error of-
a. Principle ;
b. Omission ;
c. Commission ;
d. Compensating