Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Which of the following is a capital expenditure
a. Repair of plant and machinery ;
b. Salary paid to workers ;
c. Cost of stand by equipment;
d. Annual whitewash of the office building
Q. Which of these types of expenditure would not be treated as a Capital Expenditure
a. Acquisition of an Asset ;
b. Extension of an Asset ;
c. Improvement of the existing Asset ;
d. Maintenance of the Asset
Q. Expenses of the following nature are treated as a Revenue expenses except —
a. Expenses for day to day running of the business ;
b. Putting the new asset in working condition ;
c. Depreciation ;
d. Purchase of raw material
Q. Cash received from debtors would be deemed as ………… of funds.
a. No flow ;
b. Sources ;
c. Uses ;
d. Gain
Q. Purchase day book records
a. All cash purchases ;
b. All credit purchases ;
c. Only credit purchase of raw material or goods purchased for resale ;
d. All purchases
Q. Journal is also known by —
a. Memorandum A/c ;
b. Kaccha books ;
c. Books of original entry ;
d. Proper books
Q. Generally the term fund is used to mean the difference between
a. Current assets and current liabilities ;
b. Profit and loss A/C and Balance sheet ;
c. Current assets and non-current liabilities ;
d. Current liabilities and non-current liabilities
Q. The periodic total of purchase day book is posted to —
a. Creditors A/c ;
b. Debtors A/c ;
c. Purchase A/c ;
d. None
Q. Which of these documents is not required for Bank Reconciliation
a. Bank column of Cash Book ;
b. Bank Pass Book ;
c. Bank Statement ;
d. Trial Balance
Q. Which of these will not affect Bank and Cash balance
a. Cash received from X credited to Y;
b. Cheques issued to A but debited to B;
c. Cheques deposited and cleared on the same date ;
d. All the three
Q. Which of these items are taken into consideration for preparation of adjusted Cash Book
a. Mistake in Cash Book ;
b. Mistake in Pass Book ;
c. Cheque issued but not presented for payment ;
d. Cheques deposited but not cleared
Q. Credit balance as per Cash Book mean-
a. Surplus cash ;
b. Bank overdraft ;
c. Terms deposits with bank ;
d. None of these
Q. Debit side of Bank Pass book corresponds to –
a. Credit side of Cash Book ;
b. Debit side of Cash Book ;
c. Debit side of Trial Balance
d. Credit side of Balance Sheet
Q. Difference in Bank Balance as per Pass Book and Cash Book may arise on account of
a. Cheque issued but not presented
b. Cheque issued but dishonoured
c. Cheque deposited and credited by bank
d. All of (a) and (b) above
Q. Which of the following statements is/are true?
a. When there are cheques deposited but not collected by the banker, overdraft balance as per Pass Book will be less than that as per Cash Book
b. When the payment side of the Cash Book is undercast, overdraft balance as per Cash Book will be more than overdraft balance as per Pass Book
c. When reconciliation is to be done with the extracts of the Cash Book and Pass Book relating to the same period, the transactions which do not figure in one of the extracts are to be noted
d. Bank interest debited in the Pass Book is to be added to Overdraft Balance as per Pass Book to arrive at the Overdraft balance as per Cash Book