Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. The Bank Reconciliation Statement is prepared
a. To rectify the mistakes in the Cash Book
b. To arrive at the Bank Balance
c. To arrive at the Cash Balance
d. To bring out the reasons for the difference between the Balance as per Cash Book and the
Q. Which of the following statements is false?
a. When the bank column of a Cash Book shows a credit balance, it means an amount is due to the bank
b. When Pass Book shows a debit balance, it means overdraft as per Pass Book
c. While preparing Bank Reconciliation Statement, cheques paid into bank but not yet cleared are deducted from the Debit balance as per Cash Book to arrive at the balance as per Pass Book
d. A Bank Reconciliation Statement is a part of Pass Book
Q. Which of the following statements is true?
a. Bank charges increase debit balance shown as per Bank Column of the Cash Book.
b. Bank charges increase debit balance as per Bank pass book.
c. A cash sale of a non-trading asset is recorded in the journal proper.
d. Cash discount allowed by the business will appear on the debit side of the debtor‘s account.
Q. Bank reconciliation is a statement prepared to reconcile—
a. Trial balance ;
b. Cash book ;
c. Bank A/c;
d. Cash as per cash book with bank balance as per bank pass book
Q. If the whole of the issue of shares or debentures is underwritten it is known as_______________________
a. frim underwriting
b. partial underwriting
c. sole underwriting
d. complete or fully underwriting
Q. The depreciation of Fixed Assets is converted at rate________________
a. date of purchase
b. balance sheet
c. average during year
d. on the date of balance sheet
Q. On Amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company is closed by___________
a. debit to realisation
b. debit to profit & loss a/c
c. debit to equity shareholders a/c
d. credit to equity shareholders a/c
Q. A Limited Liability Partnership has ________
a. no perpetual succession
b. perpetual succession
c. no specific period
d. specified period of life
Q. If the remuneration to liquidator is payable as a percentage of collection_______________
a. exclude opening cash & bank balance
b. exclude opening cash & bank balance
c. includes opening cash & bank balance
d. exclude both opening & closing cash & bank balance
Q. If a part of the issue of share or debenrues is underwritten, it is termed as__________________-
a. firm underwriting
b. complete underwriting
c. sole underwriting
d. partial underwriting
Q. The Balance in exchange difference on transaction of export sale is transferred to _________________
a. trading a/c
b. debtors
c. sales a/c
d. profit & loss a/c
Q. 'Pooling of interest' is a method of_____________________
a. accounting of amalgamtion
b. charging depreciation
c. account of absorption
d. calculation of purchase consideration
Q. rights/ Duties of partners are governed by_______________
a. article of association
b. llp agreement
c. partnership deed
d. byelaws
Q. The proceeds of assets not specifically pledged & nthe surplus of the assets specifically pledged is first available for_________________
a. legal charges, liquidators remuneration & expenses
b. unsecured creditors
c. preferential creditors
d. preferential shareholders
Q. Out Of The following, Direct Expense Is
a. Salaries
b. carriage outward
c. rent of office building
d. carriage inward