Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Sales are equal to
a. Cost of goods sold plus profit
b. cost of goods sold minus gross profit
c. gross profit minus cost of goods sold
d. none of these
Q. Interest on drawings is
a. An expenditure for the business
b. an expense for the business
c. a gain for the business
d. a loss for the business
Q. Which of the following is not a fixed asset
a. Motor cycles
b. furniture
c. inventory
d. free hold property
Q. Which of the following is a current liability
a. A five year bank loan
b. workmen compensation fund
c. bank overdraft
d. dividend equalization
Q. In the case of net worth method of single entry system, the net profit is ascertained by
a. Preparing trading and profit and loss account
b. comparing opening and closing capital
c. preparing
d. none of these
Q. Capital at the beginning of the year is ascertained by preparing
a. Cash account
b. opening statement of affairs
c. total creditors account
d. total debtors account.
Q. The amount of opening stock can be ascertained by preparing
a. Memorandum trading account
b. total creditors account
c. total debtors account
d. opening statement of affairs.
Q. The closing balance in the creditors account can be ascertained from the
a. Cash account
b. total creditors account
c. closing statement of affairs
d. none of these.
Q. the depreciation charged on an asset is debited to
a. asset account
b. depreciation account
c. cash account
d. none of these
Q. in case of straight line method, the amount of deprecation
a. fluctuate every year,
b. decreases every year
c. increases every year
d. remains same every year
Q. amortization is related to
a. Tangible fixed asset
b. intangible assets
c. any fixed asset
d. none of these.
Q. Bank reconciliation statement is a part of —
a. Cash book ;
b. Trial balance ;
c. Auditors report ;
d. None of these