Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Tick the correct match 1. Current Asset 1. Depreciation 2. Nominal A/c 2. Land 3. Non Depreciable Asset 3. Insurance A/c 4. Non Cash Expense 4. Prepaid Rent A/c
a. (1,2), (2,3), (3,4), (4,1)
b. (1,3), (2,1), (3,4), (4,2)
c. (1,4), (2,2), (3,1), (4,3)
d. (1,4), (2,3) (3,2), (4,1)
Q. Revenues affect net income —
a. in the period during which they are earned
b. in the period when they are collected
c. in the period when they are accounted for
d. any of the above three which occur first
Q. Which of these Accounts are not closed in a Trading A/c
a. Sales A/c ;
b. Purchase A/c ;
c. Wages A/c ;
d. Depreciation A/c
Q. Undercasting of the total of Sales A/c will affect —
a. Gross Profit and Loss ;
b. Debtors A/c ;
c. Closing Stock ;
d. Working Capital
Q. ` 5,500 incurred on sundry expenses inadvertently recorded in the books of account as ` 550. This isan example of —
a. Fraud ;
b. Error of Commission ;
c. Error of Principle ;
d. Compensatory Error
Q. How does depreciation effect basic accounting equation
a. Leads to decreases in assets and shareholders equity
b. Leads to decrease in asset only
c. Leads to increase in liability and decrease in assets
d. Leads to decrease in shareholders equity
Q. ——— Principle specifies that cost or expenses should be recorded at the same time as the revenue towhich they correspond
a. Going run concern ;
b. Matching ;
c. Historical Cost ;
d. Prudence
Q. X a debtor is declared insolvent and only 25 paise in a rupee is recovered from his estate. If X owes `5,000 to Y, Y would debit Cash A/c by —
a. 5,000 ;
b. 25 ;
c. 1,250 ;
d. 2,500
Q. In question no. 351, Bad Debts A/c would be debited by —
a. 3,600 ;
b. 3,750 ;
c. 1,250 ;
d. 4,000
Q. It is supposed that on 31-12-20012, the sundry debtors are amounted to Rs. 40,000. On the basis of past experience, it is estimated that 5 % of the sundry debtors are doubtful. It is also suppose that during the year 2013 actual bad debts were Rs. 1,600. What entry will pass to create provision for doubtful debts?
a. Profit & Loss a/c Rs. 2,000 (Dr) & Provision for doubtful debts a/c Rs. 2,000 (Cr)
b. Provision for doubtful debts a/c Rs. 2,000 (Dr) & Profit & Loss a/c Rs. 2,000 (Cr)
c. Provision for doubtful debts a/c Rs. 1,600 (Dr) & Profit & Loss a/c Rs. 1,600 (Cr)
d. Profit & Loss a/c Rs. 1,600 (Dr) & Provision for doubtful debts a/c Rs. 1,600 (Cr)
Q. From the following details estimate the capital as on 1.1.2012, Capital as on 31.12.2012 ` 2,40,000,drawing ` 20,000, Profit during the year ` 25,000
a. 2,35,000 ;
b. 2,25,000 ;
c. 2,20,000 ;
d. 2,00,000
Q. ` 1,250 paid for the residential telephone bill of the proprietor which of these accounts will be detailed
a. Household A/c ;
b. Drawing A/c ;
c. Telephone A/c ;
d. None
Q. When a large number of articles are sent on a sale or return basis,, it is necessary to maintain
a. Sale journal
b. Goods returned journal
c. Sale or return journal
d. None of the above.
Q. On 31st March, goods sold at a sale price of ` 30,000 were lying with customer, Mohan to whom these goods were sold on 'sale or return basis' and recorded as actual sales. Since' no consent was received from Mohan, the adjustment entry was made presuming goods were sent on approval at a profit of cost plus 20%. In the balance sheet, the stock with customers account will be shown at `
a. 30,000.
b. 24,000.
c. 20,000.
d. 25,000.