Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. M draw a 3 months bill of exchange of ` 20,000 on T on 1st April 07. On due date T paid ` 4,000 and requested M to draw another bill of exchange for 2 months. On the due date of second bill of exchange T is declared insolvement and a dividend of 25 paisa in a rupee is expedited to be realized from his assets. Find the amount receivable from T in respect of the outstanding bill of exchange
a. 5,000 ;
b. 4,000 ;
c. 16,000 ;
d. 20,000
Q. A sends goods costing ` 1,00,000 on consignment to yield a profit of 20% on cost. What is the invoice price
a. 1,37,500 ;
b. 1,25,000 ;
c. 1,20,000 ;
d. None
Q. Under which method of depreciation annual depreciation fluctuate with the volume of production
a. Sum of Years‘ Digit Method ;
b. Production Method ;
c. Written Down Value Method ;
d. None
Q. Who bears noting charges in case of dishonor of a bill of exchange.
a. Drawer ;
b. Drawee ;
c. Both ;
d. Bank
Q. When the goods are returned by the customers within the specified time, they are recorded
a. Initially in the Sale or Return Ledger. Thereafter, in the Sale or Return Day Book
b. Initially in the Sale or Return Day Book. Thereafter, in the Sale or Return Ledger
c. Only in the Sale or Return Day Book
d. Only in the Sale or Return Ledger
Q. Long term assets being `3,00,000, current Assets `80,000, outside liabilities `1,20,000. Find ownersequity-
a. 3,50,000 ;
b. 2,60,000 ;
c. 2,00,000 ;
d. None
Q. A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31st March, it was found that 100 articles at a sale price of ` 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of stock on approval will be amounting
a. 16,000.
b. 20,000.
c. 15,000.
d. None of the above.
Q. In the Sale or Return Ledger
a. All the customers are individually debited and the sale or return account is credited with the periodical total of the Sale or Return Day Book,
b. All the customers are debited in total and the sale or return account is credited with the periodical total of the Sale or Return Day Book.
c. All the customers are individually debited and the sale or return account is also credited with the individual total of the Sale or Return Day Book.
d. None of the above.
Q. All revenue receipts and expenditure are shown in –
a. Balance Sheet ;
b. Trading and Profit and Loss A/c ;
c. Cash Flow Statement ;
d. Statement of Affairs
Q. On 1st January 2013 X paid `120,000 being rent upto 31.12.2013. If the accounts are closed on31.03.12. `90,000 will be shown as –
a. Accrued rent ;
b. Prepaid rent / Expenses ;
c. Accrued expenses ;
d. Accrued income
Q. Choose the true statement—
a. Accrued income represent income unearned but realized in cash
b. Accrued income represent income earned but not realized in cash
c. Accrued income A/c is shown on the liability side ;
d. No tax is payable on accrued income
Q. Which of these will cause change in working capital
a. Payment of Creditors in cash
b. Realization of amount due from the Debtors
c. Sale of office equipment for cash
d. Providing depreciation on Plant and Machinery
Q. Consider the following data pertaining to a firm: Credit balance as per bank column of cash book `13,000; Bank interest on overdraft appeared only in the pass book `2,600; Cheques deposited but not collected by the bank ` 5,000. The balance as per pass book is
a. 20,600 (Dr. balance) ;
b. 18,500 (Dr. balance) ;
c. 18,500 (Cr. balance) ;
d. 15,600 (Dr. balance)
Q. Consider the following data pertaining to a company for the year 2011-2012 : Opening balance of sundry debtors ` 40,000; Credit sales `4,30,000; Cash sales ` 20,000; Cash collected from debtors `4,00,000; Closing balance of sundry debtors ` 50,000 The bad debts of the company during the year are
a. 40,000 ;
b. 35,000 ;
c. 30,000 ;
d. 20,000
Q. The opening stock of a company is `60,000 and the closing stock is `70,000. If the purchases duringthe year are `2,00,000 the cost of goods sold will be
a. 2,10,000 ;
b. 2,00,000 ;
c. 1,90,000 ;
d. ) `1,80,000