Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Under diminishing balance method,
a. The rate of depreciation falls every year
b. the amount on which deprecation is calculated falls every year
c. the rate as well as amount of depreciation falls every year.
d. the rate as well as amount of depreciation remains constant.
Q. The term ‘depletion’ applies to decrease in value of
a. Tangible asset
b. intangible asset
c. wasting asset
d. current asset.
Q. The term amortization applies to decrease in book value of
a. Intangible fixed asset
b. wasting assets
c. tangible fixed assets
d. current assets
Q. For providing depreciation on lease hold property, the appropriate method is
a. Revaluation method
b. fixed installment method
c. replacement method
d. written down value metho
Q. Accumulated depreciation is an example of
a. An expense
b. an unrecorded revenue
c. a liability
d. a contra account.
Q. Share application is classified as
a. Real account
b. personal account
c. impersonal account
d. nominal account
Q. A newly established company cannot issue shares at par
a. Par
b. premium
c. discount
d. none of these
Q. The minimum share application is
a. 1% of the face value
b. 5% of the face value
c. 10% of the face value
d. 25% of the face value.
Q. The difference between subscribed capital and called up capital
a. Paid up capital
b. uncalled capital
c. calls in advance
d. calls in arrears.
Q. The number of days required from the time of issue of the prospectus to the completeallotment should not exceed
a. 30 days
b. 60 days
c. 90 days
d. 120 days
Q. The excess price received on the par value of shares should be credited to
a. Calls in advance account
b. reserve capital
c. security premium account
d. none of these
Q. The security premium will be shown under the heading
a. Share capital
b. current liability
c. current asset
d. none of these.
Q. As per Table A of the companies act, the interest on calls in advance is
a. 5%
b. 10%
c. 6%
d. none of these.
Q. The rate of interest a company can charge on calls in arrears according to Table A of thecompanies act is
a. 10%
b. 6%
c. 5%
d. none of these