Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Premium on issue of shares can be used for
a. Issue of bonus shares
b. distribution of profit
c. transferring to general reserve
d. none of these.
Q. When shares are forfeited the share capital account is debited by
a. Paid up amount
b. called up amount
c. calls in arrears
d. nominal value of such shares
Q. ` 8,000 is spent of travelling expenses of the partner to a foreign trip for purchased of an asset to be used for the business is a/an —
a. Capital Expenditure ;
b. Revenue Expenditure ;
c. Revenue Loss ;
d. Capital Loss
Q. The Capital of X Ltd. was ` 55,000 as on 01.04.2012 which fell to ` 25,000 by the end of 31.03.2013. Findthe value of goods sent of consignment basis —
a. Drawings ;
b. Business losses during the period ;
c. Both ;
d. Introduction of new capital
Q. A trader has credited certain items of sales on approval aggregating ` 60,000 to Sales Account. Of these, goods of the value of `16,000 have been returned and taken into stock at cost ` 8,000 though the record of return was omitted in the accounts. In respect of another parcel of ` 12,000 (cost being `6,000) the period of approval did not expire on the closing date. Cost of goods lying with customers should be
a. 12,000.
b. 54,000.
c. 6,000.
d. None of the above.
Q. Cash sales will be recorded in —
a. Sales Day Book ;
b. Cash Book ;
c. Purchase Book ;
d. Return in Ward Book
Q. Cost of goods sold excludes —
a. Opening Stock ;
b. Closing Stock ;
c. Wages and Salary ;
d. Salesmen Commission
Q. From the following details find out the amount to be debited to Profit and Loss A/c as fresh provision for doubtful debts during 2012-13 Debtors ` 30,000 as on 31.03.2013; Bad debt during the year ` 1,500; Provision for bad debts as on 01.04.2012 ` 2,000; Provision for doubtful debts to be kept at 5% of total debtors
a. 1,500 ;
b. 1,000 ;
c. 3,000 ;
d. 2,000
Q. Two primary qualitative characteristics of Financial Statements are —
a. Understandability and Materiality ;
b. Relevance and Reliability ;
c. Relevance and Understandability ;
d. Materiality and Reliability
Q. Profit and loss on Depreciation Investment Fund A/c is transferred to —
a. Profit and Loss A/c ;
b. General Reserve A/c ;
c. Trading A/c ;
d. Capital Reserve A/c
Q. Which of these expenses does not result in cash outflow
a. Depreciation ;
b. Interest on Loan ;
c. Payment on Dividend ;
d. Donation
Q. Which of these term is not found in a Joint Venture business
a. Del Credere Commission ;
b. Co-venturer ;
c. Joint Bank A/c ;
d. Memorandum Joint Venture A/c
Q. Going run concern concept is not followed in —
a. Bank Accounts ;
b. Joint Venture Accounting ;
c. Partnership Accounting ;
d. Proprietorship Concerns