Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Accounting Standard 1 requires the significant Accounting Policies to
a. Be suitable disclosed ;
b. Be circulated to all the shareholders separately ;
c. Be notified ;
d. Be changed from time to time
Q. To convert the accounts prepared on cash system of accounting into mercantile system ofaccounting, which of these adjustments is not necessary
a. Reconciliation of cash with bank
b. Adjustment of prepaid expenses and income received in advance
c. Adjustment of outstanding expenses and income statement
d. Distinction between revenue and capital expenditure/income
Q. Trade discount is given to
a. Boost sales ;
b. Make payment early before due date ;
c. To evade tax ;
d. All the three
Q. Which types of errors will effect net profit
a. Affecting Nominal Account ;
b. Affecting Personal Account ;
c. Affecting Real Account
d. None
Q. Raw material and components purchased and used at the time of installation of new Plant andMachinery will be debited to
a. Plant and Machinery A/c ;
b. Raw Material Consumed A/c ;
c. Purchase A/c ;
d. Profit ;and Loss A/c
Q. Under estimation of useful life of a depreciable asset will lead to —
a. Overstatement of profit ;
b. Excess charging of depreciation every year ;
c. Over valuation of assets in Balance Sheet ;
d. Short charging of depreciation every year
Q. Which of these expenses are not included in valuation of closing stock lying with the consignee
a. Freight and insurance ;
b. Loading and unloading incurred ;
c. Godown rent ;
d. Custom duties
Q. X purchased a new plant and machinery for ` 50,000 on 01.01.2012. The machinery was received in the factory on 10.01.2012 and was installed and put to use on 18.01.2012. Depreciation on the plant and machinery will commence from
a. 01.04.2011 ;
b. 01.04.2012 ;
c. 01.01.2012 ;
d. 18.01.2012
Q. Under sales on return or approval basis, the ownership of goods is passed only
a. When the retailer gives his approval
b. If the goods are not returned within specified period.
c. Both (a) and (b)
d. None of the above
Q. To obtain the amount of credit sales made during an accounting period, which account is generallyused in single entry and incomplete records?
a. Payable Account ;
b. Total Revenue Account ;
c. Debtors Account ;
d. Stock Account
Q. The receipts and payments account of a non-profit organization is a
a. Nominal Account ;
b. Real Account ;
c. Income Statement Account ;
d. Financial Account
Q. The capital of a non-profit organization is generally known as
a. Equity ;
b. Accumulated Fund ;
c. Finance Reserve ;
d. Cash Fund
Q. If an employee of the business files a legal suit on business, it is considered in thebooks as
a. Legal Expense
b. Liability
c. Contingent Asset
d. Contingent Liability
Q. At the end of the accounting year the capital expenditures are shown in the
a. assets side of the Balance Sheet.
b. liabilities side of the Balance Sheet.
c. debit side of the Profit and Loss A/
d. credit side of the Profit and Loss A/c.
Q. Which of the following is not a method of charging depreciation?
a. Sinking Fund Method
b. Sum of years Digit Method
c. Working hours Method
d. Asset's Life-cycle Method