Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. If average inventory is `1,25,000 and closing inventory is `10,000 less than openinginventory then the value of closing inventory will be
a. 1,35,000
b. 1,15,000
c. 1,30,000
d. 1,20,000
Q. The Accommodation bill is drawn
a. to finance actual purchase or sale of goods.
b. to facilitate trade transmission.
c. when both parties are in need of funds.
d. None of the above
Q. ________ is equal to estimated selling price less the estimated costs of completionand the estimated costs necessary to make the sale.
a. Net Realizable value
b. Cost of Conversion
c. Cost of Purchase
d. None of the above
Q. _______ are investments which are held beyond the current period as to sale ordisposal.
a. Non-current Investments
b. Current Investments
c. Current Liabilities
d. None of the above
Q. An obligation which may or may not materialize is a/an _______________.
a. Loss
b. Asset
c. Contingent Liability
d. None of the above
Q. ________________ voucher denotes payment of cash.
a. Cash Payment
b. Cash Receipt
c. Bank Payment
d. All of the above
Q. Which of the following is an example of Capital Expenditure?
a. Inventory of raw materials, work-in-progress and finished goods;
b. Insurance premium;
c. Taxes and legal expenses;
d. None of the above.
Q. Which of the following errors is not disclosed by a Trial Balance?
a. Errors of Omission
b. Errors of Commission
c. Compensating Errors
d. All of the above
Q. ___________ is specially suited to mines, oil wells, quarries, sandpits and similar assetsof a wasting character.
a. Depletion
b. Depreciation
c. Amortisation
d. Dilapidation
Q. The following account has a credit balance
a. Plant and Equipment A/c
b. Loans A/c
c. Purchase A/c
d. None of the above
Q. From the following details estimate the capital as on 31.03.2017. Capital as on01.04.2016 - `4,10,000. Drawings `40,000, Profit during the year ` 50,000
a. 4,10,000
b. 4,50,000
c. 4,20,000
d. 4,00,000
Q. AB Ltd. has signed at 31st December, 2017 the Balance Sheet date, a contract where the Total Revenue is estimated at ` 15 Crores and Total Cost is estimated at ` 20 Crores. No work began on the contract. Is the Contractor required to give any accounting effect for the year ended 31st December, 2017?
a. Recognize expected loss of `5 Crores
b. Recognize `15 Crores as Profit
c. No entry
d. None of the above
Q. Which of the following item does not match with receipts and payments account?
a. It is a summarized cash book
b. Transactions are recorded in it on cash basis
c. It records revenue transactions only
d. It serves the purpose of a real account
Q. Which of the following is/ are the basic features of a Joint Venture
a. The profit or loss on joint venture is shared between the co-venturers in the agreed ratio
b. The co-venturers may or may not contribute initial capital
c. The JV is dissolved once the purpose of the business is over
d. All of the above