Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. The concept that business is assumed to exist for an indefinite period and is notestablished with the objective of closing down is referred to as
a. Money Measurement concept
b. Going Concern concept
c. Full Disclosure concept
d. Dual Aspect concept
Q. In the hire purchase system interest charged by vendor is calculated on the basis of
a. Outstanding cash Price
b. Hire purchase Price
c. Installment amount
d. None of the above
Q. Bad debts Recovered `750. It will be
a. Credited to Bad debts A/c
b. Credited to debtor‘s personal A/c
c. Debited to creditor‘s personal A/c
d. Credited to bad debts recovered A/c
Q. Which of the following is a function of journal:
a. Analytical Function
b. Recording Function
c. Historical Function
d. All of the above
Q. The out flow of funds to acquire an asset that will benefit the business for more than one accounting period is referred to as —
a. Miscellaneous Expenditure
b. Revenue Expenditure
c. Capital expenditure
d. Deferred Revenue Expenditure
Q. The cost of a Fixed Assets of a business has to be written off over its
a. Natural Life
b. Accounting Life
c. Physical Life
d. Estimated Economic Life
Q. Receipts and Payments Account records
a. Only revenue nature receipts
b. Only capital nature receipts and payment
c. Only revenue nature receipts and payments
d. Both the revenue and capital nature receipts and payments
Q. Excess of minimum rent over royalty is known as
a. Maximum rent
b. Excess workings
c. Short workings
d. Deficiency of actual royalty
Q. If any transaction is not recorded in the primary books the same is recorded in_______
a. Journal Proper
b. Sales Day Book
c. Cash Book
d. None of the above
Q. Which of the following is not a feature of Trial Balance
a. It is a list of debit and credit balances which are extracted from various ledger accounts;
b. It does not prove arithmetical accuracy which can be determined by audit;
c. It is not an account. It is only a statement of account;
d. All the transactions are primarily recorded in this book, hence it is the primary book of entry.
Q. The person in whose favour the bill is endorsed is known as __________.
a. Endorsee
b. Drawee
c. Drawer
d. None of the above
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.
Q. The following account has a credit balance
a. Plant and Equipment A/c
b. Purchase Returns A/c
c. Purchase A/c
d. None of the above
Q. When Sales = `3,60,000, Purchase = ` 3,20,000, Opening Stock = `68,000 and rate of the Gross Profit is 20% on cost, the Closing Stock would be
a. 1,00,000
b. 44,000
c. 46,000
d. None of the above