Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. As per AS – 1, which of the following is not a Fundamental Accounting Assumptions?
a. Conservatism
b. Going Concern
c. Consistency
d. Accrual
Q. Name the book in which, entries are recorded on the basis of debit notes issued.
a. Sales book
b. Purchase Book
c. Sales Return Book
d. Purchase Return Book
Q. Name the principle involved in the classification of Assets as Fixed and Current
a. Cost Principle
b. Going Concern Principle
c. Matching Principle
d. Prudence Principle
Q. If a fixed amount is withdrawn on the first day of every month of calendar year by a partner in partnership firm, then for what period the interest on the total amount of drawings will be calculated?
a. 4.5 months
b. 5.5 months
c. 6.5 months
d. 7.5 months
Q. Del credere commission is allowed to consignee
a. for making cash sales
b. for making credit sales
c. for making extra sales
d. for undertaking risk of bad debts
Q. Any change in the accounting policy relating to inventories which has a material effect in the current or later periods should be disclosed. This is in accordance with the accounting principle of:
a. Going Concern
b. Conservatism
c. Consistency
d. Disclosure
Q. An amount spent in connection with obtaining a License for starting the factory is
a. Revenue Expenditure
b. Capital Expenditure
c. Pre-paid Expenditure
d. None of the above
Q. According to AS-15 (Revised) superannuation scheme which has relevance only tothe final salary and number of years of service is
a. Defined Benefit Scheme
b. Defined Contribution Scheme
c. Non-Contributory Scheme
d. Both (a) and (b)
Q. Expenditures in respect of certain types of assets whose usefulness does not expiresin the year of their occurrence but generally expires in the near future are called
a. Revenue Expenditure
b. Capital Expenditure
c. Deferred Revenue Expenditure
d. None of the above
Q. The main objective of average clause contained in a fire insurance policy is to
a. Encourage full Insurance
b. Discourage full Insurance
c. Encourage under Insurance
d. Encourage full Insurance and Discourage under Insurance
Q. Short working can be recouped out of
a. Minimum Rent
b. Excess of Actual Royalty over Minimum Rent
c. Excess of Minimum Rent over Actual Royalty
d. Profit and Loss Account
Q. AS-6 (revised) is applicable to which one of the following assets?
a. Goodwill
b. Live stock
c. Plantation
d. Plant and Machinery
Q. According to AS-3 (Revised) interest and dividends received in the case of a manufacturing enterprise should be classified as cash flow from
a. Operating Activities
b. Financing Activities
c. Investing Activities
d. Both (b) and (c)
Q. Provision for bad and doubtful debts is created in anticipation of actual bad debts onthe basis of:
a. Business Entity Concept;
b. Conservatism Concept;
c. Accrual Concept;
d. Full Disclosure Concept.