Top 1000+ Solved Financial Accounting MCQ Questions Answer
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. Goods are sent to the Branch at cost plus 25%. The loading on invoice price is:
a. 20%;
b. 25%;
c. 30%;
d. None of the above.
Q. Actuarial valuation relates to:
a. Banking company;
b. Electric Supply Company;
c. Insurance Company;
d. None of the above.
Q. Survey expenses for marine insurance claim must be
a. Added to claim;
b. Added to legal charges;
c. Added to administrative charges;
d. None of the above.
Q. A profit on sale of furniture of a club will be taken to
a. Cash Account;
b. Receipts and Payment Account;
c. Income and Expenditure Account;
d. Profit and Loss Account.
Q. Realisation Account is a:
a. Representative Personal Account;
b. Artificial Personal Account;
c. Real Account;
d. Nominal Account.
Q. Bank shows the provision for income tax under the head
a. Contingency Accounts;
b. Other liabilities and provisions;
c. Contingent liabilities;
d. Borrowings.
Q. Bank Reconciliation Statement is:
a. Ledger Account
b. Part of cash book
c. A separate statement
d. A subsidiary of Journal
Q. A non-performing asset is:
a. Money at call and short notice.
b. Cash balance with bank
c. An asset that ceases to generate income
d. None of the above
Q. Which of the following is not a Qualitative characteristicof Financial Statement?
a. Cost Principle
b. Understandability
c. Relevance
d. Reliability
Q. Name the book in which, entries are recorded on the basis of credit notes issued.
a. Sales Book
b. Purchase Book
c. Sales Return Book
d. Purchase Return Book
Q. Exception to consistency principle is
a. Cost Principle
b. Going Concern Principle
c. Matching Principle
d. Prudence Principle
Q. The balance in consignment account shows
a. Amount receivable from consignee
b. Amount payable to consignee
c. Profit/ loss on consignment
d. Closing stock with consignee
Q. Provision for bad debts is
a. Real Account
b. Nominal account
c. Personal account
d. None of the above