Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Chandu & Co.'s Account is a
a. Real Account
b. Nominal Account
c. Representative Personal Account
d. Artificial Personal Accounts
Q. Purchase of a laptop for office use wrongly debited to Purchase Account. It is an error of
a. Omission
b. Commission
c. Principle
d. Misposting
Q. Which of the following term is most suitable for writing off Patent?
a. Depletion
b. Amortization
c. Depreciation
d. All of the above
Q. Memorandum Joint Venture Account is prepared when
a. the separate set of books is maintained for Joint Venture.
b. each Co-venturer keeps records of all transactions.
c. each Co-venturer keeps records of their own transactions only.
d. All of the above cases
Q. Which of the following commission is allowed by the consignor to the consignee to encourage the consignee for putting-up hard work in introducing new product in the market?
a. Del-credere Commission
b. Over-riding Commission
c. Hard work Commission
d. Ordinary Commission
Q. If Ram's acceptance which was endorsed by us in favour of Saleem is dishonoured, then the amount will be debited in our books to
a. Saleem
b. Ram
c. Bills Receivable Account
d. None of the above
Q. In case of a Club, the excess of expenditure over income is called as
a. Surplus
b. Deficit
c. Capital Fund
d. Investment in Fixed Assets
Q. A Charitable Institution has 250 members with a annual subscription of `5,000 each. The subscription received during 2018-19 were `11,25,000, which include ` 65,000 and `25,000 for the years of 2017-18 and 2019-20 respectively. Amount of outstanding subscription for the 2018-19 will be
a. 90,000
b. 1,25,000
c. 2,15,000
d. 1,90,000
Q. When stock is valued at cost in one accounting period and at lower of cost and Net realizable value in another accounting period
a. Prudence Principle conflicts with Consistency Principle.
b. Matching Principle conflicts with Consistency principle.
c. Consistency Principle conflicts with Accounting Period Assumption.
d. None of the above
Q. Materiality Principle is an exception to the
a. Consistency principle
b. Full disclosure Principle
c. Accounting Period Assumption
d. Prudence Principle
Q. In a Cash Book Debit balance of `112 brought forward as credit balance of ` 121, while preparing a Bank Reconciliation Statement taking the balance as per Cash Book as the starting point:
a. 112 to be added
b. 121 to be added
c. 233 to be added
d. 112 to be subtracted
Q. ______________ represents a potential obligation that could be created depending onthe outcome of an event.
a. Internal Liability
b. Current Liability
c. Contingent Liability
d. Non-current Liability
Q. Opening Debtors, Collection from Debtors and Discount Allowed were `3,15,000; `18,30,000 and `35,000 respectively. If the closing debtors were 20% of credit sales of the period then closing debtors and credit sales would be
a. 3,51,667 and`17,58,333
b. 3,63,333 and `18,16,667
c. 3,87,500 and `19,37,500
d. 3,10,000 and `15,50,000