Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Loose tools are shown in the balance sheet under
a. Fixed asset
b. investment
c. current asset
d. miscellaneous expenditure
Q. Discount on shares and debentures are shown in
a. P/L Appropriation a/c
b. asset side of the b/s
c. liability side of the b/s
d. none of these.
Q. Calls in arrear Is
a. Shown as current asset
b. deducted from share capital
c. shown as current liability
d. shown under miscellaneous expenditure
Q. The amount set aside to meet the loss of bad debt is
a. Provision
b. liability
c. reserve
d. contingent liability
Q. In the case of joint stock company, goodwill is sown on the asset side under the head
a. Fixed asset
b. investment
c. current asset
d. miscellaneous expenditure
Q. Advance payment of tax should be shown on the
a. Debit side of P/L a/c
b. debit side of P/L appropriation a/c
c. asset side of the B/S
d. liability side of the B/S
Q. Which of the following items will be taken in the P/L a/c below the line
a. Provision for taxation
b. transfer to sinking fund
c. contribution to PF
d. preliminary expenses written off
Q. Scrip dividend means
a. Unclaimed dividend
b. arrears of dividend
c. dividend paid other than cash
d. cash dividend
Q. Which of the following would not appear in a limited company’s appropriation a/c
a. Transfer to revaluation reserve
b. proposed taxation
c. interim dividend
d. transfer to general reserve.
Q. As per the rules framed under the companies Act, 1956, if the dividend proposed by a company is 12% of the paid up capital, the amount to be transferred to reserve must not beless than
a. 5% of current year profit
b. 7.5% of the current year profit
c. 10% of the current year profit
d. 2.5% of the current year profit.
Q. Banks show the provision for income tax under the head
a. Contingent assets
b. contingent liabilities
c. other liabilities and provisions
d. borrowings.
Q. Rebate on bills discounted is
a. An item of income
b. a liability
c. income received in advance
d. accrued income.
Q. Choose the correct pairSol:
a. Cash and Bank sub system – Deals with receipts and payments of cash
b. Inventory subsystem – deals with recording of sales
c. Payroll Accounting sub system – deals with the preparation of final accounts
d. Accounts receivable sub system – deals with expenses
Q. It refers to the system of recording, organising, summarising, analysing, interpreting andcommunicating the financial data of a business.Sol:
a. Manual Accounting
b. Computerised Accounting
c. Auditing
d. Human Resource Accounting