Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. It is generally assumed that the business will not liquidate in the near foreseeable futurebecause of
a. Periodicity.
b. Materiality.
c. Matching.
d. Going concern.
Q. Which accounting concept should be considered if the owner of a business takes goodsfrom inventory for his own personal use?
a. The prudence concept
b. The capitalisation concept
c. The money measurement concept
d. none
Q. Assets are usually valued under which basis?
a. Replacement cost
b. Historical cost
c. Net realizable value
d. none
Q. In India, a company can keep its books of accounts on?
a. Mercantile Basis
b. Accrual Basis
c. Cash Basis
d. No Basis
Q. The comparison of the results of one accounting period with that in the past is possiblewhen the following convention is followed:
a. Convention of Consistency
b. Convention of Full Disclosure
c. Convention of Materiality
d. Convention of Prudence
Q. According to this convention, important items must be recorded instead of being left outor merged with other items.
a. Convention of Consistency
b. Convention of Full Disclosure
c. Convention of Materiality
d. Convention of Prudence
Q. XYZ Ltd. follows the written down value method of depreciating machinery year afteryear due to
a. Comparability
b. Convenience
c. Consistency
d. All of the above
Q. The Accounting Standards Board was established in India by
a. Ministry of Corporate Affairs
b. Institute of Chartered Accountant of India
c. International Accounting Standards Committee
d. none
Q. The assets that can be converted into cash within a short period (i.e. 1 year or less) areknown as
a. Current assets
b. Fixed assets
c. Intangible assets
d. Investments
Q. Patents, Copyrights and Trademarks are
a. Current assets
b. Fixed assets
c. Intangible assets
d. Investments
Q. The liabilities that are payable in more than a year and are not be liquidated from currentassets
a. Current liabilities
b. Fixed liabilities
c. Contingent liabilities
d. All of the above
Q. The debts, which are to be repaid within a short period (year or less) are known as
a. Current liabilities
b. Fixed liabilities
c. Contingent liabilities
d. All of the above
Q. The Convention of Conservatism takes into account
a. All prospective profits and prospective losses.
b. All prospective profits and leaves out prospective losses.
c. All prospective losses but leaves out prospective profit.
d. None of these.
Q. Any written evidence in support of a business transaction is called:
a. Journal
b. Ledger
c. Ledger posting
d. Voucher