Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. According to the money measurement concept, the following will be recorded in thebooks of account of the business:
a. Health of Managing Director of the company
b. Quality of company’s goods
c. Value of Plant & Machinery
d. Strike by employees
Q. The global key professional accounting body is —
a. The International Accounting Standards Committee
b. The International Accounting Standards Board
c. The Institute of Chartered Accountants of India
d. The Financial Accounting Standards Board
Q. The underlying assumption that assumes that the life of a company can be divided into artificial time periods is:
a. Periodicity
b. Going concern
c. Economic entity
d. Monetary unit
Q. The primary objective of the matching principle is to:
a. Provide timely information to external decision-makers
b. Provide full disclosure
c. Recognize expenses in the same period as the related revenue
d. All of the above
Q. The term "compound entry" means that the journal entry has
a. More than two accounts involved in the entry
b. A debit amount greater than the credit amount
c. A credit amount greater than the debit amount
d. Only one debit, but two credits
Q. The convention of conservatism is applicable ___________________
a. In providing for discount on creditors
b. In making provision for bad and doubtful debts
c. Providing for depreciation
d. none
Q. Creditors for goods purchase come within the category of________________
a. Fixed Liabilities
b. Current Liabilities
c. Capital
d. none
Q. Money spent on heavy advertising, whose benefit is continuing for three years to come, isa __________.
a. Capital Expenditure
b. Revenue expenditure
c. Deferred Revenue Expenditure
d. none
Q. A deduction allowed to the buyers from the gross catalogue price on making bulk purchases is termed as ____________
a. Trade discount
b. Quantity discount
c. Cash discount
d. None of the above
Q. What type of expenditure is shown as asset in balance sheet? Capital expenditure
a. Revenue expenditure
b. Deferred revenue expenditure
c. Capitalized expenditure
d. none
Q. A business firm is separate and distinct from its owners is the assumption under which of the following accounting concepts:
a. Business Entity
b. Going Concern Entity
c. Money Measuring Entity
d. Accounting Period concept
Q. General rules that are used as a guide in accounting and as a basis of accounting practices are called:
a. Generally Accepted Accounting Practices
b. Basic Accounting Conventions
c. Accounting and Financing Principles
d. Accounting Principles