Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Income tax paid by a sole proprietor from his business income should be:
a. Debited to the trading Account
b. Debited to the Profit and Loss Account
c. Deducted from the Capital account in the Balance Sheet
d. none
Q. The Income created but not yet received is known as:
a. Unearned Income
b. Outstanding Income
c. Acrued Income
d. none
Q. The income earned but not yet received:
a. Accrued income
b. Outstanding Income
c. Unearned Income
d. none
Q. The closing stock in adjustment is shown in:
a. Trading Account
b. Profit and Loss Account
c. Balance Sheet
d. Both (a) and (c)
Q. The opening stock is shown in:
a. Trading Account
b. Profit and Loss Account
c. Balance Sheet
d. Both (a) and (c)
Q. The trial balance checks
a. Arithmetical accuracy of books
b. The honesty of the book-keeper
c. The valuation of closing stock
d. None of the three
Q. In case a trail balance does not agree the difference is put to
a. Trading A/c
b. Profit & Loss A/c
c. Capital A/c
d. Suspense A/c
Q. Rs. 5000 spent on replacement of worn out part of the machine will be charged as:
a. Capital expenditure
b. Revenue Expenditure
c. Deferred Revenue Expenditure
d. none
Q. What is the order in which the accounting transactions and events are recorded in the books
a. Journal, Subsidiary books, Profit & Loss A/c and Ledger
b. Ledger, Journal, Balance Sheet and Profit & Loss A/c
c. Journal, Ledger, Profit & Loss A/c and Balance Sheet
d. Profit & Loss A/c, Ledger and Balance Sheet
Q. Depreciation of fixed assets is an example of:
a. Revenue Expenditure
b. Capital Expenditure
c. Deferred Revenue Expenditure
d. none
Q. Income is the output of excess or deficiency of revenue over related:
a. Expired Cost
b. Unexpired Cost
c. Sunk Cost
d. none
Q. The term ‘Business Income’ includes:
a. Unrealised Net Income
b. Realised Net Income
c. Revenue receipt
d. Going Concern
Q. The concept of conservatism ensures that the reported profit is not:
a. Under stated
b. Overstated
c. Neutral
d. Negative
Q. In accounting revenue is generally treated to be realized when goods or services are:
a. Not stated to the customers
b. Not stated to the competitors
c. Furnished to the customers
d. Not stated at all