Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Reserve for unexpired risk is shown under
a. Reserve and surplus
b. current liabilities
c. provision
d. none of these.
Q. Which of the following is not an advantage of having a conceptual framework of accounting ?
a. Development of accounting standards is subject less political pressure
b. A consistent balance sheet or income statement approach is used to setting standards
c. Considers the needs of all user
d. Avoids a mixed up approach to setting standards
Q. A conceptual framework for accounting is …
a. A set of financial statements
b. A set of rules governing financial reporting
c. A set of components of financial statements
d. A set of principles underpinning financial reporting
Q. Which of the following relate to financial position in a set of financial statements?
a. Assets , liabilities, income and expense
b. Assets, liabilities, income and equity
c. Income and expense
d. Income, expense and liabilities
Q. GAAP stands for
a. Generally accepted accounting principles
b. Globally accepted accounting practices
c. Generally allowable accounting principles
d. Generally allowable accounting practices
Q. The global key professional accounting body is -----
a. Internal accounting standards board
b. The institute of chartered accountants of india
c. The financial accounting standards board
d. The international accounting standards committee
Q. The original cost at which an asset or liability is acquired is known as --------
a. Amortization
b. Replacement
c. Historical cost
d. Carrying cost
Q. The international accounting standards committee was set up in -------------
a. 1982
b. 1976
c. 1967
d. 2009
Q. The process of converting foreign – subsidiary financial statements into the home currency isknown as------------
a. Transmission
b. Translation
c. Consolidation
d. Reconstruction
Q. The liability of shareholders of a company is ………………..
a. Limited
b. Unlimited
c. Uncertain
d. None of these
Q. A company is managed by its…………….
a. Partners
b. Auditor
c. Board of Directors
d. Debenture holder
Q. The process of recording financial data up to trial balance is:
a. Book keeping
b. Classifying
c. Summarizing
d. Analyzing
Q. Fixed assets are held by business for _____:
a. Converting into cash
b. Generating revenue
c. Resale
d. None of the above
Q. Which accounting concept specifies the practice of crediting closing stock to the tradingaccount?
a. Cost
b. Realization
c. Going concern
d. Matching