Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-. What would be the effect on the total asset and total liabilities in the balance sheet?
a. Assets increased by Rs.800000 and liabilities decreased by Rs.800000
b. Assets decreased by Rs.800000 and liabilities increased by Rs.800000
c. Assets increased by Rs.1000000 and liabilities increased by Rs.800000
d. Assets increased by Rs.800000 and liabilities increased by Rs.800000
Q. In which of the following cases, accounting estimates are needed?
a. Employs benefit schemes
b. Impairment of losses
c. Inventory obsolescence
d. All of the above
Q. The purpose of final accounts is to ascertain. …
a. Profit
b. The value of assets
c. The value of liabilities
d. profit or loss and financial position
Q. Final accounts are prepared…….
a. At the end of calendar year
b. on every Diwali
c. at the end of assessment year
d. at the end of accounting year
Q. The accounts that records expenses, gains and losses are
a. Personal accounts
b. Real accounts
c. Nominal accounts
d. None of the above
Q. Real accounts record:
a. Dealings with creditors or debtors
b. Dealings in commodities
c. Gains and losses
d. All of the above
Q. Errors of carry forward from one year to another year affect:
a. Personal account
b. Real account
c. Nominal account
d. Both personal & Real accounts
Q. The manufacturing account is prepared
a. To ascertain the profit or loss on the goods purchased
b. To ascertain the cost of manufactured goods
c. To show the sale proceeds from the goods produced during the year
d. None of the above.
Q. Sales made to Mahesh fir cash should be debited to
a. Cash Account
b. Mahesh
c. Sales Account
d. Purchase Account
Q. The amount salary paid to Suresh should be debited to
a. The account of Suresh
b. Salaries Account
c. Cash Account
d. none
Q. The cash discount allowed to a debtor should be credited to
a. Discount Account
b. Customer’s Account
c. Sales Account
d. Suspense Account
Q. In case of a debt becoming bad, the amount should be credited to
a. Debtor’s Account
b. Bad Debts Account
c. Sales Account
d. Suspense Account
Q. When goods are purchased for cash, the entry will be recorded in the?
a. Cash book
b. Purchases book
c. Journal
d. None
Q. All of the following are not considered cash except?
a. Postage and stamps
b. Securities
c. Investments
d. Cheque