Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Entry representing the reversal or cancellation of an entry on the other side is called?
a. Closing entry
b. Contra entry
c. Bank overdraft
d. Adjusting entry
Q. The debit side discount column of three column cash book is called?
a. Trade discount
b. Cash discount
c. Discount allowed
d. Discount received
Q. The total of the ‘Discounts Allowed’ column in the Cash Book is posted to?
a. The debit of the Discounts Received account
b. The debit of the Discounts Allowed account
c. The credit of the Discounts Allowed account
d. The credit of the Discounts Received account
Q. Which of the following explains the imprest system of operating petty cash?
a. Weekly expenses cannot exceed a set amount
b. The exact amount of expenses is reimbursed at intervals to maintain a fixed float
c. All expenses out of the petty cash must be properly authorized
d. Regular equal amounts of cash are tr
Q. Which of the following payment is made from petty cash?
a. Purchase of non-current asset
b. Payment to creditors
c. Cash deposited into bank
d. Payment of postage & telegrams
Q. Which of the following transactions does not decrease cash?
a. Purchasing inventory for cash
b. Accruing operating expenses
c. Paying trade accounts payable
d. Purchasing securities that are not cash equivalents
Q. Depreciation is the process of:
a. Apportionment of the cost of the asset over its useful life
b. Valuation of assets
c. Maintenance of asset in a state of efficiency
d. none
Q. The profit on depreciation policy is transferred to:
a. Depreciation reserve account
b. Profit and Loss Account
c. Asset account
d. none
Q. In case of Annuity Method, the amount of depreciation is:
a. Increasing every year
b. Fixed for all the year
c. Decreasing every year
d. none
Q. For providing depreciation on leasehold property, the appropriate method of depreciationis:
a. Replacement Method
b. Revaluation Method
c. Fixed Installment Method
d. none
Q. Depletion Method of depreciation is used in:
a. Cattle, Loose tools etc.
b. Mines, Quarries etc.
c. Machinery, Building, Furniture et
d. none
Q. The interest lost on the acquisition of an asset is taken into account in calculating depreciation in:
a. Depletion Method
b. Annuity Method
c. Diminishing Balance Method
d. none
Q. In this method depreciation is charged on the cost of asset every year:
a. Straight Line Method
b. Written Down Value Method
c. Sum of Years digit method
d. none
Q. AS 6 revised is an accounting standard for:
a. Inventory Valuation
b. Depreciation Accounting
c. Revenue recognition
d. None of the above