Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. These reserves are created out of revenue profits of the business for a specific purpose:
a. Specific Reserves
b. General Reserves
c. Capital Reserves
d. none
Q. These are the reserves created only to strengthen the financial position or the business and to keep the funds available for any future contingency or expenditure that may be required:
a. Specific Reserves
b. General Reserves
c. Capital Reserves
d. none
Q. These reserves are created out of capital profits:
a. Specific Reserves
b. General Reserves
c. Capital Reserves
d. none
Q. These reserves are not shown in the balance sheet:
a. Specific Reserves
b. Capital Reserves
c. Secret reserves
d. none
Q. A reserve is created but its identity is merged with some other account or group of accounts so that the existence of the reserve is not known:
a. Capital reserves
b. Secret Reserves
c. Undisclosed Reserves
d. none
Q. The value of asset can be reduced to zero under this method ____
a. Straight line method
b. Written down value method
c. Annuity method
d. Depreciation fund method
Q. Provision for depreciation account appears on the _____
a. Asset side
b. Liability side
c. P & L account debit side
d. P & L account credit side
Q. If the asset is sold, the provision for depreciation relating to the asset sold is transferred to:
a. Asset account
b. Liability account
c. P & L account
d. Trading account
Q. Depreciation is charged on___
a. Continuous basis
b. Temporary basis
c. Daily basis
d. Monthly basis
Q. Loss of usefulness occasioned by improved production methods is known as____
a. Physical deterioration
b. Obsolescence
c. Disuse
d. Inadequacy
Q. Depreciation applies to___
a. Current assets
b. Wasting assets
c. Intangible assets
d. Fixed assets
Q. Depletion applies to____
a. Current assets.
b. Wasting assets
c. Intangible assets
d. Fixed assets
Q. Income tax authorities recognize this method ___
a. Straight line method.
b. Written down value method.
c. Annuity method.
d. Depreciation fund method
Q. Amortization applies to
a. Current assets.
b. Wasting assets.
c. Intangible assets.
d. Fixed assets
Q. Mines quarries oilfields and forest are example of
a. Fixed assets.
b. Current assets.
c. Wasting assets.
d. Intangible assets.