Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. In depreciation calculation the life of an asset is:
a. A certain figure
b. An estimate
c. A predetermined figure for all fixed assets
d. none
Q. Depreciable amount plus residual value of a fixed asset:
a. Depreciation expenses
b. Accumulated depreciation
c. Cost of the fixed asset
d. Future economic benefits of a fixed asset
Q. Cost of fixed asset minus accumulated depreciation expenses of the fixed asset:
a. Book value of a fixed asset
b. Market value of a fixed asset
c. Historical cost of a fixed asset
d. Recoverable amount of a fixed asset
Q. The estimate about useful life of a fixed asset:
a. Can never be changed
b. Can be changed
c. all
d. none
Q. XYZ has imported a machine from abroad. Which of the following is not the element of a machine’s cost?
a. Purchase price of machine
b. Import duty
c. Dismantling charges
d. Refundable Tax
Q. Which of the following fixed asset is not depreciated in ordinary circumstances:
a. Plant and Machinery
b. Building
c. Land
d. Equipment
Q. In calculation of depreciation, all of the following items are actually estimates except:
a. Useful Life
b. Residual Value
c. Historical Cost
d. Salvage Value
Q. Depreciation means
a. Depletion
b. Amortization
c. Saving of Cash
d. Reduction in the books value of the fixed asset
Q. Provision for Depreciation is
a. An appropriation of profit
b. A charge against the profit
c. Accumulation of reserves
d. Writing of losses
Q. A machine is purchased at a cost of Rs. 5,00,000. Its useful life is 5 years with a scrap value of Rs. 50,000. It is sold for Rs. 40,000 at the end of 5 years. The profit or loss on the sale would be:
a. Profit Rs. 15,000
b. Loss Rs. 5,000
c. No Profit no Loss
d. Loss of Rs. 1,000
Q. Depreciation of loose tools is provided by
a. Replacement method
b. Revaluation method
c. Diminishing value method
d. Provisions for depreciation process
Q. Which of the following is not one of the five areas into which social accounting can be divided?
a. Environmental auditing
b. Managerial social accounting in profit oriented organisations
c. National income social accounting
d. Social auditing
Q. Human resource accounting attempts to place a value on:
a. The operations of the personnel department
b. The whole workforce
c. Training undertaken over a period of time
d. Recruitment processes
Q. Which of the following is not a reason that explains why more firms are reporting onsocial matters?
a. Media power
b. Increased efficiency
c. Encouragement from governments through company law
d. Consumer's views
Q. The amount of depreciation charged on a machinery will be debited to:
a. Machinery Account
b. Depreciation Account
c. Cash Account
d. Repair Account