Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Loss on sale of machinery will be:
a. Debited on machinery A/c
b. Credited to machinery A/c
c. Credited to profit and loss A/c
d. None of them
Q. Which of the term is used to write off in reference to tangible fixed assets.
a. Depreciation
b. Depletion
c. Amortization
d. Both (B) and (C)
Q. Reduction in the book value of an asset over a period of time is called
a. Appreciation
b. Depreciation
c. Proportion
d. Depletion
Q. Which among the following is not a reason for depreciation?
a. Use of asset
b. Passage of time
c. Obsolescence
d. Repair of an asset
Q. Depreciation is charged on
a. Current asset
b. Fixed asset
c. Intangible asset
d. Current liability
Q. Depreciation helps in determining
a. Accurate level of profit
b. Increases the value of asset
c. Revenue generation
d. increase the burden of tax
Q. The asset which is an exception from depreciation is
a. Computer
b. Furniture
c. Land
d. ATM Machine
Q. Which of the following is true about the straight-line method?
a. Complex method
b. Cost of depreciation remains constant
c. Cost of depreciation changes every year
d. P&L account debited with different amount every year
Q. Value of an asset is 9 lakh, scrap value is 125000, estimated life is 10 years the cost of depreciation under straight-line method will be
a. 65000
b. 89000
c. 77500
d. 67880
Q. Shares which are not preference shares are called:
a. Sweat Equity shares
b. Right Issue
c. Equity shares
d. All of above
Q. The amount of share premium received by the company is shown in the Balance Sheet under the heading:
a. Equity and Liabilities
b. Reserves and Surplus
c. Non-Current Assets
d. All of above
Q. Return of shares voluntarily by a shareholder to the company for cancellation is called:
a. Surrender of Shares
b. Forfeiture of Shares
c. Reissue of Shares
d. All of above
Q. A situation where a company receives applications for a smaller number of shares than offered to the public for subscription is termed as:
a. Over Subscription
b. Under Subscription
c. Normal Subscription
d. All of above