Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Debenture is a part of:
a. Owner’s capital
b. Loan capital
c. Reserves capital
d. Capital reserve
Q. Interest on Debenture is:
a. An appropriation of profit
b. A charge against the profit
c. A charge against capital reserve
d. A part of revaluation reserve
Q. Debenture is treated in books of account as:
a. Personal account
b. Nominal account
c. Real account
d. None of the above
Q. Shareholder’s funds include:
a. Equity share capital and General Reserve
b. Preference share capital and capital reserve
c. Share capital and capital reserve
d. Share capital and reserve and surplus
Q. Short term provisions in the Balance Sheet include:
a. Provision for income tax
b. Provision for dividend
c. Provision for corporate dividend tax
d. All the above
Q. The amount of capital that a company can issue at par value is called:
a. Authorized capital
b. Share premium
c. Issued capital
d. Fixed capital
Q. The appropriation account is also called:
a. Statement of changes in owner’s equity
b. Balance sheet
c. Cash Flow statement
d. Trading and Profit and Loss account
Q. A company is allowed by law to sell 200 000 shares at Rs.2.00 each. Three-quarters (3/4) of these shares were bought by the public. What is the issued share capital?
a. Rs. 100 000
b. Rs. 300 000
c. Rs. 400 000
d. Rs. 500 000
Q. The share of profit a shareholder will receive is called:
a. Dividend
b. Surplus
c. Net profit
d. Retained profit
Q. Share allotment account is a ------------------
a. Personal Account
b. Real Account
c. Nominal Account
d. Impersonal Account
Q. Premium received on issue of shares is shown on-----------.
a. Asset side of the balance sheet
b. liability side of the balance sheet
c. credit side of the P&L a/c
d. debit side of the P & L a/c
Q. Premium on issue of shares can be used for -----------.
a. distribution of dividend
b. writing off capital losses
c. transferring to general reserve
d. paying fees to directors
Q. Premium received on issue of shares cannot be utilized for ---------.
a. for the issue of bonus shares
b. for writing of preliminary expenses
c. for providing premium payable on redemption
d. for distribution of dividend