Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Opening capital is obtained by preparing:
a. Debtors account
b. Creditors account
c. Opening statement of affairs
d. Cash account
Q. Single entry system contains
a. All the relevant accounts
b. Only personal accounts
c. Real accounts only
d. Personal account and cash book
Q. In the case of net worth method of single entry system, the net profit is ascertained by
a. preparing a Trading and Profit & Loss Account
b. comparing the capital in the beginning and at the end of the accounting period
c. adopting another method
d. none of the above
Q. The amount of credit purchases can be ascertained by preparing a
a. Total Creditors Account
b. Memorandum Trading Account
c. Opening Statement of Affairs
d. Closing Statement of Affairs
Q. When closing capital is less than opening capital, it denotes
a. profit
b. loss
c. profit, if there is no introduction of fresh capital
d. no profit-no loss
Q. Businessmen may intentionally not maintain proper accounts
a. to evade taxation.
b. to prevent themselves from destruction of books due to uncertainty.
c. as they are ignorant of the legal entity assumption.
d. as they are ignorant of the double entry accounting principles.
Q. Opening stock Rs.10,000 Sales Rs.40,000 Purchases Rs.30,000 Gross profit on sales 20% From the above figures, the amount of closing stock can be valued at
a. Rs.8,000
b. Rs.28,000
c. Rs.12,000
d. Rs.20,000
Q. If opening capital is Rs.5,000; closing capital - Rs.7,000; drawings - Rs.1,000 and additional capitalintroduced during the year is Rs.500; then, the amount of profit made would amounted to
a. Rs.1,500
b. Rs.2,500
c. Rs.2,000
d. Rs.3,000
Q. Under single entry system, certain transactions are recorded :
a. At regular intervals
b. At the end of the accounting period
c. Totally
d. None of the above
Q. Under single entry system details of
a. Expenses will not be available
b. Revenues will not be available
c. Expenses and revenues will not be available
d. None of the above
Q. Under single entry system, only personal accounts are kept and in some cases:
a. Cash account is maintained
b. Fixed assets accounts are maintained
c. Liabilities account are maintained
d. All of the above
Q. Statement of affairs is prepared for ascertaining:
a. Financial position of the business
b. Trading profit or loss
c. Capital of the owner
d. All of the above
Q. From incomplete records, it is possible to prepare
a. Ledger accounts
b. Trial balance
c. Statement of affairs
d. All of the above
Q. Single entry can be adopted by :
a. Small firms
b. Joint stock company
c. Registered co-operative societies
d. All of the above