Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. The amount of credit sale is ascertained by :
a. Preparing Total Debtors’ Account
b. Prepare Trading Account
c. Preparing Statement of affairs
d. None of the above
Q. The capital at the beginning of the accounting year in case of single entry system is determinedby opening
a. Opening statement of affairs
b. Cash account
c. Bank account
d. None of the above
Q. Single entry book-keeping means
a. Incomplete records
b. Loose and defective system of recording
c. No proper record of accounting
d. All the above
Q. Statement of Affairs is a statement of
a. Statement of assets and liabilities
b. b) Ledger account balances
c. Cash and bank balances
d. Statement of assets
Q. Procedure of conversion of Single entry books into Double entry
a. Depends upon the nature of the records maintained in the single entry
b. To prepare a statement of affairs at the starting date of the selected accounting
c. Some items like allowance, bad debt, dishonoured bills must be included
d. All the above
Q. Under the net worth method, the profit can be ascertained by preparing
a. Profit and loss account
b. Cash account
c. Statement of Affairs
d. Statement of Profit
Q. The closing capital can be ascertained by preparing
a. Cash account
b. Statement of Affairs
c. Trial balance
d. Profit and Loss account
Q. Profit under the net worth method, when there are no drawings and no additional capital is thedifference between:
a. Assets and Liabilities
b. apital and Liabilities
c. Assets and Capital
d. Closing Capital and Opening Capital
Q. To ascertain the real profit, the difference between the closing capital and opening capital is adjusted by:
a. Deducting the drawings and adding the additional capital introduced
b. Adding the drawings and deducting the additional capital introduced
c. Deducting both the drawings and the additional capital
d. Adding both the drawings and the additional capital.
Q. Under single entry system the main account book kept is
a. Purchases book
b. Sales book
c. Cash book
d. Returns Inwards Book
Q. The system of keeping incomplete record is known as
a. Single entry
b. Double entry
c. Dual entry
d. None of these.
Q. In single entry system sales are computed by adding
a. Cash sales and cash received from debtors
b. Cash sales and credit sales
c. Credit sales and cash received from debtors.
d. None of these.
Q. The single entry system cannot be adopted by
a. Sole proprietorship
b. Partnership concern
c. Joint stock companies
d. All of the above
Q. The minimum share application money is
a. Rs.5 per share
b. 5% of nominal value of shares
c. 10% of nominal value of shares
d. 20% of nominal value of shares.
Q. When closing capital is more than opening capital it means
a. Profit
b. Loss
c. Withdrawal of capital
d. None of these