Top 1000+ Solved Financial Accounting MCQ Questions Answer
Q. Which method is used under single entry system to find out the profit or loss?
a. Double entry system
b. Statement of affairs method
c. Cash book
d. All of the above
Q. Credit purchase is determined by preparing
a. Purchase Account
b. Debtor’s Account
c. Creditor’s Account
d. Cash A/c
Q. Under Incomplete records only _____ accounts are maintained.
a. personal
b. impersonal
c. real
d. nominal
Q. Single entry system contains
a. All the relevant accounts
b. Only personal accounts
c. Real accounts only
d. Personal accounts and cash book.
Q. Bill dishonored is shown in
a. Bills receivable account
b. Bills receivable account and Debtor account.
c. Debtor account.
d. None of the Above
Q. Credit sales can be ascertained by preparing
a. Creditors account
b. Debtors account
c. Both of the above
d. None of the Above
Q. Credit purchases can be ascertained by preparing
a. Creditors account
b. Debtors account
c. Both of the above
d. None of the above
Q. The advantage of a single entry system
a. It is a very simple method
b. It is less expensive
c. It is mainly suited to small business
d. All of the above
Q. The disadvantage of single entry system
a. Incomplete and Unscientific System
b. Difficulty in preparing Balance Sheet
c. True Profit or Loss cannot be ascertained
d. All of the above
Q. The content of single entry system is
a. Double entry
b. Single entry
c. No entry
d. A mixture of all the above
Q. Net Profit under single entry system is equal to
a. Capital+ Additional Capital - Drawings- Opening Capital
b. Capital - Additional Capital -Drawings - Opening Capital
c. Capital - Additional Capital + Drawings - Opening Capital
d. Capital+ Additional Capital +Drawings + Opening Capital
Q. Receipts and Payments Account generally shows:
a. A Debit balance
b. A Credit balance
c. Surplus or Deficit
d. Capital Fund
Q. Income and Expenditure Account records transactions of:
a. Revenue nature only
b. Capital nature only
c. Both revenue and capital nature
d. Income of only revenue nature and expenditure of revenue and capital nature
Q. Income and Expenditure Account reveals
a. Surplus or Deficiency
b. Cash in Hand
c. Net Profit
d. Capital Fund
Q. The amount of ‘Subscription received from members’ by a Not-for Profit Organisation is shownin which of the following:
a. Debit side of Income and Expenditure Account
b. Credit side of Income and Expenditure Account
c. Liability side of Balance Sheet
d. Assets side of Balance Sheet