Top 250+ Solved Fundamentals of Accounting MCQ Questions Answer
Q. The Consignment Accounting is made on the following basis
a. Cash basis
b. Realisation basis
c. Accrual basis
d. None of the above
Q. Joint venture account is of the nature of
a. Personal account
b. Nominal account
c. Real account
d. Suspense account
Q. If unsold goods costing 20,000 is taken over by venturer at 15,000, the joint ventureaccount will be credited by
a. 20,000
b. 15,000
c. 5,000
d. Nil
Q. Closing stock appearing in the trial balance is shown in
a. Trading A/c and Balance sheet
b. Profit and Loss A/c
c. Balance Sheet only
d. Trading A/c only
Q. Which one of the following character is not related to Financial Accounting?
a. Evaluates the financial strength of the whole business.
b. Based on monetary transactions of the enterprise
c. Reports are always subject to statutory audit.
d. Reports are as per requirement of management.
Q. Which one of the following equation is correct?
a. Owner’s Equity = Liability + Asset
b. Owner’s Equity = Asset - Liability
c. Liability = Owner’s Equity + Asset
d. Asset = Owner’s Equity + Liability
Q. Identify the Personal Account from the following
a. Salary Payable Account
b. Taxes paid account
c. Investment Account
d. Trademark Account
Q. Which of the following is a transaction of contra entry?
a. Sale goods to Y 12,500
b. Godown rent 7,000 paid by cheque.
c. Received 12,000 in full settlement of 12,500
d. Cash deposited to bank 9,000.
Q. When Trial Balance will not tally/mismatch?
a. Two errors those are compensating each other.
b. A transaction recorded twice.
c. Taking balance to the wrong side in the Trial balance
d. If an entry is totally misse
Q. An entry of 1,560 has been debited to a Debtor’s Personal Account at 1,650. It is an errorof
a. Omission
b. Commission
c. Principle
d. Compensating
Q. Amount set apart to meet loss due to bad debt is a
a. Provision
b. Appropriation
c. Reserve
d. Commission
Q. Reduction in value of asset due to its continuous use is treated as
a. Appreciation
b. Depreciation
c. Loss
d. Profit
Q. What happens when a bad debt is recovered?
a. Current asset decreases
b. Debtor’s balance decreases
c. Profit increases
d. Owner’s fund decreases
Q. Which balance is not considered for closing entries on t he basis of trial balance fortransferring to Trading and Profit & Loss Account?
a. Salary and Wages
b. Discount Received
c. Commission Paid
d. Cash in Hand
Q. Select correct journal entry to rectify an error “An amount of 10,000, withdrawn by owner for personal use debited to Trade Expenses Account”. Debit Credit
a. Drawing Account Trade Expenses a/c
b. Trade Expenses a/c Drawing Account
c. Drawing Account Cash Account
d. Trade Expenses a/c Cash Account