Financial Accounting MCQs

Financial Accounting MCQs

Q11] Which of the following is wrong?

(a) All real and personal accounts are transferred to balance sheet

(b) Nominal accounts are transferred to P &L account

(c) Each account is opened separately in ledger

(d) Rent is a personal account, outstanding rent is nominal account

 

Q 12] is root cause for financial accounting

(a) Stewardship accounting

(b) Social accounting

(c) Management accounting

(d) Human resource accounting

 

Q 13] If nothing is given in the financial statements aboutthe three accounting assumptions then it is to be treated as it

a) Is assumed that it is not followed

b) Is assumed to be followed

c) Is assumed to be followed to some extent

d) None of the above

 

Q14] The proprietor of the business is treated as creditor for the capital introduced by him due to_____ concept.

a) Money measurement

b) Cost

c) Entity

d) Dual aspect

 

Q15] Fixed assets are held by business for _____

a) Converting into cash

b) Generating revenue

c) Resale

d) None of the above

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Q16] Which accounting concept specifies thepractice of crediting closing stock to the trading account?

a) Cost

b) Realisation

c) Going concern

d)Matching

 

Q17] Amount spent to increasing the earning capacity is a ______ expenditure

a) Capital

b) Revenue

c) Deferred revenue

d) Capital Loss

 

Q18] Change in the capital A/c of proprietor may occur due to ______

a) Profit earned

b) Loss incurred

c) Capital Introduced

d)All of theabove

 

Q19] Consistency with reference to application of accounting procedures means

a) All companies in the same Industry should use identical accounting procedures

b) Income & assets have not been overstated

c)Accounting methods & procedures shall be followed uniform basis year after year

d) Any accounting method can be followed as per convenience

 

Q20] If one of the cars purchased by a car dealer is used for business purpose, instead of resale, then it should be recorded by_____

a) Dr Drawing A/c & Cr Purchases A/c

b) Dr Office Expenses A/c & Cr Motor Car A/c

c) Dr Motor Car A/c & Cr Purchases A/c

d) Dr Motor Car & Cr Sales A/c

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