Financial Accounting MCQs

Financial Accounting MCQs

Q51] Mr. X is a dealer in electronic goods (refrigerator, washing machine, air conditioners, televisions, etc.) He purchased two air conditioners and installed in his showroom. In the books of X the cost two air conditioners will be debited to

A] Drawing account

B] Capital Account

C] Fixedassets

D] Purchases account

Q52] A trader calculated his profit as Rs.150000 on 31/03/2014. It is an

A] Transaction

B] Event

C] Transaction as well as event

D] Neither transaction nor event

Q53] For every debit there will be an equal creditaccording to

A] Matching concept

B] cost concept

C] Money measurement concept

D] Dual aspect concept

Q54] Historical cost concept requires the valuation of an asset at

A] Original cost

B] Replacement value

C] Net realizable value

D] Market value

Q55] The comparison of financial statement of one year with that of another is possible only when —————-concept is followed

A] Going concern

B] Accrual

C] Consistency

D] Materiality

Also Read :-

1. Marketing Management MCQs
2.  Digital Business Management MCQs
3.  Cost Accounting MCQs
4.  Join Our Telegram Channel

Q56] Profit and loss is calculated at the stage of

A] Recording

B] Posting

C] Classifying

D] Summarising

Q57] Which of the following is not the main objective of accounting?

A] Systematic recording of transactions

B] Ascertaining profit or loss

C] Ascertainment of financial position

D] Solving tax disputes with tax authorities

Q58] An asset was purchased for Rs.1000000 with the down payment of Rs.200000 and bills accepted for Rs.800000/-What would be the effect on the total asset and total liabilities in the balance sheet?

A] Assets increased by Rs.800000 and liabilities decreased by Rs.800000

B] Assets decreased by Rs.800000 and liabilities increased by Rs.800000

C] Assets increased by Rs.1000000 and liabilities increased by Rs.800000

D] Assets increased by Rs.800000 and liabilities increased by Rs.800000

Q59] The rule debit all expenses and losses and credit all income and gains relates to

A] Personal account

B] Real account

C] Nominal accounts

D] All

Q60] Matching concept means

A] Assets = capital + liabilities

B] Transactions recorded at accrual concept

C] Anticipate no profit but recognize all losses

D] Expenses should be matched with the revenue of the period.

Also Read :-

1. Marketing Management MCQs
2.  Digital Business Management MCQs
3.  Cost Accounting MCQs
4.  Join Our Telegram Channel