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Financial Accounting MCQ

CO-OPERATIVE THEORY AND PRACTICE MCQ
Accounting

( Best 100+ ) Financial Accounting MCQs

by Mr. DJ
written by Mr. DJ

Financial Accounting MCQs

Financial Accounting MCQs

Financial Accounting MCQs

Q1] Which accounting concept satisfy the valuation criteria

a] Going concern, Realisation, Cost

b) Going concern, Cost, Dual aspect

c) Cost, Dual aspect, Conservatism

d) Realisation, Conservatism, Going concern.

 

Q2] A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?

a) Going concern

b) Cost

c) Accrual

d) Money measurement

 

Q3] In which of the following cases, accounting estimates are needed?

a) Employs benefit schemes

b) Impairment of losses

c) Inventory obsolescence

d) All of the above

 

Q4] Deewali advance given to an employee is

a) Revenue Expenditure

b) Capital Expenditure

c) Deferred Revenue Expenditure

d) Not an Expenditure

 

Q5]A firm has reported a profit of Rs.1,47,000 for the year ended 31-3-2014 after taking into consideration the following items.

(i) The cost of an asset Rs.23,000 has been taken as an expense

(ii) The firm anticipated a profit of Rs.12,000 on the sale of an old furniture

(iii) Salary of Rs.7,000 outstanding for the year has not been taken into account.

(iv) An asset of Rs.85,000 was purchased for Rs.75,000 and was recorded in the books at Rs.85,000. What is the correct amount of profit to be reported in the books?

a) Rs.1,47,000

b) Rs. 1,51,000

c) Rs.1,63,000

d) Rs.1,41,000

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Q6]The process of recording financial data upto trial balance is

a) Book keeping

b) Classifying

c) Summarising

d) Analyzing

 

Q7] Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is ______ nature and profit on sale is

a) Capital & transferred to capital reserve

b) Revenue & transferred to P & L a/c

c) Capital & transferred to P & L a/c

d) Revenue & transferred to general reserve

 

Q8] In income measurement & recognisation of assets & liabilities which of the following concepts goes together ?

(a) Periodicity, Accural, Matching

(b) Cost, Accural, matching

(c) Going concern, cost, Realization

(d) Going concern, Periodicity, Reliability

 

Q9] Interpretation means

(a) Explanation of meaning and significance of the data in Financial Statements.

(b) Concerned with preparation and presentation of classified data

(c) Systematic analysis of recorded data

(d) Methodical classification of data given in Financial Statements.

 

Q10] A trader purchases goods for Rs. 2500000, of these 70% of goods were sold during the year. At the end of 31st December 2009, the market value of such goods were Rs. 500000. But the trader recorded in his books for Rs. 750000. Which of the following concept is violated.

(a) Money measurement

(b) Conservatism

(c) Consistency

(d) None of these

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Accounting

[ Best ] Financial Accounting MCQ

by Mr. DJ
written by Mr. DJ

Financial Accounting – Financial Accounting MCQ

Accountancy is referred to as the process of recording financial transactions that take place in a business. The Accounting process involves summarizing, reporting and analyzing the information to be used by various users of Accounting information.Following are some of the Accounting multiple choice questions and answers that will help the students in brushing up their understanding of the concept of Accounting.

Financial Accounting - Financial Accounting MCQ

Financial Accounting MCQ

Question 1

Accounting furnishes data on

  1. A) Income and cost for the managers
  2. B) Financial conditions of the institutions
  3. C) Company’s tax liability for a particular year
  4. D) All the above

Answer: D

Question 2

Long term assets having no physical existence but, possessing a value are called

  1. A) Intangible assets
  2. B) Fixed assets
  3. C) Current assets
  4. D) Investments

Answer: A

Question 3

The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as

  1. A) Current assets
  2. B) Fixed assets
  3. C) Intangible assets
  4. D) Investments

Answer: A

Question 4

Copyrights, Patents and Trademarks are,

  1. A) Current assets
  2. B) Fixed assets
  3. C) Intangible assets
  4. D) Investments

Answer: C

Question 5

The debts which are to be repaid within a short period (a year or less) are referred to as,

  1. A) Current Liabilities
  2. B) Fixed liabilities
  3. C) Contingent liabilities
  4. D) All the above

Answer: A

Question 6

Gross profit is

  1. A) Cost of goods sold + Opening stock
  2. B) Excess of sales over cost of goods sold
  3. C) Sales fewer Purchases
  4. D) Net profit fewer expenses of the period

Answer: B

Question 7

Net profit is computed in the

  1. A) Profit and loss account
  2. B) Balance sheet
  3. C) Trial balance
  4. D) Trading account

Answer: A

Question 8

In order to find out the value of the closing stock during the end of the financial year we,

  1. A) do this by stocktaking
  2. B) deduct the cost of goods sold from sales
  3. C) deduct opening stock from the cost of goods sold
  4. D) look in the stock account

Answer: A

Question 9

Which of these best explains fixed assets?

  1. A) Are bought to be used in the business
  2. B) Are expensive items bought for the business
  3. C) Are items which will not wear out quickly
  4. D) Are of long life and are not purchased specifically for resale

Answer: D

Question 10

The charges of placing commodities into a saleable condition should be charged to

  1. A) Trading account
  2. B) P & L a/c
  3. C) Balance Sheet
  4. D) None of the above

Answer: B

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