Study Essentials of Financial Accounting MCQ with Answer and be ready for your online exam. This is important and previous year exam question paper.
Q1. The policy of anticipate no profit and provide for all possible losses arise due to the concept of —–
A. Consistency
B. Disclosure
C. Conservatism
D. Matching
Answer
C. Conservatism
Q2. According to which concept, the proprietor pays interest on drawings
A. Accrual concept
B. Conservatism concept
C. Entity concept
D. Dual Aspect concept
Answer
C. Entity concept
Q3. Cost concept basically recognises —–
A. Fair Market value
B. Historical cost
C. Realisable value
D. Replacement cost
Answer
B. Historical cost
Q4. If the Market value of closing Inventory is less than its cost price, inventory will he shown at —–
A. Marketable value
B. Fair Market value
C. Both
D. none
Answer
A. Marketable value
Q5. The Market price of good declined than the cost price. Then the concept that plays a key role is —–
A. Materiality
B. Going concern concept
C. Realization
D. Consistency
Answer
C. Realization
Q6. Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balance sheet will be
A. 2,00,000
B. 1,00,000
C. 3,00,000
D. 4,00,000
Answer
B. 1,00,000
Q7. Which of the following provide frame work and accounting policies so that the financial statements of different enterprises become comparable.
A. Business Standards
B. Accounting Standards
C. Market Standards
D. None
Answer
B. Accounting Standards
Q8. Which of the following factor is not considered while selecting accounting policies?
A. Prudence
B. Substance over form
C. Accountancy
D. Materiality
Answer
C. Accountancy
Q9. Debit the receiver & credit the giver is —– account
A. Personal
B. Real
C. Nominal
D. All the above
Answer
A. Personal
Q10. Cash a/c is a —–
A. Real a/c
B. Nominal
C. Personal
D. None
Answer
A. Real a/c
Q11. As per accrual concept, which of the followings is not true
A. revenue – expenditure = profit
B. revenue – profit = expenditure
C. sales + gross profit = revenue
D. revenue = profit + expenditure
Answer
C. sales + gross profit = revenue
Q12. Mr. X sold goods to Mr. Y ask Mr. X to keep the goods with him for some time
A. symbolic delivery
B. actual delivery
C. constructive delivery
D. none of these
Answer
A. symbolic delivery
Q13. If nothing is written about the accounting assumption to be followed it is presumed that
A. They have been followed
B. They have not been followed
C. They are followed to some extent
D. none of these
Answer
B. They have not been followed
Q14. Capital A/c is a —– A/c.
A. Personal
B. Real
C. Nominal
D. None
Answer
A. Personal
Q15. Cash A/c is a —– A/c.
A. Personal
B. Real
C. Nominal
D. None
Answer
B. Real
Q16. The principle “Debit the receiver and credit the giver” is related to —–
A. Personal a/c
B. Real a/c
C. Nominal a/c
D. None
Answer
A. Personal a/c
Q17. Which of the following is a Real A/c?
A. Building A/c
B. Capital A/c
C. Shyam A/c
D. Rent A/c
Answer
A. Building A/c
Q18. Valuation of stock in accounting follows the principle of cost price or —– whichever is lower.
A. Market Price
B. Average Price
C. Net realizable Value
D. None of these.
Answer
C. Net realizable Value
Q19. Which of the following is not a nominal Account?
A. Outstanding salaries Account
B. Salaries account
C. Interest paid
D. Commission received
Answer
A. Outstanding salaries Account
Q20. For every debit there will be an equal credit according to
A. Matching concept
B. cost concept
C. Money measurement concept
D. Dual aspect concept
Answer
D. Dual aspect concept
Q21. Historical cost concept requires the valuation of an asset at
A. Original cost
B. Replacement value
C. Net realizable value
D. Market value
Answer
A. Original cost
Q22. 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
Answer
C. Consistency
Q23. Profit and loss is calculated at the stage of
A. Recording
B. Posting
C. Classifying
D. Summarising
Answer
D. Summarising
Q24. 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
Answer
D. Solving tax disputes with tax authorities
Q25. 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
Answer
C. Nominal accounts
Q26. 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.
Answer
D. Expenses should be matched with the revenue of the period.
Q27. When Branch pays expenses for H.O. the following account is debited in the books of the branch —–
A. Expenses is debited
B. H.O. a/c is debited
C. Branch is debited
D. None
Answer
B. H.O. a/c is debited
Q28. Under the stock and debtor system, Branch A/c is treated as —–
A. Joint a/c
B. Nominal a/c
C. Personal a/c
D. Real a/c
Answer
D. Real a/c
Q29. When Branch assets a/c is kept in the books of H.O., the H.O. will debit following a/c for its depreciation —–
A. Branch P & L a/c
B. Depreciation a/c
C. Branch a/c
D. None
Answer
C. Branch a/c
Q30. Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 at invoice price, Rs —– will be credited to stock reserve a/c.
A. Rs 10000
B. Rs 12000
C. Rs 6000
D. Rs 12600
Answer
A. Rs 10000
Q31. HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to —–
A. 15%
B. 25%
C. 33.33%
D. 20%
Answer
B. 25%
Q32. HO sends goods to branch at invoice price after adding 25% on cost price, so profit would be —– % of invoice price
A. 33.33%
B. 40%
C. 20%
D. 25%
Answer
C. 20%
Q33. For finding the amount of sundry expenses paid by the branch, the following a/c should be prepared.
A. Computer a/c
B. Creditors
C. Petty cash a/c
D. Debtors
Answer
C. Petty cash a/c
Q34. If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the petty cash received from HO is Rs 700, then what will be the amount of sundry expenses —–
A. Rs 1200
B. Rs 800
C. Rs 700
D. Rs 500
Answer
A. Rs 1200
Q35. H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch during the year will be —–
A. Rs 5000
B. Rs 6400
C. Rs 4600
D. Rs 6000
Answer
D. Rs 6000
Q36. Which of the following branches, taking into consideration the scope of authority and responsibility, prepares its own independent final accounts?
A. Independent Branch
B. Foreign Branch
C. Dependent branch
D. Independent and Foreign branch both
Answer
A. Independent Branch
Q37. Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closing balance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?
A. Rs 10,24,000
B. Rs 8,84,000
C. Rs 11, 52,000
D. Rs 8,42,000
Answer
A. Rs 10,24,000
Q38. Goods in transit are shown in the balance sheet at —–
A. Head office
B. Branch
C. Both
D. None of above
Answer
A. Head office
Q39. H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price. What is the loading element?
A. Rs 60000
B. Rs 240000
C. Rs 48000
D. Rs 160000
Answer
C. Rs 48000
Q40. If the opening and closing balance of debtors a/c is Rs 50,000 and Rs 40,000 respectively, cash received from debtors Rs 1,10,000 and bad debts are Rs 4,000 then what will be the amount of credit sales?
A. Rs 110000
B. Rs 100000
C. Rs 102000
D. Rs 104000
Answer
D. Rs 104000
Essentials of Financial Accounting BBA MCQs
- Essentials of Financial Accounting BBA MCQs Set 1
- Essentials of Financial Accounting BBA MCQs Set 2
- Essentials of Financial Accounting BBA MCQs Set 3
- Essentials of Financial Accounting BBA MCQs Set 5
- Essentials of Financial Accounting BBA MCQs Set 6
- Essentials of Financial Accounting BBA MCQs Set 7
- Essentials of Financial Accounting BBA MCQs Set 8
