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Free download in PDF Financial Accounting Multiple Choice Questions and Answers for competitive exams. These short objective type questions with answers are very important for Board exams as well as competitive exams. These short solved questions or quizzes are provided by Gkseries.
(1)
Deewali advance given to an employee is
[A]
Revenue Expenditure
[B]
Capital Expenditure
[C]
Not an Expenditure
[D]
Deferred Revenue Expenditure
Answer: Not an Expenditure
(2)
The process of recording financial data upto trial balance is
[A]
Classifying
[B]
Summarising
[C]
Analyzing
[D]
Book keeping
(3)
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]
Revenue & transferred to P & L a/c
[B]
Capital & transferred to capital reserve
[C]
Capital & transferred to P & L a/c
[D]
Revenue & transferred to general reserve
Answer: Revenue & transferred to P & L a/c
(4)
Which of the following is wrong?
[A]
Rent is a personal account, outstanding rent is nominal account
[B]
All real and personal accounts are transferred to balance sheet
[C]
Nominal accounts are transferred to P &L account
[D]
Each account is opened separately in ledger
Answer: Rent is a personal account, outstanding rent is nominal account
(5)
Is root cause for financial accounting
[A]
Social accounting
[B]
Management accounting
[C]
Human resource accounting
[D]
Stewardship accounting
Answer: Stewardship accounting
(6)
Fixed assets are held by business for
[A]
Generating revenue
[B]
Converting into cash
[C]
Resale
[D]
None of the above
Answer: Generating revenue
(7)
Which accounting concept specifies thepractice of crediting closing stock to the trading account?
[A]
Matching
[B]
Cost
[C]
Realisation
[D]
Going concern
(8)
Amount spent to increasing the earning capacity is a ...... expenditure
[A]
Capital
[B]
Deferred revenue
[C]
Capital Loss
[D]
Revenue
(9)
Change in the capital A/c of proprietor may occur due to
[A]
Capital Introduced
[B]
Loss incurred
[C]
Profit earned
[D]
All of theabove
(10)
Provision for discount on debtors is calculated on the amount of debtors.
[A]
After deducting provision for doubtful debts
[B]
Before deducting provision for doubtful debts
[C]
Before deducting actual debts and provision for doubtful debts
[D]
After adding actual bad and doubtful debts
Answer: After deducting provision for doubtful debts
(11)
Which of the following is incorrect?
[A]
Outstanding expenses -current asset
[B]
Good will intangible asset
[C]
Sundry debtors -current asset
[D]
Loose tools tangible fixed asset
Answer: Outstanding expenses -current asset
(12)
The nature of financial accounting is:
[A]
Historical
[B]
Analytical
[C]
Social
[D]
Forward looking
(13)
Which of the following factor is not considered while selecting accounting policies?
[A]
Accountancy
[B]
Prudence
[C]
Substance over form
[D]
Materiality
(14)
As per accrual concept, which of the followings is not true
[A]
sales + gross profit = revenue
[B]
revenue –profit = expenditure
[C]
revenue –expenditure = profit
[D]
revenue = profit + expenditure
Answer: sales + gross profit = revenue
(15)
If nothing is written about the accounting assumption to be followed it is presumed that
[A]
They have not been followed
[B]
They are followed to some extent
[C]
They are followed to some extent
[D]
None
Answer: They have not been followed
(16)
Valuation of stock in accounting follows the principle of cost price or which ever is lower.
[A]
Net realizable Value
[B]
Market Price
[C]
Average Price
[D]
None of these
Answer: Net realizable Value
(17)
Which of the following is not a nominal Account?
[A]
Salaries account
[B]
Interest paid
[C]
Commission received
[D]
Outstanding salaries Account
Answer: Outstanding salaries Account
(18)
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]
Fixedassets
[B]
Drawing account
[C]
Capital Account
[D]
None of the above
(19)
For every debit there will be an equal creditaccording to
[A]
Dual aspect concept
[B]
Matching concept
[C]
Money measurement concept
[D]
cost concept
Answer: Dual aspect concept
(20)
Historical cost concept requires the valuation of an asset at
[A]
Replacement value
[B]
Net realizable value
[C]
Market value
[D]
Original cost
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