Home » MCQs » Financial Accounting Multiple Choice Questions#4

1) 

Current accounts of the partners should be opened when the capitals are:


A)  Fixed RIGHT ANSWER!!!

B)  Fluctuating WRONG ANSWER

C)  Floating WRONG ANSWER

D)  Normal WRONG ANSWER


2) 

Which of the following is (are) type(s) of Public Limited Companies?


A)  Listed company WRONG ANSWER

B)  Non listed company
WRONG ANSWER

C)  Private limited company WRONG ANSWER

D)  Both Listed Company and non listed company RIGHT ANSWER!!!


3) 

The charter of a company which defines the limitations and powers of the company is called:


A)  The memorandum of association WRONG ANSWER

B)  Articles of association RIGHT ANSWER!!!

C)  Statutory report WRONG ANSWER

D)  Certificate of commencement WRONG ANSWER


4) 

Merchandise on hand at either the beginning or end of the reporting period is called__________.


A)  Raw material WRONG ANSWER

B)  Cost of good sold WRONG ANSWER

C)  Work in process WRONG ANSWER

D)  Inventory RIGHT ANSWER!!!


5) 

The balance sheet reported a beginning balance of $20,000 in Accounts Receivable and an ending balance of $15,000. Credit Sales of $200,000 were made during the year. Using this information, compute cash collected from customers.


A)  $205,000RIGHT ANSWER!!!

B)  $195,000WRONG ANSWER

C)  $200,000WRONG ANSWER

D)  $215,000 WRONG ANSWER


6) 

- Please choose one
 
$
Gross profit
50,000
Operating profit
 42,000
Sales
250,000
What is the amount of operating expenses
?


A)  $92,000WRONG ANSWER

B)  $62,500WRONG ANSWER

C)  $300,000WRONG ANSWER

D)  $8,000RIGHT ANSWER!!!



7) 

- Please choose one

$
Debentures
1, 50, 000
Equity Capital
2, 00,000
General Reserve
90, 000
Accumulated profit
60,000
What is debt equity ratio
               ?


A)  15: 20 (or 3:4)
WRONG ANSWER

B)  15:24 (or 5: 8)WRONG ANSWER

C)  15:29WRONG ANSWER

D)  15:35 (or 3: 7)RIGHT ANSWER!!!



8) 

A company declares a cash dividend to be paid to its stockholders next month. The effect of the transaction is to:


A)  Decrease assets and liabilities.
WRONG ANSWER

B)  Increase assets and stockholders' equity.WRONG ANSWER

C)  Decrease assets and stockholders' equity.
RIGHT ANSWER!!!

D)  Increase liabilities and decrease capital.WRONG ANSWER


9) 

Please choose one
$
Direct materials costs
80,000
Direct labor costs
50,000
Manufacturing overhead costs
60,000
Prime cost
?


A)  $130, 000RIGHT ANSWER!!!

B)  $110, 000WRONG ANSWER

C)  $140, 000 WRONG ANSWER

D)  $190, 000 WRONG ANSWER


10) 

The amount owed by debtors at the end of a month appears on the_________ side of the control   account


A)  Left side or debit RIGHT ANSWER!!!

B)  Left side or credit WRONG ANSWER

C)  Right side or debit WRONG ANSWER



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