Home » MCQs » Financial Accounting Multiple Choice Questions#11

1) 

The maximum amount with which the company is registered is called:

A)  Authorized Share Capital
RIGHT ANSWER!!!

B)  Issued Share Capital
WRONG ANSWER

C)  Paid up capital
WRONG ANSWER

D)  Called up capital
WRONG ANSWER


2) 

Depreciable value of an asset is equal to:

A)  Cost + scrap value
WRONG ANSWER

B)  Cost + market price
WRONG ANSWER

C)  Cost – scrap value
RIGHT ANSWER!!!

D)  None of the given options
WRONG ANSWER


3) 

Which of the following asset is NOT depreciated?

A)  Factory Buildings
WRONG ANSWER

B)  Office Equipment
WRONG ANSWER

C)  Plant & Machinery
WRONG ANSWER

D)  Land RIGHT ANSWER!!!


4) 

Which one of the following is NOT true about revenue expenditure?


A)  These are the running expenses of the business
WRONG ANSWER

B)  They improve the financial position of the business
RIGHT ANSWER!!!

C)  They reduce the profit of the concern
WRONG ANSWER

D)  They do not appear in the balance sheet
WRONG ANSWER


5) 

Which one of the following statement is CORRECT about Long term liabilities?

A)  These are due within one year
WRONG ANSWER

B)  These are consist of all debts, payable after 12 months
RIGHT ANSWER!!!

C)  In working capital, these are deducted from current assets
WRONG ANSWER

D)  All of the given options
WRONG ANSWER


6) 

Which of the following can offer its share to general public at large?

A)  A private limited company
WRONG ANSWER

B)  A listed company
RIGHT ANSWER!!!

C)  A partnership firm
WRONG ANSWER

D)  A trust
WRONG ANSWER


7) 

What would be the value of total factory cost, if the cost of material consumed during the month is Rs. 6,000, labor cost incurred is Rs. 2,000 and the factory over head cost is Rs. 2,500?


A)  Rs. 6,000WRONG ANSWER

B)  Rs. 4,500
WRONG ANSWER

C)  Rs. 8,000
WRONG ANSWER

D)  Rs. 10,500
RIGHT ANSWER!!!


8) 

Which of the following is CORRECT?

A)  A cash inflow means increase total cash only
WRONG ANSWER

B)  A cash inflow means increase in cash equivalent only
WRONG ANSWER

C)  A cash inflow means increase in cash and decrease in cash equivalent
WRONG ANSWER

D)  A cash inflow means increase in both cash and cash equivalent
RIGHT ANSWER!!!


9) 

Wages outstanding given in the trial balance will be treated as a (an):

A)  Asset WRONG ANSWER

B)  Liability RIGHT ANSWER!!!

C)  Revenue WRONG ANSWER

D)  Deferred expense
WRONG ANSWER


10) 

Prepaid interest given in the Trial Balance will be treated as a (an):

A)  Asset RIGHT ANSWER!!!

B)  Liability WRONG ANSWER

C)  Revenue WRONG ANSWER

D)  Deferred expense WRONG ANSWER



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