Home » MCQs » Financial Accounting Multiple Choice Questions#8


Which of the following capital is taken up by the general public

A)  Subscribed capital WRONG ANSWER

B)  Issued capital RIGHT ANSWER!!!

C)  Authorized capital WRONG ANSWER

D)  Reserve capital WRONG ANSWER


Accounts Receivable & Inventory are the examples of:

A)  Current assets RIGHT ANSWER!!!

B)  Liquid assets WRONG ANSWER

C)  Fixed assets WRONG ANSWER

D)  Capital assets WRONG ANSWER


Which of the following account will be credited in the books of XYZ Co. Ltd, if the business purchased a vehicle though cheque?

A)  Vehicle account WRONG ANSWER

B)  Business account WRONG ANSWER

C)  Bank account RIGHT ANSWER!!!

D)  Debtors accountWRONG ANSWER


In which of the following condition a company will have positive working capital?

A)  If current assets > current liabilities RIGHT ANSWER!!!

B)  If current Assets < current Liabilities WRONG ANSWER

C)  If current assets = current liabilities WRONG ANSWER

D)  If current assets < current liabilities WRONG ANSWER


Which of the following is an example of direct materials cost?

A)  Polish and finishing material for chair WRONG ANSWER

B)  A piece of wood for the production of chair RIGHT ANSWER!!!

C)  Production worker’s wages WRONG ANSWER

D)  Depreciation expenses WRONG ANSWER


Bank Statement is a record of transactions between the bank and the holder of:

A)  A foreign currency account WRONG ANSWER

B)  A current account WRONG ANSWER

C)  A saving account WRONG ANSWER

D)  All of the given options RIGHT ANSWER!!!


Which of the following is CORRECT if depreciation is given in trial balance?

A)  It has already been deducted from
     concerned asset account

B)  It will be shown an expense in income
     statement only

C)  It will not be deducted from concerned
     asset in Balance Sheet WRONG ANSWER

D)  All of the given options are correct WRONG ANSWER


The persons who sign articles and memorandum of the company and contribute in the initial share capital of the company are called:

A)  Subscribers WRONG ANSWER

B)  Shareholders RIGHT ANSWER!!!


D)  Directors WRONG ANSWER


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!!!


What does a credit balance in a partner’s current account represent to a business?

A)  Current Assets RIGHT ANSWER!!!

B)  Current Liability WRONG ANSWER

C)  Long-term liability WRONG ANSWER

D)  Share of profit WRONG ANSWER

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