Home » MCQs » Financial Accounting Multiple Choice Questions#6

1) 

Which of the following is non- profit organization?


A)  Sole proprietorship WRONG ANSWER

B)  Partnership WRONG ANSWER

C)  Limited company
WRONG ANSWER

D)  Trust RIGHT ANSWER!!!


2) 

Commercial Accounting is based on:


A)  Single entry book keeping WRONG ANSWER

B)  Double entry book keeping RIGHT ANSWER!!!

C)  Both single and double entry book keeping WRONG ANSWER

D)  Cash basis of book keeping WRONG ANSWER


3) 

An Asset that is NOT physical in nature is called


A)  Intangible Asset RIGHT ANSWER!!!

B)  Liquid Asset WRONG ANSWER

C)  Current Asset WRONG ANSWER

D)  Fixed Asset WRONG ANSWER


4) 

In cost of goods sold statement, the ‘cost of material consumed’ is equal to:


A)  Opening raw material stock+ Purchases
     – Ending raw material stockRIGHT ANSWER!!!


B)  Opening raw material stock- Purchases
     + Ending raw material stockWRONG ANSWER


C)  Ending raw material stock+ Opening stock
     - Purchases WRONG ANSWER


D)  Ending raw material stock+ Opening stock
     + Purchases WRONG ANSWER



5) 

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


A)  $10,500RIGHT ANSWER!!!

B)  $6,000WRONG ANSWER

C)  $8,000WRONG ANSWER

D)  $4,500WRONG ANSWER


6) 

In cost of goods sold statement the ‘cost of goods manufactured’ is equal to:


A)  Total factory cost + Opening work in process
     – Ending work in process RIGHT ANSWER!!!


B)  Total factory cost + Opening work in process
     + Ending work in process WRONG ANSWER


C)  Total factory cost - Opening work in process
     + Ending work in process WRONG ANSWER


D)  Ending work in process +Total factory cost
     – Opening work in process WRONG ANSWER



7) 

Which of the following entry is passed to record discount allowed in control account?


A)  Discount Allowed (Dr) and Debtors Control A/c (Cr)RIGHT ANSWER!!!

B)  Discount Allowed (Dr) and Debtors A/c (Cr)WRONG ANSWER

C)  Debtors Control A/c (Dr) and Discount Allowed (Cr)WRONG ANSWER

D)  Debtors A/c (Dr) and Discount Allowed (Cr)WRONG ANSWER


8) 

Which of the following entry will be recorded, if a cheque deposited is dishonored by bank?


A)  Bank Account (Dr.) and Debtor's Account (Cr.)WRONG ANSWER

B)  Debtor's Account (Dr.) and Bank Account (Cr.)RIGHT ANSWER!!!

C)  Creditor Account (Dr.) and Bank Account (Cr.)WRONG ANSWER

D)  Creditor's Account (Dr.) and Bank Account (Cr.)
WRONG ANSWER



9) 

In which of the following auditor’s remuneration payable is shown?


A)  In balance sheet under the head of current liabilities RIGHT ANSWER!!!

B)  In income statement under the administrative expense WRONG ANSWER

C)  In the statement of changes in equityWRONG ANSWER

D)  In Cash flow statement under investing activities WRONG ANSWER


10) 

In which of the following interim dividend is treated?


A)  In profit and Loss account WRONG ANSWER

B)  In profit and Loss appropriation account RIGHT ANSWER!!!

C)  On the asset side of the Balance Sheet WRONG ANSWER

D)  In trading account WRONG ANSWER



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