Home » MCQs » Financial Accounting Multiple Choice Questions#16

1) 

Economic resources owned by a business and expected to benefit for the future operations are called:

A)  Expenses WRONG ANSWER

B)  Assets RIGHT ANSWER!!!

C)  Capital WRONG ANSWER!!!

D)  Liabilities WRONG ANSWER


2) 

Bank Reconciliation Statement is prepared by:

A)  Bankers WRONG ANSWER

B)  Accountant of the business
RIGHT ANSWER!!!

C)  Statutory auditor
WRONG ANSWER

D)  Manger
WRONG ANSWER


3) 

Expenditures incurred anually on renewal of patent are known as:


A)  Revenue Expenditures
RIGHT ANSWER!!!

B)  Capital Expenditures
WRONG ANSWER

C)  Financial Expenditures
WRONG ANSWER

D)  Operating Expenditures
WRONG ANSWER


4) 

Which of the following account will be credited, when the goods are purchased on cash?

A)  Stock account
WRONG ANSWER

B)  Cash account
RIGHT ANSWER!!!

C)  Supplier account
WRONG ANSWER

D)  Work in process account
WRONG ANSWER


5) 

If the cost of sales is $60,000, sales are $95,000 and operating expenses are $20,000 during the year, what would be the value of Gross Profit?


A)  $15,000
WRONG ANSWER

B)  $35,000
RIGHT ANSWER!!!

C)  $ 55,000
WRONG ANSWER

D)  $60,000
WRONG ANSWER


6) 

Which of the following account balance will be shown on debit side of Trial Balance? (It is assumed that all account balances are shown on normal balance).

A)  Capital account
WRONG ANSWER

B)  Sundry creditors account
WRONG ANSWER

C)  Accounts payable account
WRONG ANSWER

D)  Cash account
RIGHT ANSWER!!!


7) 

The amount of salary paid to Mr. Sohail should be debited to:

A)  Mr. Sohail account
WRONG ANSWER

B)  Salaries account
RIGHT ANSWER!!!

C)  Cash account
WRONG ANSWER

D)  Drawings account
WRONG ANSWER


8) 

Which of the following account will be credited, if business bought goods on credit from
Mr. Ali?

A)  Purchases account
WRONG ANSWER

B)  Mr. Ali account
RIGHT ANSWER!!!

C)  Cash account
WRONG ANSWER

D)  Sales account
WRONG ANSWER


9) 

The unfavorable balance of Profit and Loss account should be:


A)  Added in liabilities
WRONG ANSWER

B)  Subtracted from current assets
WRONG ANSWER

C)  Subtracted from liabilities
WRONG ANSWER

D)  Subtracted from capital
RIGHT ANSWER!!!


10) 

Which of the following is NOT an example of Current Asset?

A)  Bank Overdraft
RIGHT ANSWER!!!

B)  Accounts Receivable
WRONG ANSWER

C)  Notes Receivable
WRONG ANSWER

D)  Prepaid Expenses
WRONG ANSWER




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