Home » MCQs » Financial Accounting Multiple Choice Questions#23

1) 

In accounting, which of the following account will be credited if the bad debts are recovered in cash?

A)  Cash a/c
WRONG ANSWER

B)  Bad debt recovered a/c
RIGHT ANSWER!!!

C)  Doubtful debts a/c
WRONG ANSWER

D)  Provision for bad debts a/c
WRONG ANSWER


2) 

Which of the following is (are) NOT shown in balance sheet of sole proprietor?

A)  Fixed assets
WRONG ANSWER

B)  Current liabilities
WRONG ANSWER

C)  Profit sharing ratio
RIGHT ANSWER!!!

D)  Long term assets
WRONG ANSWER


3) 

Net profit = Gross profit - _________

A)  Operating Expenses
RIGHT ANSWER!!!

B)  Product Cost
WRONG ANSWER

C)  Deferred Expenses
WRONG ANSWER

D)  Direct Cost
WRONG ANSWER


4) 

In firms cash flow statements, which of the following would appear as a cash inflow?

A)  The repayments of a bank loan
WRONG ANSWER

B)  The depreciation charge for the current year
WRONG ANSWER

C)  Money received as result of selling fixed assets
RIGHT ANSWER!!!

D)  The difference between the valuations of old and new fixed assets
WRONG ANSWER


5) 

Amount generated from sales in a business is called:

A)  Income RIGHT ANSWER!!!

B)  Net Income
WRONG ANSWER

C)  Gross Profit
WRONG ANSWER

D)  Operating profit
WRONG ANSWER


6) 

Money spent to acquire or upgrade physical assets is known as:

A)  Revenue Expense
WRONG ANSWER

B)  Capital Expense
RIGHT ANSWER!!!

C)  Administrative Expense
WRONG ANSWER

D)  Operating Expense
WRONG ANSWER


7) 

An example of financing activities in the context of cash flow statement is:

A)  Fixed capital expenditure
WRONG ANSWER

B)  Long-term deposit
WRONG ANSWER

C)  Financial charges paid
RIGHT ANSWER!!!

D)  Dividend paid
WRONG ANSWER


8) 

Fixed Asset (WDV) + __________ = Total assets Employed

A)  Total liabilities
WRONG ANSWER

B)  Total assets
RIGHT ANSWER!!!

C)  Current Assets
WRONG ANSWER

D)  Working capital
WRONG ANSWER



9) 

Which of the following is NOT correct regarding depreciation?

A)  It is another name of Impairment
WRONG ANSWER

B)  It refers to the increase in value of asset
WRONG ANSWER

C)  It refers to the end life of an asset
WRONG ANSWER

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


10) 

Salaries paid in advance should be shown on the:

A)  Asset side of the Balance Sheet
RIGHT ANSWER!!!

B)  Liability side of the Balance Sheet
WRONG ANSWER

C)  Credit side of the Trading account
WRONG ANSWER

D)  All of the given options
WRONG ANSWER




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