Home » MCQs » Financial Accounting Multiple Choice Questions#7


Which of the following documents contains rules and regulations for internal management of the company?

A)  Memorandum of Association WRONG ANSWER

B)  Articles of Association

C)  Prospectus

D)  Statutory Declaration WRONG ANSWER


Which of the following is NOT a cash inflow?

A)  Sale of fixed asset WRONG ANSWER

B)  Issue of debentures WRONG ANSWER

C)  Cash from business operation WRONG ANSWER

D)  Purchase of fixed asset RIGHT ANSWER!!!


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

A)  A decrease in debtors over a period of time WRONG ANSWER

B)  Money received as a result of issuing new shares WRONG ANSWER

C)  Money received as result of selling fixed assets WRONG ANSWER

D)  The payments for purchases made during the year RIGHT ANSWER!!!


Credit sales appear on the __________ side of the Debtors control account.

A)  Left side or credit WRONG ANSWER

B)  Left side or debit WRONG ANSWER

C)  Right side or debit WRONG ANSWER

D)  Right side or credit RIGHT ANSWER!!!


The financial year of Atif Brothers & Co. is closed on June 30, 2009. Total cash sales are $150,000, credit sales are $180,000 and total receipts are $250,000. Credit receipts will be:

A)  $150,000WRONG ANSWER

B)  $100,000RIGHT ANSWER!!!




Which of the following is NOT a financial statement?

A)  Audit report RIGHT ANSWER!!!

B)  Balance sheet WRONG ANSWER

C)  Income statement WRONG ANSWER

D)  Cash flow statement WRONG ANSWER


Sunset tours has $3,500 account receivable from the Del Mar Rotary. On January 20, the Rotary makes a partial payment of $2,100 to Sunset Tours. The journal entry made on January 20 by Sunset Tours to record this transaction includes:

A)  A debit to the Cash Received account of $3,500WRONG ANSWER

B)  A credit to the Accounts Receivable account of $2,100RIGHT ANSWER!!!

C)  A debit to the Cash account of $1,400WRONG ANSWER

D)  A debit to the Accounts Receivables account of $1,400WRONG ANSWER


Which of the following is quoted company?

A)  Private Limited Company WRONG ANSWER

B)  Public Limited Company WRONG ANSWER

C)  Listed company RIGHT ANSWER!!!

D)  Non Listed Company WRONG ANSWER


Which of the following can be utilized to set off any loss on revaluation?

A)  Capital reserve WRONG ANSWER

B)  General reserve WRONG ANSWER

C)  Revaluation reserve

D)  None of the given options WRONG ANSWER


Which of the following capital is required for the registration of the company?

A)  Issued capital WRONG ANSWER

B)  Subscribed capital WRONG ANSWER

C)  Authorized capital RIGHT ANSWER!!!

D)  Reserve capital WRONG ANSWER

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