Home » MCQs » Financial Accounting Multiple Choice Questions#26

1) 

Which of the following particular is NOT included in journal voucher?

A)  Name of organization
WRONG ANSWER

B)  Bank receipt number
RIGHT ANSWER!!!

C)  Debit amount
WRONG ANSWER

D)  Credit amount
WRONG ANSWER


2) 

Which one of the following is NOT true about Capital Expenditure?

A)  They create future benefits
WRONG ANSWER

B)  They are incurred to acquire fixed assets
WRONG ANSWER

C)  They improve the financial position of the business
WRONG ANSWER

D)  They reduce the profit of the concern
RIGHT ANSWER!!!


3) 

In an account if debit side > credit side, the balance is known as the:

A)  Negative Balance
WRONG ANSWER

B)  Debit balance
RIGHT ANSWER!!!

C)  Positive Balance
WRONG ANSWER

D)  Credit balance
WRONG ANSWER


4) 

What is the next step to Journalizing in Accounting cycle?


A)  RecordingWRONG ANSWER

B)  PostingRIGHT ANSWER!!!

C)  BalancingWRONG ANSWER

D)  AnalyzingWRONG ANSWER


5) 

Which of the following is NOT a characteristic of Joint Stock Company


A)  Separate Legal EntityWRONG ANSWER

B)  Limited Liability of shareholdersWRONG ANSWER

C)  Easy formationRIGHT ANSWER!!!

D)  Common SealWRONG ANSWER


6) 

Which of the following is NOT considered a part of financial statements?

A)  General Journal
RIGHT ANSWER!!!

B)  Balance SheetWRONG ANSWER

C)  Profit and Loss accountWRONG ANSWER

D)  None of the given optionsWRONG ANSWER


7) 

Outsider’s claim against the assets of the business is called

A)  LiabilityRIGHT ANSWER!!!

B)  ExpenseWRONG ANSWER

C)  IncomeWRONG ANSWER

D)  CapitalWRONG ANSWER


8) 

An expenditure whose benefit is finished or enjoyed immediately is called:

A)  ExpenseRIGHT ANSWER!!!

B)  LiabilityWRONG ANSWER

C)  CostWRONG ANSWER

D)  IncomeWRONG ANSWER


9) 

Increase in an expense is recorded on the:

A)  left or credit side of the accountWRONG ANSWER

B)  Right or debit side of the accountWRONG ANSWER

C)  Left or debit side of the account
RIGHT ANSWER!!!

D)  Right or credit side of the accountWRONG ANSWER


10) 

Which of the following is Not a part of General Ledger?

A)  Activity BookRIGHT ANSWER!!!

B)  Purchase Return BookWRONG ANSWER

C)  Purchase BookWRONG ANSWER

D)  Sales Book
WRONG ANSWER




Browse All Financial Accounting MCQs+