Home » MCQs » Financial Accounting Multiple Choice Questions#17

1) 

Which one of the following is NOT prepared by Non profit organizations?

A)  Profit & Loss account
RIGHT ANSWER!!!

B)  Income & Expenditure account
WRONG ANSWER

C)  Receipts & Payments account
WRONG ANSWER

D)  Balance Sheet
WRONG ANSWER


2) 

An informal accounting statement that lists the ledger account balances at a point in time and compares the total of debit balances with the total of credit balances is known as:


A)  Income Statement
WRONG ANSWER

B)  Balance Sheet
WRONG ANSWER

C)  Trial Balance
RIGHT ANSWER!!!

D)  Cash Book
WRONG ANSWER


3) 

Documentary evidence, in a specific format used to record the details of a transaction is known as:

A)  Account WRONG ANSWER

B)  Voucher RIGHT ANSWER!!!

C)  Journal WRONG ANSWER

D)  Ledger WRONG ANSWER


4) 

A summarized record of transactions related to individuals or things is called a/an


A)  Account RIGHT ANSWER!!!

B)  Voucher WRONG ANSWER

C)  Journal WRONG ANSWER

D)  Trial balance
WRONG ANSWER


5) 

When a Liability is reduced or decreased, it is recorded on the:

A)  Right or debit side of the account
WRONG ANSWER

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

C)  Left or credit side of the account
WRONG ANSWER

D)  Right or credit side of the account
WRONG ANSWER


6) 

Cost incurred for the maintenance of shop is considered as

A)  Deferred expense
WRONG ANSWER

B)  Capital expense
WRONG ANSWER

C)  Revenue expense
RIGHT ANSWER!!!

D)  Preliminary expense
WRONG ANSWER


7) 

A” sold goods for $3, 00,000 to Mr. “B”,$3, 00,000 will be treated as for business.

A)  Revenue RIGHT ANSWER!!!

B)  Net profit
WRONG ANSWER

C)  Gross profit
WRONG ANSWER

D)  Operating profit
WRONG ANSWER


8) 

Double entry accounting system includes:

A)  Accrual accounting only
WRONG ANSWER

B)  Cash accounting only
WRONG ANSWER

C)  Both cash and accrual accounting
RIGHT ANSWER!!!

D)  None of the given options
WRONG ANSWER


9) 

Which of the following financial statement shows the financial health of an Organization at a stated period of time?

A)  Balance sheet
RIGHT ANSWER!!!

B)  Trading and Profit & Loss account
WRONG ANSWER

C)  Cash Flow statement
WRONG ANSWER

D)  Statement of retained earnings
WRONG ANSWER


10) 

The records that are kept for the individual asset, liability, equity, revenue, expense, and dividend
Components are known as:

A)  Accounts RIGHT ANSWER!!!

B)  Vouchers WRONG ANSWER

C)  Journals WRONG ANSWER

D)  Statements WRONG ANSWER



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