Home » MCQs » Financial Accounting Multiple Choice Questions#18

1) 

Revenue should be recognized or recorded when the goods are sold or services are rendered to the customer, this concept is known as:

A)  Consistency concept
WRONG ANSWER

B)  Realization Concept
RIGHT ANSWER!!!

C)  Materiality concept
WRONG ANSWER

D)  Matching concept
WRONG ANSWER


2) 

A record maintained which is measurable in the form of money, this concept of accounting is known as:

A)  Matching concept
WRONG ANSWER

B)  Consistency concept
WRONG ANSWER

C)  Money measurement concept
RIGHT ANSWER!!!

D)  Materiality concept
WRONG ANSWER


3) 

The cost of goods and services used up in the process of obtaining revenue is known as:


A)  Revenue WRONG ANSWER

B)  Expense
RIGHT ANSWER!!!

C)  Liability
WRONG ANSWER

D)  Expenditure WRONG ANSWER


4) 

Which of the following is an accounting system in which events are recorded as and when they occur?

A)  Cash Accounting
WRONG ANSWER

B)  Accrual Accounting
RIGHT ANSWER!!!

C)  Both Accrual Accounting and Cash Accounting
WRONG ANSWER

D)  None of the above
WRONG ANSWER


5) 

Recording of all financial transactions undertaken by an individual or organization is known as:

A)  Summarizing WRONG ANSWER

B)  Book-keeping
RIGHT ANSWER!!!

C)  Classification WRONG ANSWER

D)  Interpreting WRONG ANSWER


6) 

Any cheque drawn to creditor but not paid by bank will effect as follows:

A)  Cash book will show less balance & bank book will show more
RIGHT ANSWER!!!

B)  Cash book will show more balance & bank book will show less
WRONG ANSWER

C)  Cash book will show double balance
WRONG ANSWER

D)  Bank book will show double balance
WRONG ANSWER


7) 

If no distribution is made between capital and revenue expenditure then:

A)  The figure of debtors and creditors will be incorrect
WRONG ANSWER

B)  Cash or bank figure will be incorrect
WRONG ANSWER

C)  Net profit will be incorrect
RIGHT ANSWER!!!

D)  Balance sheet will not balance
WRONG ANSWER


8) 

The Policy for charging depreciation is selected by:

A)  Manufacturer WRONG ANSWER

B)  Trader WRONG ANSWER

C)  Management RIGHT ANSWER!!!

D)  Accountant WRONG ANSWER


9) 

The estimated value at which an asset is expected to be sold after the end of its useful life is called:


A)  Residual value
WRONG ANSWER

B)  Salvage Value
WRONG ANSWER

C)  Scrap Value
WRONG ANSWER

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


10) 

Mr. “A” borrowed money from bank; this transaction involves which one of the following accounts:

A)  Cash & Mr. A
WRONG ANSWER

B)  Bank & Mr. A
WRONG ANSWER

C)  Drawing & Mr. A
WRONG ANSWER

D)  Cash & Bank
RIGHT ANSWER!!!




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