Home » MCQs » Financial Accounting Multiple Choice Questions#19

1) 

Which one of the following statement is wrong about Current liabilities?

A)  These are due within one year
WRONG ANSWER

B)  These are short-term loans
WRONG ANSWER

C)  A vague term for loans to be repaid by an enterprise after twelve months
RIGHT ANSWER!!!

D)  In working capital, these are deducted from assets
WRONG ANSWER


2) 

Debenture is also named as:

A)  Share WRONG ANSWER

B)  Bond RIGHT ANSWER!!!

C)  Equity WRONG ANSWER

D)  Reserve WRONG ANSWER


3) 

In which situation(s) Partnership is dissolved?


A)  In case of death of partner
WRONG ANSWER

B)  At the admission of new partner
WRONG ANSWER

C)  If any partner resigned from partnership
WRONG ANSWER

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


4) 

In calculating earning per share (EPS), the net profit is divided by which of the following?

A)  Number of ordinary shares
RIGHT ANSWER!!!

B)  Number of preference shares
WRONG ANSWER

C)  Paid up capital
WRONG ANSWER

D)  Authorized capital
WRONG ANSWER


5) 

The maximum amount with which the company is registered is called:


A)  Authorized Share Capital
RIGHT ANSWER!!!

B)  Issued Share Capital
WRONG ANSWER

C)  Paid up capital
WRONG ANSWER

D)  Called up capital
WRONG ANSWER


6) 

When the capitals are fixed, which of the following account will be debited for drawings made by a partner?

A)  Individual Partner’s Current Account
RIGHT ANSWER!!!

B)  Partner’s Cash Account
WRONG ANSWER

C)  Partner’s Bank Account
WRONG ANSWER

D)  Partners Capital Account
WRONG ANSWER


7) 

Which of the following is(are) type(s) of capital account in partnership?

A)  Fixed Capital
WRONG ANSWER

B)  Current Capital
WRONG ANSWER

C)  Fluctuating Capital
WRONG ANSWER

D)  Both Fixed Capital and Fluctuating Capital
RIGHT ANSWER!!!


8) 

Current accounts of the partners should be opened when the capitals are:

A)  Normal WRONG ANSWER

B)  Floating WRONG ANSWER

C)  Fixed RIGHT ANSWER!!!

D)  Fluctuating WRONG ANSWER

9) 

Which of the following journal entry will be recorded, if cash is drawn by a Proprietor?

A)  Proprietor’s drawings a/c (Dr.) and Cash a/c (Cr.)
RIGHT ANSWER!!!

B)  Cash a/c (Dr.) and Proprietor’s drawings a/c (Cr.)
WRONG ANSWER

C)  Proprietor’s Capital (Dr.) and Proprietor’s drawings a/c (Cr.)
WRONG ANSWER

D)  Proprietor’s drawings (Dr.) and Proprietor’s Capital a/c (Cr.)
WRONG ANSWER


10) 

Which of the following is a selling expense?

A)  Any tax/freight is paid on purchases
WRONG ANSWER

B)  General salaries paid to laborers
WRONG ANSWER

C)  Tax & freight paid on sale
RIGHT ANSWER!!!

D)  Interest on deposits
WRONG ANSWER




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