Home » MCQs » Financial Accounting Multiple Choice Questions#25

1) 

In case of Income and Expenditure account, Excess of income over expenses in a specified accounting period is called:


A)  Profit WRONG ANSWER

B)  Loss WRONG ANSWER

C)  Surplus RIGHT ANSWER!!!

D)  Deficit WRONG ANSWER

2) 

Which of the following assets are shown at written down value in balance sheet?

A)  Current assets
WRONG ANSWER

B)  Liquid assets
WRONG ANSWER

C)  Floating assets
WRONG ANSWER

D)  Fixed assets
RIGHT ANSWER!!!


3) 

Assets are divided in which of the following categories in balance sheet.

A)  Current assets, Long term assets and capital assets
WRONG ANSWER

B)  Current assets, Long term assets and fixed assets
RIGHT ANSWER!!!

C)  Current assets, Quick assets and business debts
WRONG ANSWER

D)  Current assets, Fixed assets and deferred cost
WRONG ANSWER


4) 

While making Profit & Loss account, Excess of expenses over income in a specified accounting period is called:

A)  Profit WRONG ANSWER

B)  Loss RIGHT ANSWER!!!

C)  Surplus WRONG ANSWER

D)  Deficit WRONG ANSWER

5) 

In cost of goods sold statement the ‘total factory cost’ is equal to:

A)  Cost of material consumed + Labor cost
WRONG ANSWER

B)  Cost of material consumed + Total factory cost
WRONG ANSWER

C)  Cost of material consumed + Conversion cost
WRONG ANSWER

D)  Cost of material consumed + Factory overhead
RIGHT ANSWER!!!


6)  The total of all costs incurred to convert raw material into finished goods is known as:

A)  Conversion cost
RIGHT ANSWER!!!

B)  Sunk cost
WRONG ANSWER

C)  Opportunity cost
WRONG ANSWER

D)  Direct costWRONG ANSWER

7) 

Which one of the following is NOT a feature of sole proprietorship business.

A)  Easy Formation
WRONG ANSWER

B)  Easy Dissolution
WRONG ANSWER

C)  Unlimited Liability
WRONG ANSWER

D)  Separate Legal Entity
RIGHT ANSWER!!!


8) 

What will be debited, If Mr. “A” started business with Rs. 2, 00,000.

A)  Cash account
RIGHT ANSWER!!!

B)  Mr. A’s account
WRONG ANSWER

C)  Business account
WRONG ANSWER

D)  Capital account
WRONG ANSWER


9) 

Normally single entry book keeping is followed by the:

A)  Small businesses only
RIGHT ANSWER!!!

B)  Governments only
WRONG ANSWER

C)  Large scale businesses only
WRONG ANSWER

D)  Both Small businesses and Governments
WRONG ANSWER


10) 

Which one of the following is INCORRECT about closing Stock?

A)  It is added into current assets
WRONG ANSWER

B)  It is deducted from Material available for use
WRONG ANSWER

C)  It becomes opening stock of next year
WRONG ANSWER

D)  It reduces the resources of business
RIGHT ANSWER!!!




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