Home » MCQs » Financial Accounting Multiple Choice Questions#20

1) 

In which of the following interim dividend is treated?


A)  In profit and Loss account
WRONG ANSWER

B)  In profit and Loss appropriation account
RIGHT ANSWER!!!

C)  On the asset side of the Balance Sheet
WRONG ANSWER

D)  In trading account
WRONG ANSWER


2) 

The statement of changes in equity basically shows the movement of:

A)  share capital during the year
RIGHT ANSWER!!!

B)  Capital reserves during the year
WRONG ANSWER

C)  Revenue Reserves during the year
WRONG ANSWER

D)  All of the given options
WRONG ANSWER


3) 

Which of the following can offer its share to general public at large?

A)  A private limited company
WRONG ANSWER

B)  A listed company
RIGHT ANSWER!!!

C)  A partnership firm
WRONG ANSWER

D)  A trust
WRONG ANSWER


4) 

In case of fixed capital accounts, other transactions such as Drawings and Profit etc. are recorded in
a separate account that is called .

A)  Fixed Capital Account
WRONG ANSWER

B)  Current Account
RIGHT ANSWER!!!

C)  Fluctuating Capital Account
WRONG ANSWER

D)  Floating Capital Account
WRONG ANSWER


5) 

Which of the following account will be debited when the interest on drawings is charged?

A)  Asset account
WRONG ANSWER

B)  Interest account
WRONG ANSWER

C)  Partner’s current account
RIGHT ANSWER!!!

D)  Profit & Loss account
WRONG ANSWER


6) 

Which of the following account will be credited when interest on capital is charged against the distribution of profit?

A)  Interest account
WRONG ANSWER

B)  Partner’s capital account
RIGHT ANSWER!!!

C)  Profit and Loss account
WRONG ANSWER

D)  Profit and loss appropriation account
WRONG ANSWER


7) 

A debit balance in the Bank Statement indicates:


A)  Cash at bank
WRONG ANSWER

B)  Bank overdraft
RIGHT ANSWER!!!

C)  Overpayment to creditors
WRONG ANSWER

D)  Cash in hand
WRONG ANSWER


8) 

Depreciable value of an asset is equal to:

A)  Cost + scrap value
WRONG ANSWER

B)  Cost + market price
WRONG ANSWER

C)  Cost – scrap value
RIGHT ANSWER!!!

D)  None of the given options
WRONG ANSWER


9) 

If a business pays rent in advance for 12 months, it will be treated as:

A)  Prepaid expenses of business
RIGHT ANSWER!!!

B)  Long term liability of business
WRONG ANSWER

C)  Fixed assets of business
WRONG ANSWER

D)  Current liability of business
WRONG ANSWER


10) 

Which of the following asset is, generally, NOT depreciated?

A)  Factory Buildings
WRONG ANSWER

B)  Office Equipment
WRONG ANSWER

C)  Plant & Machinery
WRONG ANSWER

D)  Land RIGHT ANSWER!!!



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