Home » MCQs » Financial Accounting Multiple Choice Questions#9

1) 

An uncollectible account receivable is also termed as


A)  Asset WRONG ANSWER

B)  Uncollectible asset WRONG ANSWER

C)  Uncollectible accounts expense WRONG ANSWER

D)  None of the given options RIGHT ANSWER!!!


2) 

Suppose a firm has 100 debtors, and each of them owes exactly $150 at the start of June. During June each debtor has paid-off exactly $100 on their account, either by cash or by cheque. What should be the revised total debtors figure


A)  $5,000RIGHT ANSWER!!!

B)  $9,850WRONG ANSWER

C)  $25,000WRONG ANSWER

D)  $14,900WRONG ANSWER


3) 

Income tax expense of Eden Corporation shows a debit balance of Rs.7,000 in its unadjusted trial balance and Rs.7,600 in adjusted trial balance. Which of the following account will be debited in adjusting entry?


A)  Income tax payable WRONG ANSWER

B)  Prepaid income tax WRONG ANSWER

C)  Income tax expense RIGHT ANSWER!!!

D)  Income tax paid
WRONG ANSWER


4) 

The financial statement that captures both the current operating result and the associated changes in the balance sheet is:


A)  Statement of retained earnings WRONG ANSWER

B)  Statement of financial position RIGHT ANSWER!!!

C)  Statement of cash flows
WRONG ANSWER

D)  Statement of changes in equity WRONG ANSWER


5) 

In statement of cash flows, all of the following items are considered as financing activity, except:


A)  Payment made for short term debts RIGHT ANSWER!!!

B)  Cash received from issuance of shares WRONG ANSWER

C)  Cash received from issuance of bonds WRONG ANSWER

D)  Collections on loans WRONG ANSWER


6) 

Which of the following business publishes the Financial Statements?

A)  Sole-Proprietorship WRONG ANSWER

B)  Partnership WRONG ANSWER

C)  Trust WRONG ANSWER

D)  Public Limited Company
RIGHT ANSWER!!!



7) 

Which financial statement show what a business owes at a particular point in time?

A)  A cash flow statement WRONG ANSWER

B)  The bank statement for the business WRONG ANSWER

C)  A balance sheet RIGHT ANSWER!!!

D)  A statement of retained earnings WRONG ANSWER


8) 

The Balance Sheet item that represents the resources invested by the owner is known as:

A)  A’s account (Dr.) and B’s account (Cr.)RIGHT ANSWER!!!

B)  B’s account (Dr.) and A’s account (Cr.)
WRONG ANSWER

C)  Sales account (Dr.) and B’s account (cr.)
WRONG ANSWER

D)  B’s account (Dr.) and Sales account (Cr.)
WRONG ANSWER


9) 

If provision is created for doubtful debts, which of the following entry will be passed to record bad debts in control account?


A)  Bade debts (Dr) and Debtors Control A/c (Cr)
WRONG ANSWER

B)  Provision for doubtful debts (Dr) and Debtors Control A/c (Cr)
WRONG ANSWER

C)  Provision for doubtful debts (Dr) and Debtors A/c (Cr)
RIGHT ANSWER!!!

D)  Debtors Control A/c (Dr) and Provision for doubtful debts (Cr)
WRONG ANSWER


10) 

Which of the following shows summary of a company's financial position at a specific date?

A)  Profit & Loss Account
WRONG ANSWER

B)  Cash Flow Statement
WRONG ANSWER

C)  Balance Sheet
RIGHT ANSWER!!!

D)  Income & Expenditure Account
WRONG ANSWER




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