Home » MCQs » Financial Accounting Multiple Choice Questions#14

1) 

Which of the following rectifying entry will be recorded, if sales to Mr. “A” of $336 have been debited to Mr. “B” account?

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


2) 

Which of the following account(s) will be affected, while rectifying the error of sales
Rs.100 to Mr. “A” recorded in the purchases book?


A)  Sales account
WRONG ANSWER

B)  Purchase account
WRONG ANSWER

C)  A’s account and Sales account
WRONG ANSWER

D)  Sales account, purchase account and A’s account
RIGHT ANSWER!!!


3)  Which of the following is shown on credit side of creditors control account?


A)  Bills Receivable
WRONG ANSWER

B)  Return inwards
WRONG ANSWER

C)  Credit purchases
RIGHT ANSWER!!!

D)  Discount allowed
WRONG ANSWER


4)  Which of the following is NOT based on the concept of double entry book keeping system?

A)  Subsidiary Ledgers
RIGHT ANSWER!!!

B)  Creditors Control Accounts
WRONG ANSWER

C)  Debtors Control Accounts
WRONG ANSWER

D)  All of the given options
WRONG ANSWER


5) 

Bad Debts written off are given in adjustment, then which of the following entry for bad debts written off is CORRECT?

A)  Bad debts a/c (Dr) and Trading a/c (Cr)
WRONG ANSWER

B)  Provision for Bad and Doubtful debts a/c (Dr) and Bad debts a/c(Cr)
RIGHT ANSWER!!!

C)  Bad debts a/c (Dr) and debtors a/c (Cr)
WRONG ANSWER

D)  Trading a/c (Dr) and Bad debts a/c (Cr)
WRONG ANSWER


6) 

Stock of Trading concern consists of:

A)  Raw material
WRONG ANSWER

B)  Work in process
WRONG ANSWER

C)  Merchandise inventory
RIGHT ANSWER!!!

D)  All of the given options
WRONG ANSWER


7) 

cost of goods sold statement the ‘cost of goods manufactured’ is equal to:


A)  Total factory cost + Opening work in process + Ending work in process
WRONG ANSWER

B)  Total factory cost + Opening work in process – Ending work in process
RIGHT ANSWER!!!

C)  Total factory cost - Opening work in process + Ending work in process
WRONG ANSWER

D)  Ending work in process +Total factory cost – Opening work in process
WRONG ANSWER


8) 

What would be the value of total factory cost, if the cost of material consumed during the month is $ 6,000, labor cost incurred is $2,000 and the factory over head cost is $ 2,500?

A)  $6,000
WRONG ANSWER

B)  $8,000
WRONG ANSWER

C)  $4,500
WRONG ANSWER

D)  $10,500
RIGHT ANSWER!!!


9) 

Which of the following item appears in Trading Account of a business?

A)  Interest expenses
WRONG ANSWER

B)  Wages and salaries
RIGHT ANSWER!!!

C)  Depreciation expenses
WRONG ANSWER

D)  Discount Allowed
WRONG ANSWER


10) 

The cost of sales is $60,000, sales are $95,000 and operating expenses are $20,000 during the year, what would be the value of Gross Profit?

A)  $15,000
WRONG ANSWER

B)  $Rs. 35,000
RIGHT ANSWER!!!

C)  $Rs. 55,000
WRONG ANSWER

D)  $Rs. 60,000
WRONG ANSWER




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