Home » MCQs » Financial Accounting Multiple Choice Questions#22

1) 

Which of the following journal entry will be recorded, if the goods are sold on credit to
Mr. 'B'?

A)  Mr. “B” / Accounts Receivable account (Dr) and Sales account (Cr)
RIGHT ANSWER!!!

B)  Cash account (Dr) and sales account (Cr)
WRONG ANSWER

C)  Sales account (Dr) and Mr. B / Accounts Receivable account (Cr)
WRONG ANSWER

D)  Goods Sold account (Dr) and Mr. B / Accounts Receivable account (Cr)
WRONG ANSWER


2) 

Which of the following is NOT an item of a Balance Sheet?

A)  Accounts Receivable
WRONG ANSWER

B)  Accounts Payable
WRONG ANSWER

C)  Sales Revenue
RIGHT ANSWER!!!

D)  Marketable Securities
WRONG ANSWER


3) 

Accounts Receivable & Inventory are the examples of:

A)  Liquid assets
WRONG ANSWER

B)  Current assets
RIGHT ANSWER!!!

C)  Fixed assets
WRONG ANSWER

D)  Capital assets
WRONG ANSWER


4) 

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


5) 

Which of the following summarizes the cash movements during a specified period?

A)  Trading account
WRONG ANSWER

B)  Profit & Loss account
WRONG ANSWER

C)  Receipts & Payments account
RIGHT ANSWER!!!

D)  Balance Sheet
WRONG ANSWER


6) 

Which of the following financial statement summarizes the profitability of an organization for a particular period?

A)  Balance Sheet
WRONG ANSWER

B)  Trading and Profit & Loss account
RIGHT ANSWER!!!

C)  Cash Flow Statement
WRONG ANSWER

D)  Statement of Retained Earnings
WRONG ANSWER


7) 

In an account, if credit side < debit side then the balance is known as:


A)  Negative Balance
WRONG ANSWER

B)  Debit Balance
RIGHT ANSWER!!!

C)  Positive Balance
WRONG ANSWER

D)  Credit Balance
WRONG ANSWER


8) 

Which of the following is used to record financial transactions in chronological (day-to- day) order?

A)  Voucher
WRONG ANSWER

B)  General Journal
RIGHT ANSWER!!!

C)  General Ledger
WRONG ANSWER

D)  Trial balance
WRONG ANSWER


9) 

When a Liability is reduced or decreased, it is recorded on the:

A)  Right or debit side of the account
WRONG ANSWER

B)  Left or debit side of the account
RIGHT ANSWER!!!

C)  Left or credit side of the account
WRONG ANSWER

D)  Right or credit side of the account
WRONG ANSWER


10) 

What is the nature of an expense account?

A)  Debit RIGHT ANSWER!!!

B)  Credit WRONG ANSWER

C)  Revenue WRONG ANSWER

D)  None of the given options
WRONG ANSWER




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