Home » MCQs » Financial Accounting Multiple Choice Questions#29

1) 

The process of transferring journal entry information to the ledger is called:


A)  JournalizingWRONG ANSWER

B)  PostingRIGHT ANSWER!!!

C)  BalancingWRONG ANSWER

D)  Analyzing WRONG ANSWER


2) 

Which of the following is NOT correct?


A)  Decrease in Assets will be creditWRONG ANSWER

B)  Decrease in Liabilities will be creditRIGHT ANSWER!!!

C)  Decrease in Expenses will be creditWRONG ANSWER

D)  Decrease in Revenue will be debitWRONG ANSWER

3) 

An accounting system is used by a business to:


A)  Analyze transactions
WRONG ANSWER

B)  Handle routine book-keeping tasks
WRONG ANSWER

C)  Classify and summarize financial information
WRONG ANSWER

D)  All of the given options
RIGHT ANSWER!!!


4) 

The assets which have a limited useful life are termed as:

A)  Limited assets
WRONG ANSWER

B)  Depreciateable assets
RIGHT ANSWER!!!

C)  Unlimited assets
WRONG ANSWER

D)  None of the given options
WRONG ANSWER


5) 

Accountancy covers which of the following area(s):

A)  Book-keeping
WRONG ANSWER

B)  Accounting
WRONG ANSWER

C)  Auditing
WRONG ANSWER

D)  All of the given options
RIGHT ANSWER!!!


6) 

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


7) 

Which of the following transaction have NO affect on stockholders' equity?

A)  Purchase of land on credit
RIGHT ANSWER!!!

B)  Dividends to stockholders
WRONG ANSWER

C)  Net loss
WRONG ANSWER

D)  Investment in cash by stockholders
WRONG ANSWER


8) 

Which of the following account balance is shown on credit side of Trial Balance? (It is assumed that all account balances are shown on normal balance)

A)  Cash account
WRONG ANSWER

B)  Furniture account
WRONG ANSWER

C)  Vehicle account
WRONG ANSWER

D)  Capital accountRIGHT ANSWER!!!

9) 

If you start with cash book balance (Dr.), which of the following item will be deducted in Bank Reconciliation Statement?

A)  Any cheque drawn to creditor but not paid by bank
WRONG ANSWER

B)  Interest credited by the bank in pass book
WRONG ANSWER

C)  Cheque deposited but not credited by the bank
RIGHT ANSWER!!!

D)  Dividend collected by bank on behalf of the customer
WRONG ANSWER


10) 

The cost of moving plant and machinery to a new site will be treated as:

A)  Revenue expense
WRONG ANWSER

B)  Capital expense
RIGHT ANSWER!!!

C)  Administrative expense
WRONG ANSWER

D)  Operating expense
WRONG ANSWER




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