Notes of E-com 1st Year, Financial Accounting Mcq seires FAC.pptx - Study Material
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Q.1.Book-keeping is mainly concerned with, (a) designing for systems of recording, classifying and summarising recorded data, (b) recording financial data relating to business operations, (c) interpreting data for internal and external users, (d) All of the above
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Q.2. The basic function of financial accounting is to, (a) record all business transactions, (b) interpret financial data, (c) assist the management in performing functions effectively, (d) None of the above
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Q.3. Which of the following is not an internal user of financial statements?, (a) Lenders, (b) Managers, (c) Board of Directors, (d) Employees
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Q. 4. Which of the following will not be recorded in the books of accounts?, (a) Paid rent for office premises rs.10,000, (b) Paid commission for purchase of raw material rs. 200, (c) Purchased goods on credit rs. 15,000 for resale, (d) Resignation of manager Mr Mohan
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Q.5 . Transactions are posted into ledger accounts from, (a) journal, (b) vouchers, (c) subsidiary books, (d) Both a and c
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Q.6. Sales account will have a., (a) debit balance, (b) credit balance, (c) either a debit or a credit balance, (d) no balance
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Q.7 . assets that have no physical existence but are rights that have value is known as, A. Current assets , B. Fixed assets , C. Intangible assets , D. Investments
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Q.8. the assets that can be converted into cash within a short period ( 1 year or less) are known as, A. Current assets , B. Fixed assets , C. Intangible assets , D. Investments
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Q.9. patents, copyright and trademarks are, A. Current assets , B. Fixed assets , C. Intangible assets , D. Investments
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Q.10.the debts which are to be paid within short period ( 1 year or less) are known as, A. Current liabilities , B. Fixed liabilities , C. Contingent liabilities , D. All of the above
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Q.11.the main objective of depreciation is, (a) To show the previous profit, (b) To calculate net profit, (c) To reduce tax, (d) To satisfy the tax department
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Q.12 . What is the purpose of making a provision for depreciation in the accounts?, (a) To charge the cost of fixed assets against profits, (b) To show the current market value of fixed asset, (c) To make cash available to replace fixed assets, (d) To make a provision for repairs
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Q. 13. According to straight line method of providing depreciation, the depreciation, (a) Remains constant, (b) Increase each year., (c) Decrease each year, (d) None of them.
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Q. 14. According to fixed installment method, the depreciation is calculated on, (a) Balance amount, (b) Original cost, (c) Scrap value, (d) None of them
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Q.15 Under the diminishing balance method depreciation is calculated on____., A. Original value. B. Written down value. C. Scrap value. D. Market value.
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Q. 16. The amount of depreciation charged on machinery will be debited to_____., A. machinery account. B. depreciation account. C. cash account. D. bank account.
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Q17. Under annuity method the amount of depreciation is found out from _____., A. log tables. B. sinking fund tables. C. annuity tables. D. present value tables.
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18 Depreciation fund is also called ______., A. reserve fund. B. compensation fund. C. workers fund. D. sinking fund.
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Q19. Under depreciation fund method, the amount of depreciation is calculated with reference to ________., A. log tables B. sinking fund tables C. annuity tables D. present value tables
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Q 20. For the replacement of asset the provision method is…………., a) Sinking fund method, b) Annuity method, c) Written down value method, e) straight line method
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Q21. Under depreciation fund method depreciation is charged to ______., A. profit and loss account. B. trading account. C. balance sheet. D. p & l appropriation accoun
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Q22. Balance sheet shows, Gross profit of financial period , Net profit of financial period , Financial position on a particular data , All real, personal and nominal accounts
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23.Which of the following is a capital expenditure?, Carriage paid on goods purchased , Payment of compensation to a discharged employee , Cost of formation of a new company , Legal expenses incurred for abuse of trademark
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Q. 24. Which of the following is debited to Trading Account?, Rent , Wages and Salaries , Commission , Salaries and Wages
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Q25. Which one of the following is not a current asset?, Debtors , Prepaid expense , Stock , Office furniture
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Q26.Final account is, Ledger , Account , Statement , Account and Statement
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Q27 . The excess of debit in trading account is called, Net loss , net profit , Gross loss , gross profit
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Q. 28. Liability of sole trader is, limited , unlimited , undecided , qualified
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29. Freight inward appearing in trial balance is shown, on the debit side of profit and loss account , on the debit side of trading account , on the liabilities side of balance sheet , on the asset side of the balance sheet
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Q30. Drawings are deducted from, sales , purchases, return outward , capital
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31. hire purchase system is governed by, A hire purchase act 1972, B sales of goods act , C installment act, D properties registration act
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32. installment system is governed by, A hire purchase act 1972, B sales of goods act , C installment act, D properties registration act
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33. under hire purchase system the agreement can be …………. Anytime, A renewed, B registered, C terminated, D endorsed
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34. when an asset is acquired on hire purchase system, the asset account is debited with ………… of the assets in the books of the hire purchaser., A hire purchase prise, B cash price, C installment price, D none of these
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35. on the balance sheet of the company, the value of the asset bought through hire purchase will appear as:, A cost less depreciation to date less balance in hire vendors account, B cost less amount owing on hire purchase , C cost less depreciation to date less amount owing on hire purchase , D cost less depreciation to date
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36. the depreciation on an asset purchased through hire purchase should be, A should be straight line only, B based on cost price of the asset only, C based on the total cost including interest, D no depretion should be provide until final payment is made
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37. Ownership of goods under hire purchase agreement is transferred at the time of, A Payment of down payment, B. Payment of first instalment, C. Payment of last instalment, D. None of the above
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38. The act of buying an asset without having to make full payment in the immediate future is known as, A hire purchase, B finance lease, C operating lease, D sales and leaseback
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39. The amount of interest is credited by the buyer to, A hire purchase account, B hire vendor account, C interest account
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40. what is transferred to hirer under hire purchase system, A ownership of asset, B possession of asset, C ownership and possession of asset, D none of these
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41. What is Royalty?, a. A payment is made for the use of Assets , B. A fixed payment for the use of Fixed Assets , c. Payment made by owners , d. None of the above
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42. Mining Royalty is based on:, a. Production , B. Sales , c. Purchase , d. Both A and B
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43. Patent Royalty is based on:, a. Production , B. Sales , c. Purchase , d. Both A and B
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44. Copyright royalty is based on:, a. Sales , B. Production , c. Purchase , d. Both A and B
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45. Lessor is the …………:, a. Owner , B. User , c. None , d. Both
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46. Lessee is the…………:, a. Owner , B. User , c. None , d. Both
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47. What is minimum Rent?:, a. Payment for use of land which is fixed , B. Payment for the use of land on the basis of output , c. A payment made to owner , d. None of the above
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48. Short working = …………………- Royalty Payable:, a. Minimum rent , B. Capital , c. Cash , d. None
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49. Royalty Account is ……:, a. Nominal account , B. Real account , c. Personal Account , d. None of the above
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50. When the royalty are less than the minimum rent ?, a. Royalties account is debited with the actual amount of royalties earned , B. Royalties account is debited with minimum rent , c. Royalties account is debited with the amount paid to landlord , d. Royalties account is debited with the excess of minimum rent over actual rent
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