Accounting MCQ on Final Accounts

Accounting MCQ on Final Accounts

You can also read all Commerce MCQ

Ezoicreport this ad

1. Land and Building owned by a firm should be classified as:

(a) Fixed Assets

(b) Current Assets

(c) Fictitious Assets

(d) None of the above

Ans. (a) Fixed Assets

2. The profit on sale of old furniture should be credited to:

(a) Trading Account

(b) Profit and Loss Account

(c) Manufacturing Account

(d) All of the above

Ans. (b) Profit and Loss Account

3.  Carriage inwards is shown on:

 (a) Debit side of Trading Account

(b) Debit side of Profit and Loss Account

(c) Assets side of the Balance Sheet

(d)  Liabilities side of the Balance Sheet

Ans.  (a) Debit side of Trading Account

4. Income tax paid by a sole trader on his business income should be:

(a) Credited to his capital Account

(b) Credited to Trading Account

(c) Debited to Profit and Loss Account

(d)  Debited to Capital Account

And. (c) Debited to Profit and Loss Account

5. Returns Outward is deducted from:

(a) Sales

(b)Net Profit

 (c) Capital

(d) Purchases

Ans. (d) Purchases

6. Trading Account reveals:

(a) Financial Position

(b) Gross Profit or Gross Loss

(c) Net Profit

(d) Appropriation of Profit

Ans. (b) Gross Profit or Gross Loss

7. An example of intangible asset is:

(a) Machinery

(b) Prepaid Insurance

(c) Mine

(d) Copyrights

Ans. (d) Copyrights

8. An example of fictitious asset is:

(a) Patent right

(b) Preliminary Expenses

(c) Furniture

(d) Investment

Ans. (b) Preliminary Expenses

9. Goodwill is:

(a) Current Asset

(b) Liquid Asset

(c) Intangible Asset

(d) Fictitious Asset

Ans .(c) Intangible Asset

10. Profit and Loss Account reveals:

(a) Gross Profit

(b) Net Profit or Net Loss

(c) Financial position

(d) Cash in Hand

Ans. (b) Net Profit or Net Loss

11. Balance Sheet of a firm shows:

(a) Gross Profit

(b) Sales made during the year

(c) Financial position

(d) Units produced during the year

Ans. (c) Financial position

12. Out of the following, the one which is the most liquid asset, is:

(a) Sundry Debtors

(b) Inventory

(c) Prepaid Insurance

(d) Cash

Ans. (d) Cash

13. Manufacturing Account reveals:

(a) Financial position

(b) Cost of Production

(c) Gross profit

(d) Net profit

Ans. (b) Cost of Production

14. Trade mark is a/an:

(a) Fictitious asset

(b) Intangible asset

(c) Current asset

(d) Liquid asset

Ans. (b) Intangible asset

15. Outstanding rent is a:

(a) Representative Personal Account

(b) Real Account

(c) Nominal Account

(d) Personal Account Balance Sheet reveals:

Ans. (a) Representative Personal Account

16. Balance Sheet reveals:

(a) Cost of production

(b) Gross profit

(c) Financial position

 (d) Net profit

Ans. (c) Financial position

17. Selling and Administrative Expenses are shown in:

(a) Profit and Loss Account

(b) Trading Account

(c)  Manufacturing Account

       (d) Balance Sheet

Ans. (a)  Profit and Loss Account

18. Which of the following is an intangible asset?

(a)Stock-in-trade

(b)Building

(c) Patents

(d) Bank Balance

Ans.  (c) Patents
  1. Which of the following is a current asset?

(a)Land

(b)Cash at Bank

(c) Goodwill

(d) Plant and Machinery

Ans.(b) Cash at Bank

20. Direct expenses are shown in:

(a) Balance Sheet

(b) Profit and Loss Account

(c) Trading Account

(d) All of the above

Ans. (c) Trading Account

21. Which of the following is an example of current liabilities?

(a) Bank Loan

(b) Debentures

(c) Creditors

(d) Owner’s Capital

Ans. (c) Creditors

22. It is necessary to make a distinction between capital and revenue items because:

(a) It is helpful to assess financial position

(b) It is helpful in calculating true profit or loss

(c) It is required by accounting principles

(d)All of the above

Ans. (d) All of the above

23. Expenditure of installation of a new machinery, is:

(a) Capital expenditure

(b) Revenue expenditure:

(c) Deferred Revenue expenditure

(d) Recurring expenditure

Ans. (a) Capital expenditure

24. Heavy advertisement expenditure is an example of:

(a) Revenue Expenditure

(b) Capital Expenditure

(c) Deferred Revenue Expenditure

(d) All of the above

Ans. (c) Deferred Revenue Expenditure

25. Which of the following is not a revenue receipt?

(a) Discount received

 (b) Sales made

(c) Sale of Plant

(d)  Commission

Ans.  (b) Sale of Plant

26. Which liability is not shown in Balance Sheet?

(a) Contingent Liability

(b) Current Liability

(c)  Long-term Liability

(d) None of the above

Ans. (a) Contingent Liability

27. Which of the following is not deducted from capital?

(a) Loss

(b) Drawings

(c) Loan

(d) Income Tax

Ans.  (c) Loan

Share on:

lecturer in Commerce Author Social Worker FB Profile

Leave a Comment