Financial Accounting MCQ on Branch Accounting

MCQ on Branch Accounting

Also Read Financial Accounting MCQ

1. Branch not keeping the full system of accounting is also known as

 (a) Foreign branch

(b) Dependent branch

(c) Independent branch

(d) None of the above

Answer (b) Dependent branch

2. Branch keeping the full system of accounting is also known as

 (a) Independent branch

(b) Dependent branch

(c) Foreign branch

(d) None of the above

Answer  (a) Independent branch

3. Stock and debtor system is popularly known as

 (a) Foreign branch methods

(b) Analytical methods

(c) Synthetic methods

(d) Analytical methods

Answer (d) Analytical methods

4. Branch debtor system is otherwise known as

 (a) Synthetic methods

(b) Stock and debtor methods

(c) Foreign branch methods

(d) Analytical methods

Answer  (a) Synthetic methods

5. Branch account is prepared to ascertain

 (a) Profit and loss of the branch

(b) Financial statement of the business

(c) Assets and liability of the head office

(d) None of the above

Answer  (a) Profit and loss of the branch

6. The system in which profit and loss made by the branch is determined by preparing branch trading and profit & loss account at cost price is

 (a) Synthetic methods

(b) Stock and debtor methods

(c) Final account methods

(d) Analytical methods

Answer (c) Final account methods

7. The account prepaired for the ascertaining  the amount of gross profit earned by the branch under stock and debtor system is

 (a) Branch adjustment account

(b) Branch stock account

(c) Goods sent to branch account

(d) Branch debtor account

Answer  (a) Branch adjustment account

8. The account prepared to adjust the loading included in the value of opening and closing stock at branch is termed as

 (a) Branchadjustmentaccount

(b) Stock reserve and surplus account

(c) Goods sent to branch account

(d) Branch debtor account

Answer (b) Stock reserve and surplus account

9. The account prepared in the same way as that when goods are invoice at cost, except that all entries are made at invoice price is termed as

 (a) Branch adjustment account

(b) Branch stock account

(c) Goods sent to branch account

(d) Branch debtor account

Answer (b) Branch stock account

10. Which methods is adopted generally in those branches which are small in size

 (a) Debtors method

(b) Stock and debtor methods

(c) Foreign branch methods

(d) Analytical methods

Answer  (a) Debtors method

11. In which methods goods are sent by the head office to the branch at invoice price

 (a) Invoice price method

(b) Debtors method

(c) Stock and debtor methods

(d) Foreign branch methods

Answer  (a) Invoice price method

12. Which account is prepaired when branch sells goods on credit

 (a) Branch adjustment account

(b) Branch debtors account

(c) Goods sent to branch account

(d) Branch debtor account

Answer (b) Branch debtors account

13. Which books is prepared to maintaining the small expenses like carriage postage, entertainment etc.

(a) Management books

(b) Petty cash book

(c) Accounting books

(d) None of the above

Answer (b) Petty cash book

14. The goods sent by the head office may be either at ……..or cost plus profit

 (a) Cost price

(b) Selling price

(c) Market price

(d) Invoice price

Answer  (a) Cost price

15. Which account is prepared for recording all cash transaction relating to the branch?

 (a) Goods sent to branch account

(b) Branch debtor account

(c) Branch cash account

(d) None of the above

Answer (c) Branch cash account
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