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Accounting, Banking and Finance MCQs

Financial Accounting

Quiz#1, MCQs

NOTE: Attempt all Questions to see the Result at the bottom of this page.

The Timer has started 10:00

1)

Which of the following business publishes the Financial Statements?
- A) Sole-Proprietorship
- B) Partnership
- C) Trust
- D) Public Limited Company
Right Answer is the option "D"

2)

Which financial statement show what a business owes at a particular point in time?
- A) A cash flow statement
- B) The bank statement for the business
- C) A balance sheet
- D) A statement of retained earnings
Right Answer is the option "C"

3)

The Balance Sheet item that represents the resources invested by the owner is known as:
- A) Accounts Receivable
- B) Cash
- C) Note Payable
- D) Owner's Equity
Right Answer is the option "D"

4)

Which of the following rectifying entry will be recorded, if sales to Mr. “A” of $300 have been debited to Mr. “B” account?
- A) A’s account (Dr.) and B’s account (Cr.)
- B) B’s account (Dr.) and A’s account (Cr.)
- C) Sales account (Dr.) and B’s account (cr.)
- D) B’s account (Dr.) and Sales account (Cr.)
Right Answer is the option "A"

5)

Which of the following is considered as the most important document of the company?
- A) Memorandum of Association
- B) Articles of Association
- C) Prospectus
- D) Annual Report
Right Answer is the option "A"

6)

Which of the following entry will be recorded when the Bad Debts are recovered?
- A) Cash account (Dr.) & Bad Debts recovered account (Cr.)
- B) Accounts Receivable account (Dr.) & Bad Debts recovered account (Cr.)
- C) Bad debts recovered account (Dr.) and Profit & Loss account (Cr.)
- D) Provision for doubtful debts account (Dr.) & Cash account (Cr.)
Right Answer is the option "A"

7)

Depreciable value of an asset is equal to:
- A) Cost + scrap value
- B) Cost + market price
- C) Cost – scrap value
- D) None of the given options
Right Answer is the option "C"

8)

Which of the following asset is NOT depreciated?
- A) Factory Buildings
- B) Office Equipment
- C) Plant & Machinery
- D) Land
Right Answer is the option "D"

9)

Which of the following can offer its share to general public at large?
- A) A private limited company
- B) A listed company
- C) A partnership firm
- D) A trust
Right Answer is the option "C"

10)

Which of the following organizations do NOT prepare Income & Expenditure account?
- A) Public limited companies
- B) Private limited companies
- C) Partnership firms
- D) All of the given options
Right Answer is the option "D"