Accounting, Banking and Finance MCQs

Financial Accounting

Quiz#1, MCQs

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

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  1. 1)

    Which of the following business publishes the Financial Statements?

    • A) Sole-Proprietorship
    • B) Partnership
    • C) Trust
    • D) Public Limited Company

  2. 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

  3. 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

  4. 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.)

  5. 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

  6. 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.)

  7. 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

  8. 8)

    Which of the following asset is NOT depreciated?

    • A) Factory Buildings
    • B) Office Equipment
    • C) Plant & Machinery
    • D) Land

  9. 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

  10. 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