Accounting, Banking and Finance MCQs

Financial Accounting

Quiz # 2, 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 entry will be recorded, if a cheque deposited is dishonored by bank?

    • A) Bank Account (Dr.) and Debtor's Account (Cr.)
    • B) Debtor's Account (Dr.) and Bank Account (Cr.)
    • C) Dishonored Cheque Account (Dr.) and Bank Account (Cr.)
    • A) Creditor's Account (Dr.) and Bank Account (Cr.)

  2. 2)

    When the capitals are fixed, which of the following account will be debited for drawings made by a partner?

    • A) Individual Partner’s Current Account
    • B) Partner’s Cash Account
    • C) Partner’s Bank Account
    • D) Partners Capital Account

  3. 3)

    If company has distributable profit of $ 490,000, Profit sharing share ratio of Mr. A, Mr. B and Mr. C is 2:3:5 respectively. What will be the share of profit for Mr. A in distributable profit?

    • A) $ 98,000
    • B) $ 147,000
    • C) $ 245,000
    • D) $ 343,000

  4. 4)

    An overdraft will appear as:

    • A) A debit balance in both the bank statement and the cash book
    • B) A credit balance in the bank statement but as a debit balance in the cash book
    • C) A credit balance in the cash book but as a debit balance in the bank statement
    • D) A credit balance in both the bank statement and the cash book

  5. 5)

    In which of the following case the bank cannot refuse the payment?

    • A) Stale cheque
    • B) Bearer cheque
    • C) Insolvency of the customer
    • D) Post dated cheque

  6. 6)

    Failure to record ___________ will result in understates net income.

    • A) Accrued expenses
    • B) Expenses incurred
    • C) Accrued revenues
    • D) Accounts payable

  7. 7)

    The value of a share as quoted on the stock exchange is known as:

    • A) Book value
    • B) Par value
    • C) Market value
    • D) Face value

  8. 8)

    Which of the following ratio cannot be computed for a period in which the company incurs a net loss?

    • A) Acid-test ratio
    • B) Return on investment
    • C) Price-earning ratio
    • D) None of the given options

  9. 9)

    In statement of cash flows, interest payment made on loan from bank is related to:

    • A) Investing activity
    • B) Financing activity
    • C) Operating activity
    • D) Net changes in working capital

  10. 10)

    Which of the following is the type of business owned by one person?

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