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Accounting, Banking and Finance MCQs

Financial Accounting

Quiz # 2, 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 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.)
Right Answer is the option "B"

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
Right Answer is the option "D"

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
Right Answer is the option "A"

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
Right Answer is the option "C"

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
Right Answer is the option "B"

6)

Failure to record ___________ will result in understates net income.
- A) Accrued expenses
- B) Expenses incurred
- C) Accrued revenues
- D) Accounts payable
Right Answer is the option "C"

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
Right Answer is the option "C"

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
Right Answer is the option "B"

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
Right Answer is the option "C"

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
Right Answer is the option "A"