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Accounting, Banking and Finance MCQs

Financial Accounting

Quiz # 3, MCQs

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

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1)

Which of the following account would be credited when goods are given as charity?
- A) Charity a/c
- B) Free sample a/c
- C) Purchases a/c
- D) Sales a/c
Right Answer is the option "C"

2)

Which of the following account would be credited when the owner of business sold machinery of Rs. 10,000 for cash?
- A) Sales a/c
- B) Machinery a/c
- C) Owner a/c
- D) Cash a/c
Right Answer is the option "B"

3)

What is the best condition to finance a business?
- A) Fully financed from your own resource
- B) Fully relied on financial institutions
- C) Investment through own resources as well as rely on financial instructions
- D) None of the given options
Right Answer is the option "C"

4)

Which of the following particulars are included in the specimen of a bank receipt voucher?

1) Name of the organization
2) Bank code
3) Date of transaction
- A) (1) & (2) only
- B) (1) & (3) only
- C) (2) & (3) only
- D) (1), (2) & (3)
Right Answer is the option "D"

5)

Which of the following account would be debited, when goods are sold on credit?
- A) Stock account
- B) Accounts receivable account
- C) Accounts payable account
- D) Sales account
Right Answer is the option "B"

6)

Under which of the following methods for inventory valuation, cost of goods sold is based on older costs?
- A) FIFO Method
- B) LIFO Method
- C) Weighted Average Method
- D) Specific Identification Method
Right Answer is the option "B"

7)

When Pass Book shows a debit balance it means:
- A) Favourable balance as per cash book
- B) Unfavorable balance as per bank statement
- C) Debit balance as per cash book
- D) Favourable balance as per bank statement
Right Answer is the option "B"

8)

Which of the following is INCORRECT about subsidiary account?
- A) It is not a summary account
- B) It reduces the burden of control account
- C) It provides detailed information about individual accounts
- D) It summarizes the total of related items from other accounts
Right Answer is the option "A"

9)

Which of the following is shown on the liability side of Balance Sheet?
- A) Discount on issue of shares a/c only
- B) Share capital a/c only
- C) Premium on issue of shares a/c only
- D) Both share capital and share premium a/c
Right Answer is the option "D"

10)

Which of the following would be considered as non cash item in cash flow statement?
- A) Depreciation
- B) Accounts receivable
- C) Accounts payable
- D) Inventory
Right Answer is the option "A"