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Accounting, Banking and Finance MCQs

Financial Accounting

Quiz # 4, MCQs

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

The Timer has started 10:00

1)

Current ratio may be increased by:
- A) Overstating current Assets
- B) Overstating current Liabilities
- C) Understating current Assets
- D) Understating current assets and overstating current liabilities
Right Answer is the option "A"

2)

Liabilities of the members of the ________ is only limited to the capital introduce by member/s.
- A) Partnership
- B) Company
- C) Sole proprietorship
- D) None of the given options
Right Answer is the option "B"

3)

In cost of goods sold statement the ‘total factory cost’ is equal to:
- A) Cost of material consumed + Labor cost
- B) Cost of material consumed + Conversion cost
- C) Cost of material consumed + Total factory cost
- D) Cost of material consumed + Factory overhead
Right Answer is the option "B"

4)

Which of the following item will be shown on debit side of debtors account?
- A) Discount received
- B) Return inwards
- C) Discount allowed
- D) Credit sales
Right Answer is the option "D"

5)

Goods purchased from “Mr. A” for $ 2,000 passed through the sales book. The rectification of error will result in:
- A) Increase of gross profit
- B) Decrease of gross profit
- C) Remains constant and no effect on net profit
- D) There is no relation between goods purchased and gross profit
Right Answer is the option "B"

6)

Transaction that has been completely forgotten to enter is called:
- A) Error of principle
- B) Error of omission
- C) Error of commission
- D) Error of original entry
Right Answer is the option "B"

7)

Which of the following item must be recorded in the adjusted Cash Book in order to bring it in line with the entries in the Bank Statement?
- A) Bank charges
- B) An error on the Bank Statement
- C) An uncredited deposit
- D) An unpresented cheque
Right Answer is the option "A"

8)

Which of the following is quoted company?
- A) Private Limited Company
- B) Public Limited Company
- C) Listed company
- D) Non Listed Company
Right Answer is the option "C"

9)

According to the statement of cash flows following are the examples of investing activities except:
- A) Sales of machinery
- B) Capital invested by the owners
- C) Purchase of building for the business use
- D) Cash received from the disposal of equipment
Right Answer is the option "D"

10)

$ 5,000 spent on the replacement of worn-out parts of the machinery is charged to:
- A) Capital expenditure
- B) Revenue expenditure
- C) Deferred expenditure
- D) Revenue
Right Answer is the option "B"