Which of the following branches, taking into consideration the scope of authority andresponsibility, prepares its own independent final accounts?

independent and foreign branch both

Matching concept means

transactions recorded at accrual concept

anticipate no profit but recognize all losses

expenses should be matched with the revenue of the period. branch accounts

Which of the following is not the main objective of accounting?

systematic recording of transactions

ascertainment of financial position

solving tax disputes with tax authorities

If nothing is written about the accounting assumption to be followed it is presumed that

they are followed to some extent

As per accrual concept, which of the followings is not true

revenue – expenditure = profit

revenue – profit = expenditure

In income measurement & recognisation of assets & liabilities which of the followingconcepts goes together?

going concern, cost, realization

going concern, periodicity, reliability

Profit and loss account is a

representative personal account

1706 + Mcqs in Financial Accounting in Finance & Accounting Page 4 McqOptions

151.	Under debtors system depreciation on fixed asset is ________
A.	credited to branch a/c
B.	debited to branch a/c
C.	not shown in branch a/c
D.	shown in debtors a/c
Answer» D. shown in debtors a/c

Discussion

152.	Goods are supplied by the head office to dependent branches are at:
A.	cost price
B.	invoice price
C.	market price
D.	cost or invoice price
Answer» E.

Discussion

153.	Under debtors system which account is prepared by head office to calculate profit or lossof each branch:
A.	capital account
B.	debtors account
C.	branch account
D.	branch adjustment account
Answer» D. branch adjustment account

Discussion

154.	If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount ofcredit sales?
A.	rs 95000
B.	rs 105000
C.	rs 100000
D.	rs 110000
Answer» D. rs 110000

Discussion

155.	H.O. sent goods to branch at invoice price 50% plus on original price. How manypercentage of profit will be on Invoice price?
A.	20%
B.	25%
C.	33.33%
D.	16.67%
Answer» D. 16.67%

Discussion

156.	The system of keeping accounts generally adopted by small size branches are:
A.	debtors system
B.	stock & debtors system
C.	wholesale branch system
D.	final account system
Answer» B. stock & debtors system

Discussion

157.	Goods sent by HO but not received by branch before the end of the year, by debiting it togoods in transit, which account should be credited?
A.	cash a/c
B.	h.o. a/c
C.	trading a/c
D.	branch a/c
Answer» E.

Discussion

158.	Stock and debtors system is generally used when goods are sent to the branch at _____
A.	cost price
B.	invoice price
C.	both
D.	none
Answer» C. both

Discussion

159.	The adjusting entry for difference between the invoice price and cost price of goods areshown in ________
A.	balance sheet
B.	p & l a/c
C.	branch adjustment a/c
D.	none of above
Answer» D. none of above

Discussion

160.	H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price.What is the loading element?
A.	rs 60000
B.	rs 240000
C.	rs 48000
D.	rs 160000
Answer» D. rs 160000

Discussion

161.	Which of the following branches, taking into consideration the scope of authority andresponsibility, prepares its own independent final accounts?
A.	independent branch
B.	foreign branch
C.	dependent branch
D.	independent and foreign branch both
Answer» B. foreign branch

Discussion

162.	Goods in transit are shown in the balance sheet at ______
A.	head office
B.	branch
C.	both
D.	none of above
Answer» B. branch

Discussion

163.	Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closingbalance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?
A.	rs 10,24,000
B.	rs 8,84,000
C.	rs 11, 52,000
D.	rs 8,42,000
Answer» B. rs 8,84,000

Discussion

164.	H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch duringthe year will be ______
A.	rs 5000
B.	rs 6400
C.	rs 4600
D.	rs 6000
Answer» E.

Discussion

165.	If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the pettycash received from HO is Rs 700, then what will be the amount of sundry expenses _____
A.	rs 1200
B.	rs 800
C.	rs 700
D.	rs 500
Answer» B. rs 800

Discussion

166.	For finding the amount of sundry expenses paid by the branch, the following a/c should beprepared.
A.	computer a/c
B.	creditors
C.	petty cash a/c
D.	debtors
Answer» D. debtors

Discussion

167.	HO sends goods to branch at invoice price after adding 25% on cost price, so profit wouldbe ___ % of invoice price
A.	33.33%
B.	40%
C.	20%
D.	25%
Answer» D. 25%

Discussion

168.	When Branch pays expenses for H.O. the following account is debited in the books of thebranch _______
A.	expenses is debited
B.	h.o. a/c is debited
C.	branch is debited
D.	none
Answer» C. branch is debited

Discussion

169.	HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profiton cost comes to ______
A.	15%
B.	25%
C.	33.33%
D.	20%
Answer» C. 33.33%

Discussion

170.	Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 atinvoice price, Rs ______ will be credited to stock reserve a/c.
A.	rs 10000
B.	rs 12000
C.	rs 6000
D.	rs 12600
Answer» B. rs 12000

Discussion

171.	Under the stock and debtor system, Branch A/c is treated as ______
A.	joint a/c
B.	nominal a/c
C.	personal a/c
D.	real a/c
Answer» E.

Discussion

172.	Matching concept means
A.	assets = capital + liabilities
B.	transactions recorded at accrual concept
C.	anticipate no profit but recognize all losses
D.	expenses should be matched with the revenue of the period. branch accounts
Answer» E.

Discussion

173.	Which of the following is not the main objective of accounting?
A.	systematic recording of transactions
B.	ascertaining profit or loss
C.	ascertainment of financial position
D.	solving tax disputes with tax authorities
Answer» E.

Discussion

174.	The comparison of financial statement of one year with that of another is possible onlywhen _______ concept is followed
A.	going concern
B.	accrual
C.	consistency
D.	materiality
Answer» D. materiality

Discussion

175.	Valuation of stock in accounting follows the principle of cost price or ____ whichever islower.
A.	market price
B.	average price
C.	net realizable value
D.	none of these.
Answer» D. none of these.

Discussion

176.	The principle “Debit the receiver and credit the giver” is related to_____
A.	personal a/c
B.	real a/c
C.	nominal a/c
D.	none
Answer» B. real a/c

Discussion

177.	Cash A/c is a ________ A/c.
A.	personal
B.	real
C.	nominal
D.	none
Answer» C. nominal

Discussion

178.	Capital A/c is a _______ A/c.
A.	personal
B.	real
C.	nominal
D.	none
Answer» B. real

Discussion

179.	If nothing is written about the accounting assumption to be followed it is presumed that
A.	they have been followed
B.	they have not been followed
C.	they are followed to some extent
D.	none of these
Answer» C. they are followed to some extent

Discussion

180.	Mr. X sold goods to Mr. Y ask Mr. X to keep the goods with him for some time
A.	symbolic delivery
B.	actual delivery
C.	constructive delivery
D.	none of these
Answer» B. actual delivery

Discussion

181.	As per accrual concept, which of the followings is not true
A.	revenue – expenditure = profit
B.	revenue – profit = expenditure
C.	sales + gross profit = revenue
D.	revenue = profit + expenditure
Answer» D. revenue = profit + expenditure

Discussion

182.	Cash a/c is a ______
A.	real a/c
B.	nominal
C.	personal
D.	none
Answer» B. nominal

Discussion

183.	Debit the receiver & credit the giver is _____ account
A.	personal
B.	real
C.	nominal
D.	all the above
Answer» B. real

Discussion

184.	Which of the following factor is not considered while selecting accounting policies?
A.	prudence
B.	substance over form
C.	accountancy
D.	materiality
Answer» D. materiality

Discussion

185.	Which of the following provide frame work and accounting policies so that the financialstatements of different enterprises become comparable.
A.	business standards
B.	accounting standards
C.	market standards
D.	none
Answer» C. market standards

Discussion

186.	Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balancesheet will be
A.	2,00,000
B.	1,00,000
C.	3,00,000
D.	4,00,000
Answer» C. 3,00,000

Discussion

187.	The Market price of good declined than the cost price. Then the concept that plays a keyrole is ____
A.	materiality
B.	going concern concept
C.	realization
D.	consistency
Answer» D. consistency

Discussion

188.	If the Market value of closing Inventory is less than its cost price, inventory will he shownat ____
A.	marketable value
B.	fair market value
C.	both
D.	none
Answer» B. fair market value

Discussion

189.	According to which concept, the proprietor pays interest on drawings
A.	accrual concept
B.	conservatism concept
C.	entity concept
D.	dual aspect concept
Answer» D. dual aspect concept

Discussion

190.	Cost concept basically recognises ____
A.	fair market value
B.	historical cost
C.	realisable value
D.	replacement cost
Answer» C. realisable value

Discussion

191.	The policy of anticipate no profit and provide for all possible losses arise due to the conceptof _____
A.	consistency
B.	disclosure
C.	conservatism
D.	matching
Answer» D. matching

Discussion

192.	Small items like, pencils, pens, files, etc. are written off within a year according to ___concept.
A.	materiality
B.	consistency
C.	conservatism
D.	realisation
Answer» B. consistency

Discussion

193.	Value of goods withdrawn by the proprietor for his personal use should be credited to ____
A.	capital a/c
B.	sales a/c
C.	drawings a/c
D.	purchases a/c
Answer» E.

Discussion

194.	Human resources will not appear in the balance sheet according to ______ concept.
A.	accrual
B.	going concern
C.	money measurement concept
D.	none
Answer» D. none

Discussion

195.	_______ is root cause for financial accounting
A.	stewardship accounting
B.	social accounting
C.	management accounting
D.	human resource accounting
Answer» B. social accounting

Discussion

196.	In income measurement & recognisation of assets & liabilities which of the followingconcepts goes together?
A.	periodicity, accural, matching
B.	cost, accural, matching
C.	going concern, cost, realization
D.	going concern, periodicity, reliability
Answer» B. cost, accural, matching

Discussion

197.	In profit and loss account, if credit is more than the debit, the difference is
A.	net profit
B.	net loss
C.	gross profit
D.	gross loss
Answer» B. net loss

Discussion

198.	All revenue incomes are credited to
A.	manufacturing account
B.	trading account
C.	profit and loss account
D.	balance sheet
Answer» D. balance sheet

Discussion

199.	Profit and loss account is a
A.	personal account
B.	real account
C.	nominal account
D.	representative personal account
Answer» D. representative personal account

Discussion

200.	Interest earned is a
A.	personal account
B.	real account
C.	nominal account
D.	representative personal account
Answer» D. representative personal account

Discussion

Explore topic-wise MCQs in Finance & Accounting.

Under debtors system depreciation on fixed asset is ________

Goods are supplied by the head office to dependent branches are at:

Under debtors system which account is prepared by head office to calculate profit or lossof each branch:

If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount ofcredit sales?

H.O. sent goods to branch at invoice price 50% plus on original price. How manypercentage of profit will be on Invoice price?

The system of keeping accounts generally adopted by small size branches are:

Goods sent by HO but not received by branch before the end of the year, by debiting it togoods in transit, which account should be credited?

Stock and debtors system is generally used when goods are sent to the branch at _____

The adjusting entry for difference between the invoice price and cost price of goods areshown in ________

H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price.What is the loading element?

Which of the following branches, taking into consideration the scope of authority andresponsibility, prepares its own independent final accounts?

Goods in transit are shown in the balance sheet at ______

Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closingbalance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?

H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch duringthe year will be ______

If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the pettycash received from HO is Rs 700, then what will be the amount of sundry expenses _____

For finding the amount of sundry expenses paid by the branch, the following a/c should beprepared.

HO sends goods to branch at invoice price after adding 25% on cost price, so profit wouldbe ___ % of invoice price

When Branch pays expenses for H.O. the following account is debited in the books of thebranch _______

HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profiton cost comes to ______

Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 atinvoice price, Rs ______ will be credited to stock reserve a/c.

Under the stock and debtor system, Branch A/c is treated as ______

Matching concept means

Which of the following is not the main objective of accounting?

The comparison of financial statement of one year with that of another is possible onlywhen _______ concept is followed

Valuation of stock in accounting follows the principle of cost price or ____ whichever islower.

The principle “Debit the receiver and credit the giver” is related to_____

Cash A/c is a ________ A/c.

Capital A/c is a _______ A/c.

If nothing is written about the accounting assumption to be followed it is presumed that

Mr. X sold goods to Mr. Y ask Mr. X to keep the goods with him for some time

As per accrual concept, which of the followings is not true

Cash a/c is a ______

Debit the receiver & credit the giver is _____ account

Which of the following factor is not considered while selecting accounting policies?

Which of the following provide frame work and accounting policies so that the financialstatements of different enterprises become comparable.

Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balancesheet will be

The Market price of good declined than the cost price. Then the concept that plays a keyrole is ____

If the Market value of closing Inventory is less than its cost price, inventory will he shownat ____

According to which concept, the proprietor pays interest on drawings

Cost concept basically recognises ____

The policy of anticipate no profit and provide for all possible losses arise due to the conceptof _____

Small items like, pencils, pens, files, etc. are written off within a year according to ___concept.

Value of goods withdrawn by the proprietor for his personal use should be credited to ____

Human resources will not appear in the balance sheet according to ______ concept.

_______ is root cause for financial accounting

In income measurement & recognisation of assets & liabilities which of the followingconcepts goes together?

In profit and loss account, if credit is more than the debit, the difference is

All revenue incomes are credited to

Profit and loss account is a

Interest earned is a