Financial Accounting MCQ Questions and Answers Quiz

111. Trading account is

  1. Statement
  2. Positional a/c
  3. Capital a/c
  4. Account

112. Branches are units physically segregated from the main office called

  1. Sub registrar office
  2. Head office
  3. Central Govt.
  4. None of these.

113. In which principal transaction and events are recorded in the books of account and presented in thefinancial statement in accordance with their substance and not legality.

  1. Substance over legal form
  2. Time line principal
  3. Materiality principal
  4. Consistency principal

114. Assets having no physical existence but are represented by rights in certain things are called---------------- 

  1. Tangible asset
  2. Intangible asset
  3. Contingent asset
  4. None of these

115. Why use prepare  trial balance

  1. To check arithmetical accuracy of a/c
  2. To know the financial position
  3. To know the gross profit
  4. To know the capital of the firm

116. For what use are preparing profit and  loss a/c

  1. To find out net profit or net loss
  2. To find out gross profit or gross loss
  3. To know closing stock
  4. To determine the sales

117. In which method trial balance is prepared with the balance of ledger account

  1. Total amount Method
  2. Balance Method
  3. Grouping
  4. Marshalling

118. Capital receipts will not affect ------------------- and ------------------a/c

  1. Trading  & profit & loss a/c
  2. Trading account  
  3. Profit and loss a/c and balance sheet
  4. Trading a/c and trial balance

119. Adjustment given in the ---------------------- is known as hidden adjustment

  1. Trial balance
  2. Profit & loss a/c
  3. Trading
  4. Ledger

120. The lessee may be permitted to recoup short working for a few years only is called

  1. Unrestricted
  2. Restricted
  3. Minimum rent
  4. None of these
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MCQ Multiple Choice Questions and Answers on Financial Accounting

Financial Accounting Question and Answer