Financial Accounting MCQ Questions and Answers Quiz

21. Amount received during the course of trading operations are called

  1. Capital receipt
  2. Revenue expenditure
  3. Capital expenditure
  4. Revenue receipt

22. Which transaction is one where in items are exchanged for other items.

  1. Cash
  2. Credit
  3. Barter
  4. None of these.

23. What represents the amount invested by owner in to business

  1. Cash
  2. Stock
  3. Capital
  4. None of these.

24. Transit items may either be

  1. Cash and credit transit
  2. Cash in transit & goods in transit
  3. Credit and barter transit
  4. None of these.

25. A shipment of goods by a manufacturer to an agent tobe sold by him on commission basis on the risk    and account of the former called -------------------

  1. Consigning
  2. Consignment
  3. Agreement
  4. None of these.

26. Pass entry for consignors expenses

  1. Consignment a/c DrTo Cash      
  2. Consignment a/c Dr    To credit      
  3. Cash a/c Dr    To consignee     
  4. None of these.

27. The person who send the goods to the agent to be sold by him on commission is calle

  1. Consignor
  2. Consignee
  3. Merchant
  4. None of these

28. The head office prepares a combined balance sheet called ----------------- 

  1. Consolidated balance sheet
  2. Balance sheet of branch
  3. Head balance sheet
  4. None of these.

29. Any amount spend on increasing the earning capacity of a business is known as  

  1. Contigent liability  
  2. Capital expenditure
  3. Revenue expenditure
  4. Capital receipt

30. Expenditure incurred during one year known as  

  1. Contigent  liability
  2. Capital expenditure
  3. Revenue expenditure
  4. Capital receipt
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MCQ Multiple Choice Questions and Answers on Financial Accounting

Financial Accounting Question and Answer