Financial Accounting Objective Question and Answer
Financial Accounting MCQ Multiple Choice Questions - Page 2 for Practice
31. Assets acquired for long term use in business called
Correct Answer is: Fixed asset
32. A person who owes money to the business is a
Correct Answer is: Debtor
33. Branches keeping full system of accounting is called
Correct Answer is: Independent branches
34. The head office prepares branch account to find out ------------------- earned by branch
Correct Answer is: Profit
35. Payment of monthly rent to land lord is
Correct Answer is: Economic event
36. What is short working?
Correct Answer is: Excess of minimum rent over actual royalty
37. What is the another term of minimum rent
Correct Answer is: Dead rent and fixed rent
38. Assets which have no real value but are shown in books of account for technical reasons are called
Correct Answer is: Fictions asset
39. Assets which are held for a short period called
Correct Answer is: Current asset
40. Recouping of short working arise in
Correct Answer is: Future
41. Which concept facilitates recording of business events on a uniform basis.
Correct Answer is: Money measurement
42. Which principal have separate entity
Correct Answer is: Accounting entity concept
43. Things which are purchased by business for resale called
Correct Answer is: Goods
44. What represents goods sent by head office to the branch or by the branch to the head office but not received by other
Correct Answer is: Goods in transit
45. Managers commission is calculated on
Correct Answer is: Notional profit
46. The amount of reserve deducted from the
Correct Answer is: Net profit
47. The accounts for the dependent branches are maintained only in the books of
Correct Answer is: Head office
48. Adjustment given in trial balance is known as
Correct Answer is: Hidden adjustment
49. Trading and profit and loss account is known as ----------------------- statement
Correct Answer is: Income
50. Prepaid expenses is ------------------- to the business
Correct Answer is: Asset
51. The term ------------------ denotes the cost of services and things used for earning revenue
Correct Answer is: Expense
52. Which Expenditure is incurred to maintain the business or to keep the assets on good working condition
Correct Answer is: Revenue
53. Balance sheet show -------------------- and ------------------- of fund
Correct Answer is: Sources and applications
54. The process of transferring items from branch books to the head office books and the preparation ofconsolidated balance sheet is called ---------------------
Correct Answer is: Incorporation of branch trial balance
55. Branches not keeping full system of accounting called
Correct Answer is: Dependent branches
56. In which stage short working arise
Correct Answer is: Initial stage of production
57. Branches may be classified in to
Correct Answer is: Inland branches and foreign branches
58. Assets having definite shape and physical existence are called
Correct Answer is: Tangible asset
59. Transaction between branches are called-------------
Correct Answer is: Inter-Â branch transactions
60. What is the journal entry of interest on capital
Correct Answer is: Interest on capital a/c  Dr  To capital a/c
