Financial Accounting Multiple Choice Questions and Answers

41. Which concept facilitates recording of business events on a uniform basis.

1. Going concern
2. Accounting entity
3. Money measurement
4. None of these.

42. Which principal have separate entity

1. Going concern concept
2. Money measurement concept
3. Accounting period concept
4. Accounting entity concept

43. Things which are purchased by business for resale called

1. Goods
2. Closing stock
3. Lease housing
4. None of these.

44. What represents goods sent by head office to the branch or by the branch to the head office but not received by other

1. Goods in transit
2. Cash in transit
3. Barter transit
4. None of these

45. Managers commission is calculated on

1. Gross profit
2. Notional profit
3. Net profit
4. Sales

46. The amount of reserve deducted from the

1. Gross profit
2. Managers commission
3. Net profit
4. None of these

47. The accounts for the dependent branches are maintained only in the books of

1. Head office
2. Sub office
3. Main office
4. None of these

48. Adjustment given in trial balance is known as

1. Hidden adjustment
2. Partly adjustment
3. Adjustment
4. Provision for discount on debtors

49. Trading and profit and loss account is known as ----------------------- statement

1. Income
2. Expense
3. Position
4. Revenue

50. Prepaid expenses is ------------------- to the business

1. Income
2. Expense
3. Asset
4. Liability