Financial Accounting Multiple Choice Questions and Answers

51. Things which are purchased by business for resale called

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

52. 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

53. Managers commission is calculated on

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

54. The amount of reserve deducted from the

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

55. 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

56. Adjustment given in trial balance is known as

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

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

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

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

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

59. The term ------------------ denotes the cost of services and things used for earning revenue

1. Income
2. Expense
3. Loss
4. None of these.

60. Which Expenditure is incurred to maintain the business or to keep the assets on good working condition

1. Income
2. Dividend
3. Revenue
4. None of these.