Financial Accounting Multiple Choice Questions and Answers

61. Branches may be classified in to

1. Inland branches and foreign branches
2. Account branches and proper branch
3. Main branch and subordinate branch
4. None of these

62. Assets having definite shape and physical existence are called

1. Intangible asset
2. Current asset
3. Fictions asset
4. Tangible asset

63. Transaction between branches are called------------- 

1. Inter- branch transactions
2. Branch transaction
3. Internal transaction
4. None of these.

64. What is the journal entry of interest on capital  

1. Interest on capital a/c  Dr  To capital a/c
2. Drawings a/c Dr To interest on drawings
3. Profit &loss a/c Dr To discount Debtors
4. Capital a/c Dr To Interest on capital.

65. Which is the statement sent by the consignee to the consignor regarding the sale of goods consigned.

1. Invoice
2. Bill
3. Account sales
4. None of these.

66. The price of goods sent by head office to branch at a price higher than cost price called

1. Invoice price
2. Actual price
3. Unloaded price
4. None of these.

67. Which is one which has been sent by one party but not received by the other before theclosing books of accounts.

1. Item of transaction
2. Transit item
3. Credit transaction
4. None of these.

68. Principal books of accounting is known as

1. Journal
2. Profit and loss
3. Ledger
4. Balance sheet

69. What is an example of wasting asset

1. Land
2. Fixed asset
3. Stock
4. Mines

70. Who is the person take property on the lease agreement

1. Lessor
2. Lessee
3. Payee
4. None of these