Financial Accounting Multiple Choice Questions and Answers

81. Which type of account are entered in profit & loss a/c

1. Nominal account
2. Personal account
3. Real account
4. Other

82. What are the two types of losses of goods.

1. Normal and abnormal losses
2. Simple loss and pure loss
3. Executive and execute loss
4. None of these

83. Value of goods remaining at the end of a period

1. Opening stock
2. Closing stock
3. Stock
4. None of these.

84. What is the equation of gross profit  

1. Opening stock +Purchase +Direct expense – Closing stock
2. Sales –Cost of goods sold
3. Sales returns –Cost of goods sold
4. Sales + Cost of goods sold

85. Minning royalty and patent royalty are payable on the basis of

1. Output
2. Sales
3. Output and sale
4. None of these

86. The commission given by consignor to the consignee for taking additional risks of recovery of debts on account of sales made on credit is known as ----------------------

1. Over riding commission
2. Delcredre  commission
3. Normal commission
4. None of these.

87. The agreement between business house and the owner of the right is called

1. Patent Right
2. Royalty agreement
3. Minning agreement
4. Copy right

88. Outstanding expenses are those expenses which have became---------during the accounting year.

1. Payable
2. Payed
3. Received
4. Receivable

89. Balance sheet is known as ----------------- statement  

1. Positional
2. Expense
3. Income
4. Expenditure

90. Trading account show ------------------- incomes and losses

1. Production
2. Sales
3. Manufacturing
4. Personal