laboursonline – MCQs, Mock Tests | Business Studies Financial Accounting MCQ Part

Indirect expenses is also called____________.

1. prime cost.
2. common expenses.
3. direct expenses.
4. management expenses.

✅ Correct Answer: 2

under branch account debtors system cash sales is shown in the _____________.

1. debit
2. credit
3. asset
4. none

✅ Correct Answer: 4

Expenses which cannot be apportioned to department must be shown in the _____.

1. balance sheet.
2. trading account.
3. P & L account.
4. P & L Appropriation account.

✅ Correct Answer: 3

When goods are transferred from one department to other department they are called __________.

1. inter-departmental transfers.
2. outer-departmental transfers.
3. not a transfer.
4. regular transfer.

✅ Correct Answer: 1

When goods are transferred from one department to other the department transferring the goods should be ___________.

1. debited.
2. credited.
3. added.
4. subtracted

✅ Correct Answer: 2

When goods are transferred from one department to other the department transferring the goods should be credited and department receiving the goods should be _________.

1. debited.
2. credited.
3. added.
4. subtracted

✅ Correct Answer: 1

In departmental accounts expenses like director fees interest is transferred to ______.

1. balance sheet.
2. trading account.
3. general P & L account.
4. P & L Appropriation account.

✅ Correct Answer: 3

The departmental accounting enables a business firm to maximize _________.

1. profit.
2. losses.
3. cash.
4. assets .

✅ Correct Answer: 1

Branch which does not maintain its own set of books is ______________.

1. dependent branch.
2. independent branch.
3. foreign branch.
4. local branch .

✅ Correct Answer: 1

The business policies and the administration of a branch are wholly controlled by the head office the type of branch is __________.

1. dependent branch.
2. independent branch.
3. foreign branch.
4. local branch .

✅ Correct Answer: 2

A branch set up merely for booking orders which are executed by head office is ____.

1. dependent branch.
2. independent branch.
3. local branch .
4. foreign branch.

✅ Correct Answer: 1

Branches not keeping full system of accounting are ________.

1. independent branch.
2. dependent branch.
3. local branch .
4. foreign branch.

✅ Correct Answer: 2

All branch expenses such as rent salary are paid by the head office in case of _____.

1. independent branch.
2. local branch .
3. local branch .
4. dependent branch.

✅ Correct Answer: 4

Dependent branch make _______.

1. only cash sales.
2. only credit sales.
3. cash and credit sales.
4. installment sales.

✅ Correct Answer: 3

Under stock and debtors system the head office opens _________.

1. branch adjustment account.
2. branch debtors account.
3. . branch creditors account .
4. branch cash account.

✅ Correct Answer: 1

Which of the following is to be recorded in an income and expenditure account?

1. Purchase of a fixed asset
2. Capital expenditure incurred on a fixed asset
3. Profit on the sale of a fixed asset
4. Sale of a fixed asset

✅ Correct Answer: 3

Under branch accounts debtors system the depreciation of an asset is _______.

1. show in debtors account.
2. shown in debit side of branch account.
3. not shown in branch account .
4. shown in credit side of branch account.

✅ Correct Answer: 3

Under branch accounts debtors system opening balance of assets are recorded in ____.

1. credit side.
2. debit side.
3. first credit and debit side.
4. first debit and credit side.

✅ Correct Answer: 1

Under branch accounts debtors system closing balance of assets are recorded in ________.

1. credit side.
2. debit side.
3. first credit and debit side.
4. first debit and credit side.

✅ Correct Answer: 1

Under branch accounts debtors system opening balance of liabilities are recorded in ___________.

1. first credit and debit side.
2. first debit and credit side.
3. credit side.
4. debit side.

✅ Correct Answer: 3

Under branch accounts debtors system closing balance of liabilities are recorded in _________.

1. first credit and debit side.
2. first debit and credit side.
3. credit side.
4. debit side.

✅ Correct Answer: 4

Under branch accounts debtors system goods sent to branch account is recorded in _________.

1. debit side.
2. credit side.
3. asset side .
4. liabilities side.

✅ Correct Answer: 3

Under branch accounts debtors system goods sent to branch account is recorded in _________.

1. debit side.
2. credit side.
3. asset side .
4. liabilities side.

✅ Correct Answer: 1

Under branch accounts debtors system loading on goods sent to branch adjusted in ________.

1. debit side.
2. credit side.
3. asset side .
4. liabilities side.

✅ Correct Answer: 2

Under branch accounts debtors system bad debts discount allowed to debtors is ________.

1. shown in debit side.
2. shown in credit side.
3. shown in asset side .
4. not shown.

✅ Correct Answer: 2

Under branch accounts debtors system credit sales is _______.

1. shown in debit side.
2. shown in credit side.
3. shown in asset side .
4. not shown.

✅ Correct Answer: 1

The difference between goods sent by head office and received by the branch is known as ___________.

1. goods in transit.
2. goods in godown.
3. goods in production.
4. goods in warehouse.

✅ Correct Answer: 1

Under stock and debtors system of branch account branch adjustment account is opened when goods sent to branch is at ________.

1. cost price.
2. invoice price.
3. market price.
4. normal price.

✅ Correct Answer: 2

Under stock and debtors system of branch account the account prepared to record all the transactions relating to branch debtors is recorded in ________.

1. branch expenses account.
2. branch adjustment account.
3. branch debtors account.
4. branch creditors account.

✅ Correct Answer: 3

In pure single entry which account is recorded?

1. Personal.
2. Real.
3. Nominal.
4. Asset.

✅ Correct Answer: 1

All personal real and nominal accounts are opened in ________.

1. single entry system.
2. double entry system.
3. accrual system.
4. mercantile system.

✅ Correct Answer: 2

Only personal account and cash account are opened in ________.

1. single entry system.
2. double entry system.
3. accrual system.
4. mercantile system.

✅ Correct Answer: 1

Trial balance can be prepared in _________.

1. single entry system.
2. double entry system.
3. accrual system.
4. mercantile system.

✅ Correct Answer: 2

Honorarium is a kind of remuneration paid to a person who is not the employee of a non-profit organization. Which of the following statements is true about the honorarium payment?

1. �Its a revenue expenditure
2. �Its a Capital expenditure
3. It is not recorded in the books of accounts
4. None of the above

✅ Correct Answer: 1

Which of the following is the accounting equation for a non-profit organization?

1. Asset = Capital + Liabilities
2. Capital + Liabilities = Assets
3. Accumulated fund + Liabilities = Assets
4. Liabilities = Asset + Accumulated fund

✅ Correct Answer: 3

Balance sheet cannot be prepared ________.

1. in single entry system.
2. in double entry system.
3. with the help of cash book.
4. with the help of bank account.

✅ Correct Answer: 1

In single entry system net worth method is also called ________.

1. double entry system .
2. mercantile system.
3. statement of affairs method.
4. accrual system.

✅ Correct Answer: 3

Difference between net worth at the beginning of the year and at the end of the year represents _________.

1. capital balance.
2. cash balance.
3. pass book balance.
4. profit or loss.

✅ Correct Answer: 4

Opening capital can be found by preparing ________.

1. cash book.
2. bank account.
3. statement of affairs.
4. statement of bank pass book.

✅ Correct Answer: 3

A statement of affairs is just like a _________.

1. balance sheet.
2. profit and loss account.
3. cash account.
4. trading account.

✅ Correct Answer: 1

In statement of affairs assets are shown on the __________.

1. right hand side.
2. left hand side.
3. right hand side top.
4. right hand side bottom.

✅ Correct Answer: 1

In statement of affairs liabilities are shown on the __________.

1. right hand side.
2. left hand side.
3. right hand side top.
4. right hand side bottom.

✅ Correct Answer: 2

Under single entry system closing capital can be found by preparing a statement of affairs ____________.

1. at the end of the year.
2. at the beginning of the year.
3. at the end of every month.
4. at the end of every quarter.

✅ Correct Answer: 1

Under single entry system opening capital can be found by preparing a statement of affairs ____________.

1. at the end of the year.
2. at the beginning of the year.
3. at the end of every month.
4. at the end of every quarter.

✅ Correct Answer: 2

Under single entry system in net worth method drawings is added with _______.

1. opening capital.
2. closing capital.
3. additional capital.
4. drawings.

✅ Correct Answer: 2

Under single entry system in net worth method additional capital is deducted with __________.

1. opening capital.
2. closing capital.
3. additional capital.
4. drawings.

✅ Correct Answer: 2

Under single entry system in net worth method opening capital is subtracted from _________.

1. opening capital.
2. closing capital.
3. additional capital.
4. drawings.

✅ Correct Answer: 2

Under single entry system in conversion method a total debtors account is prepared to find out ___________.

1. credit sales.
2. cash sales.
3. credit purchases.
4. cash purchases.

✅ Correct Answer: 1

Under single entry system in conversion method a total debtors account is prepared to find out __________.

1. credit sales.
2. cash sales.
3. credit purchases.
4. cash purchases.

✅ Correct Answer: 4

Subscription received but not yet earned is considered as an ____________.

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

✅ Correct Answer: 2

Total creditors account is prepared to find out ___________.

1. credit sales.
2. cash sales.
3. credit purchases.
4. cash purchases.

✅ Correct Answer: 3

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Financial Accounting MCQ Part – 2