Final Accounts MCQs

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MCQs 1 To 10

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1. Trading account is prepared to find out?

(a) Gross profit or loss

(b) Net profit or loss

(d) None

Correct! Wrong!

2. Opening stock is?

(a) Debited in trading account

(b) Credited in trading account

(d) Debited in profit and loss account

Correct! Wrong!

3. Which one of the following assets could be described as a current asset?

(a) Machinery to manufacture goods for resale

(b) Stock of goods for resale

(d) Land on which the buildings stand

Correct! Wrong!

4. Retained Earnings is classified as which type of account?

(a) Asset

(b) Liability

(d) Stockholders' equity

Correct! Wrong!

5. All of the following are stockholders’ equity accounts except?

(a) Investment in Stock

(b) Capital Stock

(d) Retained Earnings

Correct! Wrong!

6. Wages is an example of?

(a) Capital expenses

(b) Indirect expenses

(d) All of before

Correct! Wrong!

7. Profit is the difference between?

(a) Assets and liabilities

(b) Assets and equities

(d) The assets received for goods and services and the amounts used to provide the goods and services

Correct! Wrong!

8. Tangible assets used in the business that are of a relatively fixed or permanent nature are called?

(a) Fixed assets

(b) Revenues

(d) Liabilities

Correct! Wrong!

9. Profit and loss account would not include?

(a) Salaries

(b) Drawings

(d) Carriage outwards

Correct! Wrong!

10. Current liabilities are those obligations which are to be satisfied within?

(a) 6 months

(b) 1 year

(d) Both A & B

Correct! Wrong!

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MCQs 11 To 20

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11. Goodwill would be reported in the ______________ section of a classified balance sheet?

(a) Current assets

(b) Long-term liabilities

(d) Long-term investments

Correct! Wrong!

12. Which of the following is recorded under long term liabilities section of the balance sheet?

(a) Creditors

(b) Debentures

(d) Provision for Taxation

Correct! Wrong!

13. Revenue generated other than principle activities of the business are called?

(a) Income

(b) Profit

(d) All of above

Correct! Wrong!

14. When opening stock given in trial balance, then it will effect?

(a) Trading account only

(b) Balance sheet only

(d) Both Trading account and Balance sheet

Correct! Wrong!

15. Which of the following liabilities are not related to the operating cycle?

(a) Wages payable

(b) Accounts payable

(d) Bonds payable

Correct! Wrong!

16. Which of the following would not be classified a long-term liability?

(a) Current maturities of long-term debt

(b) Bonds payable

(d) Lease liabilities

Correct! Wrong!

17. All of the following are property, plant, and equipment except?

(a) Machinery

(b) Supplies

(d) Buildings

Correct! Wrong!

18. The Freight-in account?

(a) Increases the cost of merchandise purchased

(b) Is contra to the Purchases account

(d) Has a normal credit balance

Correct! Wrong!

19. Net sale is sales less?

(a) Sales discounts

(b) Sales discounts and sales returns and allowances

(d) Sales returns

Correct! Wrong!

20. Summers, Inc. uses the allowance method to account for bad debts. The entry to record the write-off of a customer’s account balance decreases?

(a) Assets and owners’ equity

(b) Assets and decreases liabilities

(d) None of these answers is correct

Correct! Wrong!

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Back To Financial Accounting MCQs

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More Interest

Adj. T. Ba. to Post-closing T. B.

Final Accounts Problems

Depreciation

Depreciation MCQs

Depreciation Problems

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

Final Accounts MCQs

MCQs 1 To 10

Click The Option and See Result

1. Trading account is prepared to find out?

2. Opening stock is?

3. Which one of the following assets could be described as a current asset?

4. Retained Earnings is classified as which type of account?

5. All of the following are stockholders’ equity accounts except?

6. Wages is an example of?

7. Profit is the difference between?

8. Tangible assets used in the business that are of a relatively fixed or permanent nature are called?

9. Profit and loss account would not include?

10. Current liabilities are those obligations which are to be satisfied within?

MCQs 11 To 20

Click The Option and See Result

11. Goodwill would be reported in the ______________ section of a classified balance sheet?

12. Which of the following is recorded under long term liabilities section of the balance sheet?

13. Revenue generated other than principle activities of the business are called?

14. When opening stock given in trial balance, then it will effect?

15. Which of the following liabilities are not related to the operating cycle?

16. Which of the following would not be classified a long-term liability?

17. All of the following are property, plant, and equipment except?

18. The Freight-in account?

19. Net sale is sales less?

20. Summers, Inc. uses the allowance method to account for bad debts. The entry to record the write-off of a customer’s account balance decreases?

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