BBA II SEMESTER - External Exam

Financial A/cing
Financial Accounting MCQs. 40 Questions.

Q 1. What is Accounting?
A. Recording Of Business Transactions
B. Observing Business Transactions
C. Auditing the Business Transactions
D. All of the above

Q 2. How Many systems of Accounting are there?

A. Single Entry System
B. Double Entry System
C. Triple Entry System
D. All of the above

Q 3. A person who brings capital into the business is ?

A. A Debtor
B. A Creditor
C. A Proprietor
D. All of the above

Q 4. A person who supplies goods to the firm is ?

A. A Debtor
B. A creditor
C. An Owner
D. A banker

Q 5. What is a Journal Entry?

A. Original Entry
B. Secondary Entry
C. Triple Entry
D. All of the above

Q 6.The practice of appending notes regarding contingent liabilities in accounting

statement is in pursuant to...?
A. Convention of Consistency
B. Convention of Conservatism
C. Convention of Materiality
D. Convention of Disclosure

Q 7. P&L a/c is prepared for one year by following ...?

A. Consistency Concept
B. Conservatism Concept
C. Time Period Concept
D. All of the above

Q 8.The amount of salary paid to Suresh is debited to...?

A. Suresh a/c
B. Salaries a/c
C. Cash a/c
C.P&L a/c

Q 9. The balance of purchase returns book is always...?

A. Debit
B. Credit
C. Debit or credit
D. Neither debit nor credit

Q 10.Purchases Book Records...?

A. All Purchases
B. All Cash Purchases
C. All credit Purchases
D. All credit purchases of Goods

Q 11.Trial Balance is prepared from which book

A. Journal
B. Ledger
C. Cash Book
D. None of these

Q 12. Trial Balance is...?

A. An account
B. A statement
C. a Schedule
D. None of these

Q 13. Purchase of Furniture is debited to ...?

A. Purchases a/c
B. Goods a/c
C. furniture a/c
D. None of these

Q 14.Closingstock in Trial Balance implies that...?

A. It is already adjusted in opening stock
B. It is already adjusted in Purchases a/c
C. it is already adjusted in cost of sales
D. None of these

Q 15.Income received in advance by a business unit is?

A. An asset
B. A liability
C. A loss
D. A profit

Q !6. Prepaid expenses are ?

A. An asset
B. A liability
C. A loss
D. A profit

Q 17.Which of the following will not appear in P& L a/c...?

A. Drawings
B. Bad debts
C. Provision for doubtful debts
D. Reserve for discount on creditors

Q 18.Interest on drawings to the business is ...?

A. Income
B. Expense
C. Gain
D. Loss

Q 19. Interest on capital to the business is

A. Income
B. Expense
C. Gain
D. Loss

Q 20.Outstanding salaries are shown as...?

A. An expense
B. A liability
C. An asset
D. All of these

Q 21. Which of the following is current liabiity?

A. Prepaid expense
B. Trade marks
C. Discount on issue of share
D. Out standing salaries

Q 22. The assets which are purchased for the use in busines not for resale are
known as...?
A. Current Assets
B. Fixed Assets
C. Fictitious Assets
D. None

Q 23.Payment of Income Tax for a sole trader is ...?

A. Business Expense
B. Personal Expense
C. Provision for expenses
D. Provision for taxes

Q 24.Guarantor's Liability is...?

A. Current Liability
B. Fixed Liability
C. Contingent Liability
D. None.

Q 25.The Income and Expenditure a/c begins with...?

A. Debit Balance
B. Credit Balance
C. No Balance
D. None

Q 26.Entrance fees is generally...?

A. Capitalised
B. Debited to I& E a/c
C. Credited to I&E a/c
D. Shown as an asset

Q 27.Depreciation is Calculated on
A. Current Assets
B. Fixed Assets
C. Fictitious Assets
D. All of the above

Q 28. Depreciation in Straight Line Method is ...

A. Increases every year
B. Decreases every year
C. Remains constant
D. Either decreases or increases

Q 29.Goodwill is...?
A. Fixed Asset
B. Current Asset
C. Fictitious Asset
D. Not an Asset

Q 30.All Expenses not relatin to business are debited to ?

A. Profit and Loss a/c
B. Trading a/c
C. Drawings a/c
D. Losses a/c

Q 31.Statement sent by Consognor to Consignee is...?

A. Proforma Invoice
B. Account Sales
C. Trial Balance
D. Bank Reconsiliation Statement

Q 32. How many types of commission are there in consignment?

A. Normal Commission
B. Delcredere Commission
C. Over riding Commission
D. All of the above.

Q 33. Donations received by a club are ...?

A. Revenue items
B. Capital items
C. Income from donars
D. Gain from donars.

Q 34. Subscriptions received by a club are ...?

A. Revenue items
B. Capital items
C. Income from donars
D. Gain from donars.

Q 35. Honourorium paid by a club is ...?

A. Revenue items
B. Capital items
C. Income from donars
D. Gain from donars.

Q 36.Rent from Lecture Hall in a club is ...?

A. Revenue items
B. Capital items
C. Income from donars
D. Gain from donars.

Q 37. Manufacturing a/c is prepared by ..?

A. Trading Concerns
B. Manufacturing Concerns
C. Trade Malls
D. Hotels and Restaurents

Q 38. Receipts and Payments a/c is prepared by ..?

A. Trading Concerns
B. Manufacturing Concerns
C. Non Trading Concerns
D. Hotels and Restaurents

Q 39. Profit and Loss a/c is prepared by ..?

A. Trading Concerns
B. Manufacturing Concerns
C. Non Trading Concerns
D. All of the above

Q 40. Trade espenses are debited to...?

A. Trading a/c
B. Profit and Loss a/c
C. Manufacturing a/c
D. Balance Sheet