Financial Accounting MCQ Questions and Answers for Practice

1. AICPA Means

1. American Institute of Certified Public Accountants
2. American Institute of Campus Prediction Ability
3. American Intellectual of Certified Public Accountants
4. American Institute of Certified Person Account

2. Expand AICPA

1. American Institute of Certified Public Accountants
2. American Institute of Corporate Public Account
3. Accounting Institutions of Conventions Public Account.
4. None of these.

3. Interest on drawings is charged on

1. Asset
2. Capital
3. Inventory
4. Drawing

4. Which is the material things or possessions of the business

1. Asset
2. Liability
3. Capital
4. None of these.

5. Any irrecoverable portion of sundry debtors is known as  

1. Bad debt
2. Further bad debt
3. Provision for bad debt
4. Provision for doubtful debts

6. Which book is known as total of debit and credit  

1. Balance sheet
2. Trial balance
3. Journal
4. Ledger

7. Which one is list of all account balances

1. Balance sheet
2. Ledger
3. Profit and loss a/c
4. Trial balance

8. Recording of financial transactions is done in

1. Books
2. Journal
3. Trial balance
4. None of these.

9. Which is an account prepared to record all expenses at branch.

1. Branch account
2. Expense account
3. Branch expense a/c
4. None of these.

10. Which account is prepared wth a view to ascertain the gross profit of branch.

1. Branch account
2. Branch adjustment a/c
3. Branch expense a/c
4. None of these.

11. Which account is prepared to exercise control over the branch cash.

1. Branch account
2. Branch expense account
3. Branch cash account
4. None of these.

12. On which condition we  made adjustment for closing stock as well as opening stock in the purchaseaccount

1. By buying credit purchase
2. By buying
3. Adjusted purchases  
4. On installment basic

13. Amount of cash or other assets withdrawn by owner for his personal purpose called

1. Capital
2. Drawing
3. Withdrawal of cash
4. None of these.

14. Interest on capital is credited to----------------------- A /C

1. Capital a/c
2. Proprietors a/c
3. Combine a/c
4. Interest on capital a/c

15. Rent paid, salary paid which type of expenditure

1. Capital expenditure
2. Revenue expenditure
3. Deferred revenue expenditure
4. Capital receipt