Financial Accounting Questions and Answers | Online Quiz for Practice

46. The amount of reserve deducted from the

1. Gross profit
2. Managers commission
3. Net profit
4. None of these

47. The accounts for the dependent branches are maintained only in the books of

1. Head office
2. Sub office
3. Main office
4. None of these

48. Adjustment given in trial balance is known as

1. Hidden adjustment
2. Partly adjustment
3. Adjustment
4. Provision for discount on debtors

49. Trading and profit and loss account is known as ----------------------- statement

1. Income
2. Expense
3. Position
4. Revenue

50. Prepaid expenses is ------------------- to the business

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

51. The term ------------------ denotes the cost of services and things used for earning revenue

1. Income
2. Expense
3. Loss
4. None of these.

52. Which Expenditure is incurred to maintain the business or to keep the assets on good working condition

1. Income
2. Dividend
3. Revenue
4. None of these.

53. Balance sheet show -------------------- and ------------------- of fund

1. Incomes and losses
2. Sources and applications
3. Debit and Credit
4. Asset and liability

54. The process of transferring items from branch books to the head office books and the preparation ofconsolidated balance sheet is called --------------------- 

1. Incorporation of branch trial balance
2. Trial balance
3. Branch balance sheet
4. None of these.

55. Branches not keeping full system of accounting called

1. Independent branches
2. Partial branches
3. Dependent branches
4. None of these

56. In which stage short working  arise

1. Initial stage of production
2. Sales
3. Buying of raw materials
4. Last stage of production

57. Branches may be classified in to

1. Inland branches and foreign branches
2. Account branches and proper branch
3. Main branch and subordinate branch
4. None of these

58. Assets having definite shape and physical existence are called

1. Intangible asset
2. Current asset
3. Fictions asset
4. Tangible asset

59. Transaction between branches are called------------- 

1. Inter- branch transactions
2. Branch transaction
3. Internal transaction
4. None of these.

60. What is the journal entry of interest on capital  

1. Interest on capital a/c  Dr  To capital a/c
2. Drawings a/c Dr To interest on drawings
3. Profit &loss a/c Dr To discount Debtors
4. Capital a/c Dr To Interest on capital.