Financial Accounting Questions and Answers in Quiz Form 8 for Practice

106. Trading account is

1. Statement
2. Positional a/c
3. Capital a/c
4. Account

107. Branches are units physically segregated from the main office called

1. Sub registrar office
2. Head office
3. Central Govt.
4. None of these.

108. In which principal transaction and events are recorded in the books of account and presented in thefinancial statement in accordance with their substance and not legality.

1. Substance over legal form
2. Time line principal
3. Materiality principal
4. Consistency principal

109. Assets having no physical existence but are represented by rights in certain things are called---------------- 

1. Tangible asset
2. Intangible asset
3. Contingent asset
4. None of these

110. Why use prepare  trial balance

1. To check arithmetical accuracy of a/c
2. To know the financial position
3. To know the gross profit
4. To know the capital of the firm

111. For what use are preparing profit and  loss a/c

1. To find out net profit or net loss
2. To find out gross profit or gross loss
3. To know closing stock
4. To determine the sales

112. In which method trial balance is prepared with the balance of ledger account

1. Total amount Method
2. Balance Method
3. Grouping
4. Marshalling

113. Capital receipts will not affect ------------------- and ------------------a/c

1. Trading  & profit & loss a/c
2. Trading account  
3. Profit and loss a/c and balance sheet
4. Trading a/c and trial balance

114. Adjustment given in the ---------------------- is known as hidden adjustment

1. Trial balance
2. Profit & loss a/c
3. Trading
4. Ledger

115. The lessee may be permitted to recoup short working for a few years only is called

1. Unrestricted
2. Restricted
3. Minimum rent
4. None of these

116. Which principal is known as basic principal of accounting

1. verifiable  objective principal
2. matching principal
3. Dual aspect principal
4. Materiality principal

117. Which one of these not shown in trading account

1. Wages
2. Octroi
3. Closing stock
4. Carriage outward

118. Which loss is due to the nature of goods consigned

1. Actual loss
2. Simple loss
3. Abnormal loss
4. Normal loss

119. Royalty is an

1. Agreement
2. Contract
3. Mutual action
4. None of these

120. The modern system of accounting owes to

1. AICPA
2. Luca Pacioli
3. GAAP
4. None of these