100 Solved MCQs of Mgt101 Financial Accounting pdf

100 Solved MCQs of Mgt101 Financial Accounting pdf with Answers for Preparation of MBA, BBA, MCA, BCA, & Competitive Examinations

100 Solved MCQs of Mgt101 Financial Accounting

1. The success of the business depends on factors.
a. Land
b. Labor and capital
c. Management
d. All of the above
Answer: (d)

2. ___ States that “anticipate no profits but provide for all possible losses.”
a. The Realization concept
b. Concept of prudence
c. Both a & b
d. The Accrual concept
Answer: (b)

3. Luca Fra Pacioli, ___ mathematician.
a. An Italian
b. An Indian
c. An American
d. None of the above
Answer: (c)

4. A voucher can be of
a. Two types
b. Three types
c. Four types
d. Six types
Answer: (b)

5. There are ___ elements of profit and loss accounts.
a. Two
b. Three
c. Four
d. Five
Answer: (a)

6. The term Credit is derived from
a. French word
b. Greek word
c. Latin word
d. None of the above
Answer: (c)

7. ___ is the residual interest of owners in assets over liabilities.
a. Expenses
b. Income
c. Equity
d. None of the above
Answer: (d)

8. ___ records goods returned to the supplier(s).
a. Salas daybook
b. Purchase daybook
c. Returns Inward book
d. Return outward book
Answer: (d)

9. ___ records credit sale of traded goods.
a. Purchase daybook
b. Sales daybook
c. Cashbook
d. None of the above
Answer: (b)

10. ___ of the cash book is not balanced
a. Discount column
b. Bank
c. Cash
d. All of the above
Answer: (a)

11. There are ___ types of primary books.
a. Two
b. Four
c. Six
d. Eight
Answer: (a)

12. The suffix “c/d” denotes
a. Carried down
b. Count down
c. Credit or debit
d. None of the above
Answer: (a)

13. Which of the following is a book of secondary entries/
a. Posting
b. Ledger
c. Account
d. None of the above
Answer: (b)

14. The account maintained by the bank for its customer is an
a. Pay-in-slip
b. Passbook
c. Mirror – version
d. None of the above
Answer: (b)

15. The bank reconciliation statement is
a. Not a part of books of accounts
b. A part of books of accounts
c. A part and parcel of books of accounts
d. Both b & c
Answer: (a)

16. ___ gives the details of transactions between the bank and the customer.
a. Reconciliation statement
b. Bank statement
c. Passbook
d. Cashbook
Answer: (a)

17. ___ is not a part of books of account.
a. Trial balance
b. P & L A/c
c. Trading A/c
d. Balance sheet
Answer: (a)

18. Trading account shows
a. Gross profit
b. Net profit
c. Notional profit
d. Both a & b
Answer: (a)

19. Omission of recording a transaction in the primary book is called
a. Error of principle
b. Error of omission
c. Both a & b
d. Error of commission
Answer: (b)

20. ___ shows the position of Assets and Liabilities of a business entity as on a particular date.
a. P & L A/c
b. P & L appropriation A/c
c. Balance sheet
d. Suspense Account
Answer: (c)

21. In India Corporate entities registered as per
a. Companies Act 1948
b. Companies Act 1956
c. Banking Regulation Act 1947
d. None of the above
Answer: (b)

22. Reserve is the part of
a. Profit
b. Dividend
c. Bonus
d. All of the above
Answer: (a)

23. Minute books are maintained as per
a. Sec 143
b. Sec 157
c. Sec 193
d. Sec 307
Answer: (c)

24. The abridged statements shall be audited and approved by the
a. Board of Directors
b. Accountant
c. Finance Manager
d. All of the above
Answer: (a)

25. Historical cost of inventories may be determined by using
a. FIFO
b. LIFO
c. Both a & b
d. Variable Costing Method
Answer: (c)