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Free Download as PDF of Financial Accounting Questions with Answers as per exam pattern, to help you in day to day learning. We provide all important questions and answers for all Exam.
1. Under the diminishing balance method depreciation is calculated on _______.
- [A] original value.
- [B] written down value.
- [C] scrap value.
- [D] market value.
Answer: Option [B]
2. The amount of depreciation charged on machinery will be debited to _______.
- [A] machinery account.
- [B] depreciation account.
- [C] cash account
- [D] none of the above.
Answer: Option [B]
3. The accounts of non-trading concerns are generally maintained according to
- [A] Mercantile accounting system.
- [B] Cash accounting system.
- [C] Double entry book keeping system.
- [D] Single entry system.
Answer: Option [C]
4. The permanent, continuing and gradual shrinkage in the book value of a fixed asset is called
- [A] depreciation .
- [B] appreciation.
- [C] reduction.
- [D] computation.
Answer: Option [A]
5. Loss of usefulness occasioned by improved production methods is known as _______
- [A] physical deterioration.
- [B] obsolescence.
- [C] disuse.
- [D] none of the above.
Answer: Option [B]
6. The main source of income for non-trading concern is
- [A] Subscription
- [B] Sales
- [C] Dividend on investment
- [D] entrance fee
Answer: Option [A]
7. If the asset is sold, the provision for depreciation relating to the asset sold is transferred to _______.
- [A] asset account.
- [B] liability account
- [C] P & L account.
- [D] none of the above.
Answer: Option [A]
8. The asset account appears in the books at original cost when a ______.
- [A] P & L account is maintained.
- [B] balance sheet is maintained.
- [C] provision for depreciation account is maintained.
- [D] provision for depreciation account is not maintained.
Answer: Option [C]
9. Fire insurance and repairs on assets should be divided among the different departments on the basis
of _________.
- [A] light points.
- [B] H.P of machine.
- [C] value of each assets
- [D] floor area.
Answer: Option [C]
10. Lighting expenses should be divided among the different departments on the basis of _________
- [A] light points.
- [B] H.P of machine.
- [C] sales ratio.
- [D] none of the above.
Answer: Option [A]
11. Expenses which cannot be apportioned to department must be shown in the _______.
- [A] balance sheet.
- [B] trading account.
- [C] P & L account.
- [D] P & L Appropriation account.
Answer: Option [C]
12. When goods are transferred from one department to other, the department transferring the goods
should be ___________.
- [A] debited.
- [B] credited
- [C] added.
- [D] none of the above.
Answer: Option [B]
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