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Financial Accounting MCQs | Financial Accounting Short Questions and Answers

41 M/s Stationery Mart will debit the purchase of stationery to
[A] General Expenses A/c
[B] Stationery A/c
[C] Purchases A/c
[D] None
Answer: Purchases A/c
42 Debit the receiver & credit the giver is........ account
[A] Nominal
[B] Real
[C] Personal
[D] All the above
Answer: Personal

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43 A trader calculated his profit as Rs.150000 on 31/03/2014. It is an
[A] Event
[B] Transaction
[C] Transaction as well as event
[D] Neither transaction nor event
Answer: Event
44 Profit and loss is calculated at the stage of
[A] Summarising
[B] Recording
[C] Posting
[D] Classifying
Answer: Summarising
45 Sales made to Mahesh for cash should be debited to
[A] Mahesh Account
[B] Sales account
[C] Cash account
[D] Purchase account
Answer: Cash account
46 A trader has made a sale of Rs.75,500 out of which cash sales amounted to Rs.25,500. He showed trade receivables on 31-3-2014 at Rs.25,500. Which concept is followed by him?
[A] Accrual
[B] Going concern
[C] Cost
[D] Money measurement
Answer: Accrual
47 If wages are paid for construction of business premises.......A/c is credited and........A/c is debited.
[A] Cash, Premises
[B] Wages, Cash
[C] Premises, Cash
[D] Cash, Wages
Answer: Cash, Premises
48 Value of goods withdrawn by the proprietor for his personal use should be credited to
[A] Purchases A/c
[B] Capital A/c
[C] Sales A/c
[D] Drawings A/c
Answer: Purchases A/c
49 Small items like, pencils, pens, files, etc. are written off within a year according to _ concept.
[A] consistency
[B] Conservatism
[C] Realisation
[D] Materiality
Answer: Materiality
50 Business enterprise is separate from its owner according to......concept.
[A] Entity concept
[B] Money measurement concept
[C] Matching concept
[D] Dual aspect concept
Answer: Entity concept
51 The policy of anticipate no profit and provide for all possible losses arise due to the concept of
[A] Conservatism
[B] Consistency
[C] Disclosure
[D] Matching
Answer: Conservatism
52 According to which concept, the proprietor pays interest on drawings
[A] Entity concept
[B] Accrual concept
[C] Conservatism concept
[D] Dual Aspect concept
Answer: Entity concept
53 If the Market value of closing Inventory is less than its cost price, inventory will he shown at
[A] Fair Market value
[B] Both
[C] Marketable value
[D] none
Answer: Marketable value
54 The Market price of good declined than the cost price. Then the concept that plays a key role is
[A] Realization
[B] Materiality
[C] Going concern concept
[D] None of these
Answer: Realization
55 Cash a/c is a.........
[A] Real a/c
[B] Nominal
[C] Personal
[D] None
Answer: Real a/c
56 Capital A/c is a ......A/c.
[A] Nominal
[B] Real
[C] Personal
[D] None of these
Answer: Personal
57 Sales –Gross Profit =
[A] Cost of goods sold
[B] Net sales
[C] Gross Sales
[D] Liabilities
Answer: Cost of goods sold
58 Which of the following is a Real A/c?
[A] Building A/c
[B] Shyam A/c
[C] Rent A/c
[D] Capital A/c
Answer: Building A/c
59 Cash A/c is a ......A/c.
[A] Real
[B] Personal
[C] Nominal
[D] None
Answer: Real
60 As per the Matching concept, Revenue –? = Profit
[A] Liabilities
[B] Losses
[C] Assets
[D] Expenses
Answer: Expenses

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