Financial Accounting - Questions & Answers for Competitive Exams | GkSeries

13. The departmental accounting enables a business firm to maximize _________.

• [A] profit.
• [B] losses.
• [C] cash.
• [D] assets.

Answer: Option [A]

14. The business policies and the administration of a branch are wholly controlled by the head office the type of branch is __________.

• [A] independent branch.
• [B] dependent branch.
• [C] local branch.
• [D] none of the above.

Answer: Option [B]

15. Branches not keeping full system of accounting are ________.

• [A] independent branch.
• [B] dependent branch.
• [C] local branch
• [D] foreign branch.

Answer: Option [B]

16. Under branch accounts debtors system, the depreciation of an asset is _______.

• [A] show in debtors account.
• [B] shown in debit side of branch account.
• [C] not shown in branch account .
• [D] shown in credit side of branch account.

Answer: Option [C]

17. Under branch accounts debtors system, closing balance of assets are recorded in ________.

• [A] credit side.
• [B] debit side.
• [C] first credit and debit side.
• [D] first debit and credit side.

Answer: Option [A]

18. Under branch accounts debtors system, closing balance of liabilities are recorded in _________.

• [A] first credit and debit side.
• [B] first debit and credit side.
• [C] credit side.
• [D] debit side.

Answer: Option [D]

19. Under branch accounts debtors system, loading on goods sent to branch adjusted in ________.

• [A] debit side.
• [B] credit side.
• [C] asset side .
• [D] liabilities side.

Answer: Option [B]

20. The difference between goods sent by head office and received by the branch is known as

• [A] goods in transit.
• [B] goods in godown.
• [C] goods in production.
• [D] none of the above.

Answer: Option [A]

21. All personal, real and nominal accounts are opened in ________.

• [A] single entry system.
• [B] double entry system.
• [C] accrual system.
• [D] none of the above.

Answer: Option [B]

22. Which of the following is the accounting equation for a non-profit organization?

• [A] Asset = Capital + Liabilities.
• [B] Capital + Liabilities = Assets.
• [C] Accumulated fund + Liabilities = Assets.
• [D] Liabilities = Asset + Accumulated fund.

Answer: Option [C]

23. Difference between net worth at the beginning of the year and at the end of the year represents

• [A] capital balance.
• [B] cash balance.
• [C] pass book balance.
• [D] profit or loss.

Answer: Option [D]

24. A statement of affairs is just like a _________.

• [A] balance sheet.
• [B] profit and loss account.
• [C] cash account.
• [D] none of the above.

Answer: Option [A]