MCQs of Financial Accounting for BBA Sem-I

Q. 1 Find out the amount of capital, Assets Rs. 20,000, Liabilities rs. 5,400. *

•  Rs. 4,200
•  Rs. 14,600
•  Rs. 5,600
•  Rs. 12,600

Q. 2 Which of the following is the intangible asset? *

•  Land
•  Patents
•  Investments
•  Cash

Q. 3 The person who supplies goods to the business is__________of the business. *

•  Debtor
•  Creditor
•  Customer
•  Partner

Q. 4 Capital = Assets-______? *

•  Loss
•  Liabilities
•  Profit
•  Cost

Q. 5 The accounting equation is satisfied by ________ *

•  Capital-Assets+Liabilities
•  Liabilities=Capital+Assets
•  Capital=Net Assets
•  None of the Above

Q. 6 The rule of debit "Debit what comes in and credit what goes out" is applicable to: *

•  Real Accounts
•  Nominal Accounts
•  Personal Accounts
•  None of the Above

Q. 7 Which of the following is a personal account? *

•  Creditors Account
•  Rent Account
•  Cash Account
•  Motor Car Account

Q.8 Fixed Asset is............ *

•  Stock
•  Land
•  Creditors
•  Debitors

Q. 9 Which of the following is not one of the examples of capital expenditure? *

•  Money spent to maintain the present efficiency level of a fixed asset.
•  Money spent on purchasing fixed assets.
•  Amount Spent on addition to existing fixed assets.
•  None of the above

Q. 10 Which of the following expenses is "Deferred Revenue Expenditure" ? *

•  Expenditure for installation of Machinery
•  Expenses of shifting of business from one place to another.
•  Amount Spent on addition to existing fixed assets.
•  Payment to salaries

Q. 11 Which of the following expenses is a revenue expense? *

•  Expense to make addition to an existing fixed asset.
•  Expense to maintain the present efficiency level of fixed asset.
•  Expense to purchase a new fixed asset.
•  Expense to repair an old machine to put it into a working condition.

Q.12 The credit balance of income and expenditure account means........ *

•  Excess of expenditure over income
•  Increase in cash balance
•  Excess of income over expenditure
•  Decrease in capital fund

Q. 13 Subscription received during the year Rs. 40,000. Received in advance during the year Rs. 1200. Subscription yet not received for the current year Rs. 1800.Last year's outstanding subscription Rs. 2000 received in the current years. How much amount of subscription will be shown to the credit side of income and expenditure account during the year? *

•  Rs. 38,000
•  Rs. 38,400
•  Rs. 38,600
•  Rs. 40,000

Q. 14 The subscription received in advance during the accounting year will be treated as........ *

•  an asset
•  an income
•  a liability
•  a contingent liability

Q. 15 Owner's drawing will be deducted from : *

•  sales
•  Closing stock
•  Capital
•  Net Profit

Q. 16 All the Revenue Expenditures and Revenue Income are transferred to: *

•  Balance Sheet
•  Profit and Loss Account
•  Trading Account
•  Either to (B) or (C)

Q. 17 Loss on sale of old furniture is debited : *

•  Profit and Loss Account
•  Furniture Account
•  Trading Account
•  Depreciation Account

Q. 18 "B's Trial Balance contain the following information : Discount Received Rs. 4000. Provision for discount on creditors Rs. 5,500. Creditors Rs. 80,000. It is desired to maintain a provision for on discount on creditors as 5%. The amount to be credited to the Profit and Loss Account is : *

•  Rs. 4,000
•  Rs. 3,500
•  Rs. 3,000
•  Rs. 2,500

Q.19 Purchase Account, Rent Received Account and Capital Account will normally show........ *

•  Debit, Credit , Debit balances respectively.
•  Debit, Debit , credit balances respectively.
•  Debit, credit , credit balances respectively.
•  Credit, Credit , Debit balances respectively.

Q.20 A trial balance helps in checking.......... *

•  Vouching
•  Totalling
•  Arithmetical accuracy of the books of accounts.
•  Truthness of the transaction.

Q.21 The total of sales book are....... to sales Account. *

•  Credited
•  Debited
•  Transferred
•  Dedected

Q.22 Goods withdrawn by the proprietor for his personal use will be: *

•  Credited to Trading Account.
•  Deducted from the sales
•  Treated as sales at cost price.
•  Added to the proprietor's Capital

Q.23 Goods destroyed by fire should be credited to: *

•  Sales Account
•  Insurance claim Account
•  Trading Account
•  Loss due to fire Account

Q. 24 Interest on drawing is : *

•  Business Income
•  Business Expenses
•  Owners Income
•  An increase in the capital

Q.25 Select the odd one account: *

•  Sales account
•  Bank overdraft account
•  Purchase return account
•  Goods burnt by fire account.

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