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Financial Accounting -CIA I

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

Receipts and Payments Account is

a)

Personal Account

b)

Real Account

c)

Nominal Account

d)

Gross and Net Profit

2.

Income and Expenditure Account records transactions of

a)

Revenue nature only

b)

Capital nature only

c)

Both Capital and Revenue

d)

Cash transactions only

3.

Subscription received in advance is

a)

An Income

b)

An Expense

c)

An Asset

d)

A liability

4.

Non trading institution prepare

a)

Profit and Loss account

b)

Manufacturing account

c)

Receipts and payments account

d)

Income and expenditure account

5.

Donations received for a special purpose will be taken to the

a)

Liability side of the balance sheet

b)

Asset side of the balance sheet

c)

Income and Expenditure account

d)

Receipts and payments account

6.

Legacies are generally

a)

Treated as income

b)

Capitalized and taken to balance sheet

c)

Treated as expenditure

d)

Treated as Revenue and payments

7.

Income and Expenditure Account is

a)

Personal Account

b)

Real Account

c)

Nominal Account

d)

Contingent Account

8.

------- is a major source of income for Non-profit organisation

a)

Subscription

b)

Admission fee

c)

Life members fee

d)

Donation

9.

Profit or loss made on sale of old assets is recorded in

a)

Income and Expenditure account

b)

Receipts and payments account

c)

Balance sheet

d)

Trading account

10.

A profit on sale of furniture of a club will be taken to

a)

Income and expenditure account

b)

Cash account

c)

Receipts and payments account

d)

Balance sheet

11.

Non -Departmental items of expenses are charged to

a)

Departments on the basis of sales

b)

General Profit and Loss account

c)

Departments based on fixed assets employed

d)

Capital fund

12.

Repairs to machinery is apportioned over the departments on the basis of

a)

Number of machines in each department

b)

Value of machine

c)

Floor area of each machine

d)

Rent rate of each machine

13.

Selling Expenses should be divided among the departments on the basis of

a)

Purchase

b)

Space occupied

c)

Sales

d)

No of employees

14.

Salary is an example of

a)

Direct expense

b)

Indirect expense

c)

Both direct and indirect expenses

d)

Capital expense

15.

Rent and rates paid are apportioned among the departments on the basis of

a)

Sales

b)

Space occupied

c)

Purchase

d)

Number of employees

16.

The balance in the 'goods sent to branch ' account is transferred to

a)

Branch account

b)

Head office account

c)

Profit and loss account

d)

Trading or purchase account

17.

In case of shortage,under stock and debtors system the profit element is debited to

a)

Branch stock a/c

b)

Branch Debtors a/c

c)

Branch expenses a/c

d)

Branch adjustments a/c

18.

The objective of branch accounting is to know

a)

Profit and loss

b)

Profit and loss of each department

c)

Profit and loss of head office

d)

Profit and loss of manufacturing companies

19.

The fixed asset account of a dependent branch is maintained by

a)

Branch

b)

Head office

c)

Both head and branch office

d)

Departmental store

20.

Under the debtors system in branch a/c ,credit sales are

a)

Debited to branch a/c

b)

Credited to branch a/c

c)

Debited to debtors a/c

d)

Credited to debtors a/c