Free Printable FINANCIAL ACCOUTING(COMET240101)

1.

Which error does not affect the trail balance ?

a)

Partial omission

b)

Error of compensation

c)

Posted to wrong side

d)

wrong Balancing

2.

If rent outstanding increases,its effects will be

a)

Profit Increases

b)

Profit Decreases

c)

No Effect

d)

Asset Increases

3.

Carriage outward is shown in

a)

Trading A/c

b)

Profit &loss A/c

c)

Balance Sheet

d)

Cash Book

4.

"Debit note" is issued by

a)

Seller to Buyer

b)

Buyer to Seller

c)

Bank to Customer

d)

Auditor to Client

5.

Depriciation is a method of

a)

Asset valuation

b)

Asset replacement

c)

Allocation to cost

d)

Profit distribution

6.

Cost of goods sold :

a)

Opening stock + Purchases - closing stock

b)

Sales- Gross profit

c)

Both A&B

d)

None of the above

7.

Credit purchase of furniture is recorded in ?

a)

Purchase Book

b)

Journal Proper

c)

Cash book

d)

Sales book

8.

Contra entry appears in the book only ?

a)

Petty cash book

b)

Two- coloumn Cash book

c)

Journal

d)

Ledger

9.

Which item is shown on debit sideof trail balance ?

a)

Outstanding salary

b)

Capital

c)

Drawings

d)

sales

10.

Bad debts written off as ?

a)

Assest

b)

Liability

c)

Expenses

d)

Income

11.

Goods lost by fire should be credited to ?

a)

Purchases

b)

Sales

c)

Trading A/c

d)

Fire loss A/c

12.

Prepaid expenses appears on ?

a)

Asset side

b)

Liability side

c)

Expenses side

d)

Income side

13.

Interest on drawing is ____ For the business ?

a)

Income

b)

Expenses

c)

Liability

d)

Asset

14.

Sales return is also called ?

a)

Return Outward

b)

Return inward

c)

Reverse purchase

d)

Reverse sales

15.

Which of the indicates Financial position ?

a)

Trading A/c

b)

Profit & loss A/c

c)

Balance sheet

d)

Cash book

16.

Error of principle affects :

a)

Trail balance only

b)

Ledger only

c)

Final accounts

d)

Bank reconcilation

17.

A cheque deposited but not yet cleared is :

a)

Added in cashbook

b)

Added in passbook

c)

Deducted in BRS

d)

No effect

18.

When goods are sold at a loss, cost price is :

a)

> selling price

b)

< Selling Price

c)

= Selling price

d)

Cannot determine

19.

Depriciation is provided because of :

a)

Market value increases

b)

Wear & tear

c)

Capital increase

d)

Business Expansion

20.

Which is a Fictitious asset ?

a)

Goodwill

b)

Prepaid rent

c)

Outstanding expenses

d)

Preliminary expenses

21.

Discount allowed is a :

a)

Liability

b)

Expense

c)

Income

d)

Asset

22.

Return inward reduces ;

a)

Purchases

b)

Sales

c)

Creditors

d)

Cash

23.

If the debit sum of trail balance is higher, it means:

a)

Loss

b)

Profit

c)

Debit > Credit

d)

Credit > Debit

24.

Work-in-progress is shown in :

a)

P&L A/c

b)

Trading A/c

c)

Balance Sheet

d)

Both B

& C

25.

Closing stock appears in :

a)

Only in Trading A/c

b)

B. Only in Balance Sheet

c)

C. Both A & B

d)

D. Only in P&L A/c

26.

Outstanding expenses are added to :

a)

Income

b)

Asset

c)

Expenses

d)

Capital

27.

Provision for doutbtful debts created for :

a)

Known losses

b)

Possible losses

c)

Contingent assest

d)

None

28.

Depriciation Reduces :

a)

Profit

b)

Capital

c)

Asset value

d)

All of these

29.

Income recived in advance is a :

a)

Revenue

b)

Expense

c)

Liability

d)

Asset

30.

If sales= 50,000 and Gross profit= 20%, COGS=

a)

40,000

b)

10,000

c)

20,000

d)

8,000

31.

Machinery Purchased on credit was wrongly posted to purchases book. This is:

a)

Error of omission

b)

Error of principle

c)

Compensating error

d)

Error of commision

32.

If cash is stolen , it is recorded as :

a)

Expenses

b)

Asset

c)

Liability

d)

Drawings

33.

33. A bill accepted by customeris recorded first in :

a)

A. Journal

b)

B. Cash book

c)

C. Bills Recivable book

d)

D. Bills Payable book

34.

34. When goods are sent on consignment, they are recorded as :

a)

A. Sales

b)

B. purchases

c)

C. Closing stock

d)

D. No entry

35.

35. Provision for discount on debtors is created on :

a)

A. Total debtors

b)

B. Good debtors

c)

C. Bad debts

d)

D. Discount Allowed

36.

36. A Credit balance in cash book means :

a)

A. Cash in hand

b)

B. Bank Overdraft

c)

C. Error

d)

D. Profit

37.

Which will make a diffrence in BRS ?

a)

Error in Passbook

b)

Error in cashbook

c)

Cheque not presented yet

d)

All of these

38.

Deferred revenue expenditure is shown under:

a)

Current asset

b)

Capital reciepts

c)

Fictious reciepts

d)

Long-term liabilities

39.

A ledger folio is :

a)

Page number

b)

Ledger balance

c)

Trail balance

d)

Credit note

40.

If purchase return is wrongly recorded as sales return:

a)

Profit overstated

b)

Profit understated

c)

No effect

d)

Asset increases

41.

Which is a credit balance item ?

a)

Wages

b)

Sales

c)

Drawings

d)

Purchases

42.

Interest on loan unpaid is :

a)

Asset

b)

Liability

c)

Income

d)

Expense Only

43.

If closing stock is undervalued, Profit will be :

a)

Overstated

b)

Understated

c)

Correct

d)

Zero

44.

A trail balance tallies but error exists. Reason ?

a)

Error of principle

b)

Double posting

c)

Wrong totality of subsidiary book

d)

All of these

45.

If purchase return is wrongly recorded as sales return:

a)

Error of omission

b)

Error of Commission

c)

Error of principle

d)

Error of original entry

46.

If closing stock is ₹10,000 undervalued by ₹2,000, the corrected profit will be

a)

Increase by ₹2,000

b)

Decrease by ₹2,000

c)

No change

d)

Increase by ₹4,000

47.

A cheque received from customer is recorded in cash book but not deposited in bank. In BRS, it will be:

a)

Added to passbook balance

b)

Deducted from passbook balance

c)

Added to cashbook balance

d)

Deducted from cashbook balance

48.

Goods worth ₹5,000 given as charity were wrongly recorded as sales. Effect on profit?

a)

Overstated

b)

Understated

c)

No effect

d)

Asset understated only

49.

Machinery purchased for ₹50,000 was debited to Purchases A/c. This is:

a)

Error of commision

b)

Error of omission

c)

Error of principle

d)

Compensating error

50.

If total debtors = ₹1,00,000; Bad debts = ₹10,000; Provision for doubtful debts = 5%. New provision amount =

a)

₹5,000

b)

₹4,500

c)

₹4,000

d)

₹3,000

FINANCIAL ACCOUTING(COMET240101)

Total questions: 50

Worksheet time: 17mins

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