MCQs on Financial Accounting - 12

1. The amount brought in by the proprietor in the business shall be credited to

(a) Cash account 
(b) Capital account
(c) Drawings account 
(d) None of these

2. The return of goods by a customer should be debited to

(a) Customer account 
(b) Return inward account
(c) Returns outward account 
(d) Goods account

3. The amount of salary paid to Madhu should be debited to

(a) Madhu 
(b) Cash account
(c) Salary account 
(d) None of these

4. The rent paid to the landlord should be credited to

(a) Rent account 
(b) Landlord account
(c) Cash account 
(d) None of these

5. The cash discount allowed to a debtor should be credited to

(a) Debtor account 
(b) Discount account
(c) Cash account 
(d) None of these

6. In case of a debt becoming bad, the amount should be credited to

(a) Bad debt account 
(b) Sales account
(c) debtors account 
(d) Provision for bad debt account.

7. Payment of LIC premium of the proprietor is debited to

(a) Capital account 
(b) Drawings account
(c) LIC premium account 
(d) None of these

8. Classification of accounts is made in

(a) Journal 
(b) Ledger
(c) Subsidiary book 
(d) Balance Sheet.

9. ------------- is prepared to find the financial position of business

(a) Trial balance 
(b) trading account
(c) P/L account 
(d) Balance Sheet

10. An expenditure is a capital expenditure because

(a) The amount is large
(b) It is intended to benefit the current period
(c) it is intended to benefit the future period
(d) All of these.

More MCQs on Financial Accounting


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