Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Financial Accounting - 13

1. Added in opening balance of capital is

(a) net profit
(b) drawings
(c) net loss
(d) operating expenses



2. From income statement we find out

(a) gross profit
(b) financial position of business
(c) net profit
(d) all of the above.



3. Which of the following is not an intangible asset

(a) stock
(b) goodwill,
(c) trade mark
(d) patents.



4. Which of the following is correct

(a) opening stock + Purchases + Closing stock = Cost of goods sold,
(b) Cost of goods sold - closing stock - purchase = opening stock
(c) Cost of goods sold + Closing stock - opening stock = purchase,
(d) opening stock + cost of goods sold - purchase = closing stock.



5. Which of the following is a fictitious asset

(a) goodwill
(b) copyright
(c) patents
(d) discount on issue of securities



6. Which transaction results in increase in assets and increase in liabilities

(a) goodwill written off
(b) issue of bonus shares in the ratio 2:1,
(c) credit purchase of machine,
(d) none of these.



7. Returns outward appearing in trial balance is to be deducted from

(a) sales, 
(b) purchases,
(c) returns outward, 
(d) closing stock.



8. Returns inward appearing in trial balance is to be deducted from

(a) purchases, 
(b) sales,
(c) returns outward, 
(d) closing stock.



9. Carriage outward is shown on the

(a) debit side of trading account,
(b) debit side of profit and loss account,
(c) credit side of profit and loss account,
(d) liability side of the balance sheet.



10. Opening stock was shown at Rs. 9000, which was three - fourth of its actual cost. What is the effect of this ?

(a) gross profit will increase by Rs. 3000,
(b) Gross profit will decrease by Rs. 3000,
(c) gross profit will be more by Rs. 9000,
(d) there will be no effect on gross profit.




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