Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Financial Accounting - 17

1. The capital of the proprietor increases when the business makes....................

(a) revenue 
(b) income
(c) loss 
(d) profit



2. The balance sheet is .............................. and not ..............................

(a) statement and account 
(b) account and statement
(c) document and account 
(d) none of these



3. All expenses incurred by the proprietor which are not related to business are treated as ..............................

(a) withdrawal 
(b) drawings
(c) remittances 
(d) none of these



4. Excess of debit over credit in the profit and loss account represents a ...........

(a) N/P 
(b) N/L
(c) gross profit 
(d) gross loss



5. Properties and possessions of a business are termed as ....................... 

(a) assets 
(b) liabilities
(c) profit 
(d) loss



6. Carriage inward is transferred to the .........................account whereas carriage outward is transferred to .........................account

(a) trading and P/L account
(b) P/L account and trading account
(c) carriage account and P/L
(d) none of these



7. An expense payable account will show a ......................... balance and will be shown on the .......................side of the balance sheet.

(a) credit and liability 
(b) debit and assets
(c) credit and assets 
(d) none of these



8. Prepaid expenses appearing in trial balance will appear in ..................

(a) trading a/c 
(b) profit and loss a/c
(c) balance sheet 
(d) prepaid exp. a/c


9. A gross profit is transferred to the .......................side of the P/L A/c.

(a) debit 
(b) credit 
(c) cost
(d) none of these



10 . If the opening and closing stock is Rs. 20,000 each, purchases are Rs.50,000, manufacturing expenses are Rs. 10,000 and sales Rs. 90,000,the gross profit will be ..............................

(a) 10,000 
(b) 20,000
(c) 30,000 
(d) 40,000




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