Previous Year Solved Question Papers

Previous Year Solved Question Papers

MCQs on Financial Accounting - 23

1. An estimate of future bad debt is called..............................

(a) provision for doubtful debts 
(b) debtors
(c) uncollected debts 
(d) none of these



2. Expenses paid in advance is ...............................

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



3. Outstanding expense is..............................

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


4. A ......................balance in the suspense account will appear on the asset side of the balance sheet.

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



5. ..............................is an expenditure which is incurred to meet the day to day expenses of the business.

(a) capital expenditure
(b) revenue expenditure
(c) deferred revenue expenditure
(d) none of these


6. Gross profit is made when the sales proceeds exceed the .....................

(a) purchases 
(b) revenue
(c) cost of goods sold 
(d) none of these


7. ..............................wage incurred for the current period are shown as a liability in the balance sheet unless it is paid.

(a) accrued 
(b) outstanding
(c) nominal 
(d) current


8. A .............................. is a statement of affairs of a business, which reveals the financial position of a business as on a particular date.

(a) trial balance 
(b) balance sheet
(c) cash flow statement 
(d) none of these


9. Showing the assets and liabilities in the order of convertibility or solvency is called..............................

(a) marshalling 
(b) balancing
(c) carry forwarding 
(d) none of these



10. The assets whose existence or value is dependent on the happening or non-happening of a certain event which is not definite is known as..............................

(a) fixed assets 
(b) current assets
(c) tangible assets 
(d) contingent assets




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