Financial
Accounting Multiple Choice Questions (MCQS) Page 4. The Following Financial
Accounting Mcqs are Collected from different Past papers and from Accounting
Mcqs Bank. These Mcqs are very helpful for the Preparation of
various posts of Senior Auditor, Junior Auditor, Accountant and for
Cost Accountant.
1) |
The Basic accounting
equation is
|
A) Asset=Expense
+Income
|
B) Assets=Cash+Capital
|
C) Assets=Capital+Liabilities
|
D) Assets=Expenses+Capital
|
2)
|
Find out the value
of assets if: Liabilities=$5000 and Capital=$1000
|
A) $4000
|
B) $6000
|
C) $7000
|
D) $3000
|
3)
|
Calculate the
amount of cash if: Total assets=$10,000 Total liabilities=$10,000 Total
Capital=$5000
|
A) $6000
|
B) $10,000
|
C) $5000
|
D) $1000
|
4)
|
Capital increases if
______ increases
|
A) Expenses
|
B) Drawings
|
C) Interest on
capital
|
D) Revenue
|
5)
|
Capital of a
business decreases if there is an increase in
|
A) Drawings
|
B) Income
|
C) Gains
|
D) Fresh
capital
|
6)
|
If the total
liabilities of a business decrease by $5000 what will be the
effect on total asset?
|
(assuming the amount of capital remain
same)
|
A) Remain
constant
|
B) Decrease by
$5000
|
C) Increase by
$5000
|
D) Increase by
$10,000
|
7)
|
If the business's
owner withdraws cash for his/her personal use what will be the effect on
capital?
|
A) Increase in
capital
|
B) Remain the
same
|
C) Decrease in
capital
|
D) No effect
on capital
|
8)
|
Net income equal to
Revenues minus
|
A) Gains
|
B) Depreciation
|
C) Expenses
|
D) Capital
expenditures
|
9)
|
Collection of
account receivable will
|
A) Increase
assets and decrease assets
|
B) Increase
assets and decrease liabilities
|
C) Increase
assets and increase capital
|
D) Increase
assets and increase cash
|
10)
|
Payment of expenses
will ______ the assets
|
A) Increase
|
B) Reduce
|
C) apportion
|
D) Overstate
|
11)
|
Which of the
following is the practical implementation of the
accounting equation?
|
A) Cash flow
statement
|
B) Income
statement
|
C) Statement
of changes in equity
|
D) Statement
of financial position
|
12)
|
Which of the
following accounting equation is correct?
|
A) Cash+Other
assets=Capital-Liabilities
|
B) Capital+
Liabilities=Assets+Income
|
C) Assets-Liabilities=Capital
|
D) Assets+Capital=Liabilities
|
13)
|
Fresh capital
introduction will increase
|
A) Assets and
liabilities
|
B) Assets and
equity
|
C) Liabilities
and equity and bank balance
|
D) Capital and
liabilities
|
14)
|
Cash received for
services rendered will
|
A) Increase
cash and liability
|
B) Increase
equity and liability
|
C) Increase
fixed assets and cash
|
D) Increase
cash and equity
|
15)
|
Which of following
best describes the increase in equity expands_______
|
A) Business
operations
|
B) cash
outflows
|
C) Inflows of
cash
|
D) Appropriation
expenses
|
16)
|
If
Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=?
|
Capital+Liabilities=$15000
What is the Amount of total assets?
|
A) $5000
|
B) $10,000
|
C) $15,000
|
D) $20,000
|
17)
|
Depreciation
decreases
|
A) Liabilities
|
B) Cash
|
C) Bank
|
D) Capital
|
18)
|
An increase in
provision for bad debt will
|
A) Decrease
net income
|
B) Decrease
liabilities
|
C) Increase
net income
|
D) Increase
liabilities
|
19)
|
Current assets -
Current liabilities=?
|
A) Capital
|
B) Absorbed
capital
|
C) Net assets
|
D) Net working
capital
|
20)
|
Assets-Liabilities=?
|
A) Cash
|
B) Equity
|
C) Net income
|
D) Net
expenses
|
Answer:
|
1 c 2 b 3 c 4 d 5 a
6 b 7 c 8 c 9 a 10 b 11 d 12 c 13 b 14 d 15 a
|
16 a 17 d 18 a 19 d 20 b.
|
28 Oct 2014
Accounting Quize
17:04
No comments
0 comments:
Post a Comment