MCQ FINANCIAL ACCOUNTING PART 3

MULTIPLE CHOICE QUESTION FOR CMA INTERMEDIATE GROUP FIRST (MCQ – FINANCIAL ACCOUNTING PART 3)

  • Which of the following is an example of Capital Expenditure?
    • Inventory of raw materials, work-in-progress and finished goods;
    • Insurance premium;
    • Taxes and legal expenses;
    • None of the above.
  • Which of the following errors is not disclosed by a Trial Balance?
    • Errors of Omission
    • Errors of Commission
    • Compensating Errors
    • All of the above
  •   ________________  is specially suited to mines, oil wells, quarries, sandpits and similar assets of a wasting character.
    • Depletion
    • Depreciation
    • Amortisation
    • Dilapidation
  • The following account has a credit balance
    • Plant and Equipment A/c
    • Loans A/c
    • Purchase A/c
    • None of the above
  • From the following details estimate the capital as on 31.03.2017. Capital as on 01.04.2016 – $4,10,000. Drawings $40,000, Profit during the year $50,000
    • (a) $4,10,000
    • (b) $4,50,000
    • (c) $4,20,000
    • (d) $4,00,000
  • A and B purchased a piece of land for $30,000 and sold it for $60,000 in 2016.Originally A had contributed $12,000 and B $8,000. The profit on venture will be
    • (a) $30,000
    • (b) $20,000
    • (c) $60,000
    • (d) Nil
  • AB Ltd. has signed at 31st December, 2017 the Balance Sheet date, a contract where the Total Revenue is estimated at ` 15 Crores and Total Cost is estimated at ` 20 Crores. No work began on the contract. Is the Contractor required to give any accounting effect for the year ended 31st December, 2017?
    • Recognize expected loss of `5 Crores
    • Recognize `15 Crores as Profit
    • No entry
    • None of the above
  • Which of the following item does not match with receipts and payments account?
    • It is a summarized cash book
    • Transactions are recorded in it on cash basis
    • It records revenue transactions only
    • It serves the purpose of a real account
  • Which of the following is/ are the basic features of a Joint Venture
    • The profit or loss on joint venture is shared between the co-venturers in the agreed ratio
    • The co-venturers may or may not contribute initial capital
    • The JV is dissolved once the purpose of the business is over
    • All of the above
  • Excess of hire purchase price over cash price is known as
    • Installment
    • Cash down payment
    • Interest
    • Capital value of asset
  • Which of the following is/are revenue expenditure?
    • Consumable Stores
    • Taxes and legal expenses
    • Rent of factory building
    • All of Above
  • AS-9 is related to
    • Revenue Recognition
    • Cash Flow Statement
    • Accounting for Fixed Assets
    • Disclosure of Accounting policies
  • The person to whom bill is endorsed is known as _                .
    • Endorsee
    • Drawee
    • Drawer
    • None of the above
  • Which of the following is/are feature/features of Income and Expenditure Account?
    • It follows Nominal Account
    • All Capital incomes and expenditures are excluded
    • Profit on sale of asset is credited
    • All of the above
  • The debts which are not bad is known as
    • Good debt
    • Bad Debt
    • Doubtful Debt
    • None of the above

YOU CAN FIND MCQ FINANCIAL ACCOUNTING TEST SERIES ON CMAINDIAGROUP.COM – COMING SOON
FOR PREVIOUS MCQ FINANCIAL ACCOUNTING PART 2 https://cmaindiagroup.com/mcq-financial-accounting-2/
https://cmaindiagroup.com/mcq-financial-accounting/

For CMA Inter Study Notes Pls Click on Following Link.
https://pnautiyal.blogspot.com/2020/04/cma-inter-study-notes_18.html

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