MCQ FINANCIAL ACCOUNTING PART 4

MULTIPLE CHOICE QUESTION FOR CMA INTERMEDIATE GROUP FIRST (MCQ – FINANCIAL ACCOUNTING PART 4)

  • A transaction without immediate cash settlement is known as
    • Cash Transaction;
    • Credit Transaction;
    • Deferred Transaction;
    • None of the above.
  • _____________________liabilities represent proprietor’s equity, i.e. all those amount which are entitled to the proprietor
    • External;
    • Debenture;
    • Internal;
    • None of the above.
  • Goods are transferred from Department X to Department Y at a price so as  to include a profit of 33.33% on cost. If the value of closing stock of Department Y is $ 48,000, then the amount of stock reserve on closing stock will be
    • (a) $12,000
    • (b) $9,000
    • (c) $18,000
    • (d) None of the above
  • Bad debts Recovered $1,000. It will be
    • Credited to Bad debts A/c
    • Credited to debtor’s personal A/c
    • Debited to creditor’s personal A/c
    • Credited to bad debts recovered A/c
  • Which of the following purpose is served from the preparation of Trial Balance?
    • To check the arithmetical accuracy of the recorded transactions;
    • To ascertain the balance of any ledger account;
    • To facilitate the preparation of final accounts promptly;
    • All of the above.
  •  ________________ contains the transactions relating to goods that are returned by us to our creditors
    • Return Inward;
    • Return Outward;
    • Sales Day book;
    • None of the above.
  • The  basic principles of __________concept is that business is assumed to exist for an indefinite period
    • Going Concern;
    • Business Entity;
    • Money Measurement;
    • None of the above.
  • Capital Profit arises from which of the following?
    • Profit prior to incorporation;
    • Premium received on issue of shares;
    • Profit made on re-issue of forfeited shares;
    • All of the above.
  • Which of the following cannot be detected by Trial Balance?
    • Errors of Omission;
    • Errors of Principal;
    • Errors of Misposting;
    • All of the above.
  • The concept that business is assumed to exist for an indefinite period and is not established with the objective of closing down is referred to as
    • Money Measurement concept
    • Going Concern concept
    • Full Disclosure concept
    • Dual Aspect concept
  • In the hire purchase system interest charged by vendor is calculated on the basis of
    • Outstanding cash Price
    • Hire purchase Price
    • Installment amount
    • None of the above
  • Goods are transferred from Department A to Department B at a price so as to include a profit of 33.33% on cost. If the value of closing stock of Department Y is $36,000, then the amount of stock reserve on closing stock will be
    • (a) $12,000
    • (b) $9,000
    • (c) $18,000
    • (d) None of the above
  • Bad debts Recovered `750. It will be
    • Credited to Bad debts A/c
    • Credited to debtor‘s personal A/c
    • Debited to creditor‘s personal A/c
    • Credited to bad debts recovered A/c
  • Which of the following is a function of journal:
    • Analytical Function
    • Recording Function
    • Historical Function
    • All of the above
  • The out flow of funds to acquire an asset that will benefit the business for more than one accounting period is referred to as —
    • Miscellaneous Expenditure
    • Revenue Expenditure
    • Capital expenditure
    • Deferred Revenue Expenditure

YOU CAN FIND MCQ FINANCIAL ACCOUNTING TEST SERIES ON CMAINDIAGROUP.COM – COMING SOON
FOR PREVIOUS MCQ FINANCIAL ACCOUNTING PART 4
https://cmaindiagroup.com/mcq-financial-accounting/
https://cmaindiagroup.com/mcq-financial-accounting-part-3/
https://cmaindiagroup.com/mcq-financial-accounting-2/

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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