MCQ FINANCIAL ACCOUNTING

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

  • Which of the following is of capital nature?
    • Commission on purchases
    • Cost of repairs
    • Rent of factory
    • Wages paid for installation of machinery
  • Outward Invoice issued is a source document of
    • Purchase Book
    • Sales Book
    • Return Inward Book
    • Return Outward Book
  • A resource owned by the business with purpose of using it for generating future profit, is known as
    • Capital
    • Asset
    • Liability
    • Surplus
  • As on 31st March, 2017 debtors and additional bad debts are $ 8,00,000 and $ 10,000 respectively. If the provision for bad debts is made at 5% on debtors then amount of such provision will be
    (a) $40,000
    (b) $50,000
    (c) $39,500
    (d) $40,500
  • Income and Expenditure Account is a
    • Nominal Account
    • Real Account
    • Personal Account
    • Artificial Personal Account
  • Creditors ledger adjustment account is opened in
    • General Ledger
    • Debtors Ledger
    • Creditors Ledger
    • Either (b) or (c)
  • Receipts and Payments account is a
    • Nominal Account
    • Real Account
    • Personal Account
    • Artificial Personal Account
  • If an employee of the business files a legal suit on business, it is considered in the books as
    • Legal Expense
    • Liability
    • Contingent Asset
    • Contingent Liability
  • At the end of the accounting year the capital expenditures are shown in the
    • assets side of the Balance Sheet.
    • liabilities side of the Balance Sheet.
    • debit side of the Profit and Loss A/c.
    • credit side of the Profit and Loss A/c.
  • Which of the following is not a method of charging depreciation?
    • Sinking Fund Method
    • Sum of years Digit Method
    • Working hours Method
    • Asset’s Life-cycle Method
  • If average inventory is $1,25,000 and closing inventory is $10,000 less than opening inventory then the value of closing inventory will be
    (a) $1,35,000
    (b) $ 1,15,000
    (c) $ 1,30,000
    (d) $ 1,20,000
  • The Accommodation bill is drawn
    • to finance actual purchase or sale of goods.
    • to facilitate trade transmission.
    • when both parties are in need of funds.
    • None of the above
  • Balance of X’s account in creditors ledger is transferred to X’s account in debtors ledger, in this case
    • X’s account in debtors ledger will be debited.
    • X’s account in creditors ledger will be debited.
    • Suspense account will be debited.
    • None of the above
  • Ground rent or surface rent means
    • Minimum rent
    • Maximum royalty payable
    • Minimum royalty payable
    • Fixed rent payable in addition to minimum rent
  • Accounting standard in India are issued by
    • Government of India
    • Reserve Bank of India
    • The Institute of Chartered Accountants of India
    • The Institute of Accounting Standard of India

YOU CAN FIND MCQ FINANCIAL ACCOUNTING TEST SERIES ON CMAINDIAGROUP.COM – COMING SOON

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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