Now a days, most of the Competitive Exams, Entrance Exams are conducted on MCQ. Click HERE to understand the Forms, Structure, Rules of MCQ, techniques of understanding, analysing and selection correct answer of MCQ,
Play the Video explaining some interesting aspects of selection of correct answer of MCQ.
For complete resources on Final Accounts Reports, visit https://dvidya.com/final-accounts-mcq/
1. In single entry system of accounting
A) Dual aspects of a transaction is recorded
B) Single aspect of a transaction is recorded
C) Important transactions are recorded
D) All of them
In single entry system of accounting, one aspect of a transaction is recorded. So, option (B) is correct.
2. Statement of financial position produced from incomplete accounting record is commonly known as
A) Balance sheet
B) Cash flow statement
C) Statement of affairs
D) Statement of financial operations
Statement of financial position produced from incomplete accounting record is commonly known as . So, option (C) is correct.
3. Which of the following businesses sometimes maintain incomplete accounting record of the business activities?
A) Large businesses
C) Partnership firms
D) Small Proprietorship businesses
Small Proprietorship businesses are sometimes likely to maintain incomplete accounting record of the business activities. So, option (D) is correct.
D) Budgetary Accounting System
Financial statements based on Double entry Accounting system reflect true and fair view of an entity. So, option (B) is correct.
5. In a Proprietorship Firm :
A) Opening capital + Net income – Drawing – Assets = Closing Capital
B) Closing capital = Opening Capital + Net loss – Drawings
C) Closing Capital = Opening capital + Assets + Incomes – Expenses
D) Closing capital = Opening capital + Net income – Drawings
So, option (D) is correct
6. If opening capital = Rs.1000 and closing capital = Rs.2000. Assuming no drawings during the accounting period, calculated the net income or loss for the period
A) Rs.1000 net income
B) Rs.1000 net loss
C) Rs.2000 net income
D) Rs.2000 net loss
Profit / Loss=Closing Capital (2000) – Opening Capital (1000) = 1000. So, option (A) is correct
7. Total opening balances of assets and liabilities are Rs.10,000 and Rs.5000 respectively. Find out the opening capital of the business:
Capital = Asset (10000) – Liabilities (5000) = 5000. So, option (B) is correct
8. Form single entry and incomplete records, which one of the following accounts may be derived from credit Sales made during the current accounting period?
A) Debtor account
B) Capital account
C) Creditors account
D) Expenses account
Debtors account may derived from the figures of Credit Sales made during the current accounting period? So, option (B) is correct.
9. If creditors balance was Rs.1000 at 1 Jan 2022, ending balance of creditors was Rs.2000 on 31 Dec 2022 and a Payment of Rs.500 was made to Creditors, which of the following is the amount of purchases made during the year 2022?
Purchases = Closing Balance of Creditor (2000) – Opening Balance of Creditor (1000) + Payment to Creditor (500) = 1500. Hence option (C) is correct.
10. If debtors balance was Rs.2000 at 1 Jan 2018, credit sales made during the year were Rs.1000 and the total payments of Rs.1500 were received from debtors, which of the following is the debtors account balance at 31 Dec 2018 ?
Closing Debtor Balance= Opening Debtor Balance (2000) + sales made (1000) – Payment received (1500) = 1500. So, option (C) is correct.
11. Net Profit + Operating expenses = ?
A) Cost of goods sold
B) Amount of Sales
C) Net Sales
D) Gross Profit
Gross profit = Net profit + operating expenses. So, option (D) is correct.
12. Calculate the amount of net income or loss if the capital has been increased by Rs.1000 during this accounting period, drawing = Rs.5000 and Rs.1000 fresh capital was introduced in the business.
A) Rs.5000 net loss
B) Rs.5000 net profit
C) Rs.6000 net loss
D) Rs.6000 net profit
Net Profit / Loss = (Closing Capital – Opening Capital) – Capital Introduced + Drawings
=1000-1000+5000=5000 Net Profit. So, option (B) is correct.