Financial accounting MCQ with answers: On our website, we are continuously providing accounting MCQs. In this post, another set of MCQs is provided with answers. These Accounting MCQs are collected from various previous years’ question papers.
Top Financial accounting MCQ with answers
 Cash account is a
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of the above.
 The next step after preparation of Ledger is the preparation of __ :
(a) trial balance
(b) final accounts
(c) cash flow statement
(d) balance sheet
 Purchase Return Account always shows a ______ balance.
(c) either (a) or (b)
 Opened an account with ~ 5,000 on 3/12109. He deposited ~ 1,000 on 7/12109. He withdraw ~2,000 on 15/12109 and deposited a cheque of ~ 10,000 on 20/12109. What is the balance on 31/12109?
(a) ~ 18,000
(b) ~ 14,000
(c) ~ 4,000
 Which of the following is known as “Principal Books of Accounts”?
(c) Trial Balance
 What will be the total sales of the year 2008-09 for A Limited, if they provided following information: Cash saJes ~ 80,000 Cash collected from debtors ~ 1,50,000 Bad debts during the year ~ 10,000 Debtor at 1 st April, 2008 ~ 15,000 Debtor at 31st March, 2009 ~ 10,000
(a) ~ 2,35,000
b) ~ 2,30,000
(c) ~ 2,40,000
(d) ~ 2,25,000
 The value of furniture on 1 st April, 2008 is ~ 80,000. Furniture purchased during the year was ~ 40,000. During the year some furniture was sold at ~ 15,000 and a loss of ~ 5,000 occurred. The value of furniture on 31 st March, 2009 was ~ 70,000. Depreciation charged for the year 2008-09 will be:
(a) ~ 50,000
(b) ~ 20,000
(c) ~ 30,000
(d) ~ 40,000
 Credit balance of ledger is
(a) a revenue or an asset
(b) a revenue or a liability
(c) an expense or an asset
(d) an expense or a liability.
 Which of the following statement is correct?
(a) All Entries except cash transactions can be recorded through Journal.
(b) Ledger is a part of subsidiary book ..
(c) Purchase book records all the purchases whether cash or credit.
(d) Bank column of cash book always has debit balance.
 If the owner withdraws the amount from the business for personal use, then which Nc is to be debited?
(a) Capital Nc
(b) Drawings Nc
(c) Owners Nc ‘
(d) None of these.
 Which of the following is a real account?
(a) Building Nc
(b) Capital Nc
(c) Rent Nc
(d) All of these.
 What will be the Journal Entry when goods purchased are returned?
(a) Creditors Nc Dr. To Purchase Return Nc
(b) Purchase Return Nc Dr. To Creditors Nc
(c) Creditors Nc Dr. To SalesNc
(d) None of these.
 After recording the transactions and’ events in journal and subsidiary books, they will be transferred to:
(a) Profit and Loss Account
(b) Balance Sheet
(d) Memorandum Books
 From the following details, find out credit sales during the financial year 2010 – 2011:
1 . Opening balance of sundry debtors on 1.4.10~ 12,000.
2. Bills receivable accepted by customer ~ 13,000.
3. Closing balance of Sundry Debtors on 31.3.11 ~ 14,000.
4. Cash received from debtors during the year ~ 38,400.
(a) ~ 39,400
(b) ~ 27,000
(c) ~ 65,400
(d) ~ 53,400
 From the following ‘information ascertain the closing balance of debtors: Opening balance of debtors ~ 32,600; total sales ~ 1,03,000; cash collected from debtors ~ 70,000; sales return ~ 1,500; discount on purchases ~ 1, 200; cash sales ~ 43,000; bad debts ~ 700:
(a) ~ 19,200
(b) ~ 20,400
(c) ~ 63,400
(d) ~ 21 ,900
 Furniture of book value of ~ 20,000 was sold for ~ 6,000 and new furniture of ~ 20,000 was purchased. Amount debited towards purchase of new furniture will be:
(a) ~ 14,000
(b) ~ 29,000
(c) ~ 5,000
(d) ~ 20,000
 Goods costing ~ 5,000 given to a worker towards wages ~ 5,000. Market price of goods is ~ 6,000. Journal entry will be
(a) Wages Ale Dr. ~ 6,000 To Sales Ale ~ 6,000 .
(b) Wages Ale Dr. ~ 5,000 . To Purchases Ale ~ 5,000
(c) Wages Ale Dr. ~5,000 To Cash Ale ~ 5,000
(d) None of the above
 X purchased goods on 90 days credit from Y worth ~ 20,000. Y has given a trade discount of ~ 1,000 on the same. Since Y also offered a cash discount of ~ 500, if payment is made within 30 days, X avails the cash discount and paid the dues to Y. At the end of the year the goods purchases from Y remain unsold and included in the stock. The value of such goods would be:
(a) ~ 20,000
(b) ~ 19,500
(c) ~ 19,000
(d) ~ 18,500
 ‘A’ purchased a computer having MRP of ~ 60,000 for ~ 45,000 and was offered a cash discount of ~ 9,000. At what percentage he got trade discount on MRP before getting cash discount?
 At the end of the accounting year all the nominal accounts of the ledger book are:
(a) Balanced but not transferred to profit and loss account
(b) Not balanced and also the balance is not transferred to the profit and loss account
(c) Balanced and the balance is transferred to the balance sheet
(d) Not balanced and their balance is transferred to the profit and loss account.
 Salary payable to employees ~ 50,000 is credited to ________ _
(a) cash alc
(b) salary alc
(c) outstanding salary alc
(d) none of the above.
 Opening debtor ~ 15,000 Bad debts during the year ~ 14,000 Cash received from debtors ~1 ,60,000 Closing debtors ~ 7,000 Total Sales will be:
(a) ~ 1,81,000
(b) ~ 1,66,000
(c) ~ 1,74,000
(d) ~ 1,60,000
 Journal and ledger records transactions in:
(a) A chronological order only.
(b) An analytical order and chronological order respectively.
(c) A chronological order and analytical order respectively.
(d) An analytical order only.
 Which of the following statement is incorrect?
(a) All personal and real account ultimately show balances
(b) The balances of nominal accounts are transferred tc . profit and loss account
(c) Separate account is opened in ledger books for each account
(d) Rent is a personal account but outstanding rent is a nominal account.
 At the end of the year, a ledger account has credit balance. The credit balance of the ledger is written as:
(a) “To Balance c/d” on the debit side
(b) “By Balance c/d” on the credit side
(c) “To Balance bid” on the debit side
(d) “By Balance bid” on the credit side.
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Dr. Sunny is an Assistant Professor in higher education. He has completed his Ph.D. He has a depth of knowledge in the research field and in higher education.