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This set of Financial Accounting 2 Multiple Choice Questions & Answers (MCQs) focuses on Financial Accounting 2 Set 2
Q1 | M/s Stationery Mart will debit the purchase of stationery to _______
- purchases a/c
- general expenses a/c
- stationery a/c
- none
Q2 | Small items like, pencils, pens, files, etc. are written off within a year according to ___concept.
- materiality
- consistency
- conservatism
- realisation
Q3 | Business enterprise is separate from its owner according to _____ concept.
- money measurement concept
- matching concept
- entity concept
- dual aspect concept
Q4 | The policy of anticipate no profit and provide for all possible losses arise due to the conceptof _____
- consistency
- disclosure
- conservatism
- matching
Q5 | According to which concept, the proprietor pays interest on drawings
- accrual concept
- conservatism concept
- entity concept
- dual aspect concept
Q6 | Cost concept basically recognises ____
- fair market value
- historical cost
- realisable value
- replacement cost
Q7 | If the Market value of closing Inventory is less than its cost price, inventory will he shownat ____
- marketable value
- fair market value
- both
- none
Q8 | The Market price of good declined than the cost price. Then the concept that plays a keyrole is ____
- materiality
- going concern concept
- realization
- consistency
Q9 | Fixed assets are double the current assets and half the capital. The current assets are Rs.3,00,000 and investments are Rs.4,00,000. Then the current liabilities recorded in balancesheet will be
- 2,00,000
- 1,00,000
- 3,00,000
- 4,00,000
Q10 | Which of the following provide frame work and accounting policies so that the financialstatements of different enterprises become comparable.
- business standards
- accounting standards
- market standards
- none
Q11 | Which of the following factor is not considered while selecting accounting policies?
- prudence
- substance over form
- accountancy
- materiality
Q12 | Debit the receiver & credit the giver is _____ account
- personal
- real
- nominal
- all the above
Q13 | Cash a/c is a ______
- real a/c
- nominal
- personal
- none
Q14 | As per accrual concept, which of the followings is not true
- revenue – expenditure = profit
- revenue – profit = expenditure
- sales + gross profit = revenue
- revenue = profit + expenditure
Q15 | Mr. X sold goods to Mr. Y ask Mr. X to keep the goods with him for some time
- symbolic delivery
- actual delivery
- constructive delivery
- none of these
Q16 | If nothing is written about the accounting assumption to be followed it is presumed that
- they have been followed
- they have not been followed
- they are followed to some extent
- none of these
Q17 | Capital A/c is a _______ A/c.
- personal
- real
- nominal
- none
Q18 | Cash A/c is a ________ A/c.
- personal
- real
- nominal
- none
Q19 | The principle “Debit the receiver and credit the giver” is related to_____
- personal a/c
- real a/c
- nominal a/c
- none
Q20 | Which of the following is a Real A/c?
- building a/c
- capital a/c
- shyam a/c
- rent a/c
Q21 | Valuation of stock in accounting follows the principle of cost price or ____ whichever islower.
- market price
- average price
- net realizable value
- none of these.
Q22 | Which of the following is not a nominal Account?
- outstanding salaries account
- salaries account
- interest paid
- commission received
Q23 | For every debit there will be an equal credit according to
- matching concept
- cost concept
- money measurement concept
- dual aspect concept
Q24 | Historical cost concept requires the valuation of an asset at
- original cost
- replacement value
- net realizable value
- market value
Q25 | The comparison of financial statement of one year with that of another is possible onlywhen _______ concept is followed
- going concern
- accrual
- consistency
- materiality