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This set of Financial Accounting 2 Multiple Choice Questions & Answers (MCQs) focuses on Financial Accounting 2 Set 3
Q1 | Profit and loss is calculated at the stage of
- recording
- posting
- classifying
- summarising
Q2 | Which of the following is not the main objective of accounting?
- systematic recording of transactions
- ascertaining profit or loss
- ascertainment of financial position
- solving tax disputes with tax authorities
Q3 | The rule debit all expenses and losses and credit all income and gains relates to
- personal account
- real account
- nominal accounts
- all
Q4 | Matching concept means
- assets = capital + liabilities
- transactions recorded at accrual concept
- anticipate no profit but recognize all losses
- expenses should be matched with the revenue of the period. branch accounts
Q5 | When Branch pays expenses for H.O. the following account is debited in the books of thebranch _______
- expenses is debited
- h.o. a/c is debited
- branch is debited
- none
Q6 | Under the stock and debtor system, Branch A/c is treated as ______
- joint a/c
- nominal a/c
- personal a/c
- real a/c
Q7 | Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 atinvoice price, Rs ______ will be credited to stock reserve a/c.
- rs 10000
- rs 12000
- rs 6000
- rs 12600
Q8 | HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profiton cost comes to ______
- 15%
- 25%
- 33.33%
- 20%
Q9 | HO sends goods to branch at invoice price after adding 25% on cost price, so profit wouldbe ___ % of invoice price
- 33.33%
- 40%
- 20%
- 25%
Q10 | For finding the amount of sundry expenses paid by the branch, the following a/c should beprepared.
- computer a/c
- creditors
- petty cash a/c
- debtors
Q11 | If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the pettycash received from HO is Rs 700, then what will be the amount of sundry expenses _____
- rs 1200
- rs 800
- rs 700
- rs 500
Q12 | H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch duringthe year will be ______
- rs 5000
- rs 6400
- rs 4600
- rs 6000
Q13 | Which of the following branches, taking into consideration the scope of authority andresponsibility, prepares its own independent final accounts?
- independent branch
- foreign branch
- dependent branch
- independent and foreign branch both
Q14 | Opening balance of debtors a/c is Rs 1,40,000. Credit sales is Rs 10,74,000 and closingbalance of Debtors a/c is Rs 1,90,000. What is the amount of cash collection from the debtors?
- rs 10,24,000
- rs 8,84,000
- rs 11, 52,000
- rs 8,42,000
Q15 | Goods in transit are shown in the balance sheet at ______
- head office
- branch
- both
- none of above
Q16 | H.O. has sent goods on invoice price worth Rs 2,40,000 which are 25% above cost price.What is the loading element?
- rs 60000
- rs 240000
- rs 48000
- rs 160000
Q17 | The adjusting entry for difference between the invoice price and cost price of goods areshown in ________
- balance sheet
- p & l a/c
- branch adjustment a/c
- none of above
Q18 | Stock and debtors system is generally used when goods are sent to the branch at _____
- cost price
- invoice price
- both
- none
Q19 | H.O. sent goods to branch at invoice price 50% plus on original price. How manypercentage of profit will be on Invoice price?
- 20%
- 25%
- 33.33%
- 16.67%
Q20 | Goods sent by HO but not received by branch before the end of the year, by debiting it togoods in transit, which account should be credited?
- cash a/c
- h.o. a/c
- trading a/c
- branch a/c
Q21 | If the opening balance of debtors is Rs 16,000 and closing balance is Rs 80,000, cash received from debtors is Rs 35,000 and bad debts is Rs 1,000, then what will be the amount ofcredit sales?
- rs 95000
- rs 105000
- rs 100000
- rs 110000
Q22 | The system of keeping accounts generally adopted by small size branches are:
- debtors system
- stock & debtors system
- wholesale branch system
- final account system
Q23 | Goods are supplied by the head office to dependent branches are at:
- cost price
- invoice price
- market price
- cost or invoice price
Q24 | Under debtors system which account is prepared by head office to calculate profit or lossof each branch:
- capital account
- debtors account
- branch account
- branch adjustment account
Q25 | Under debtors system depreciation on fixed asset is ________
- credited to branch a/c
- debited to branch a/c
- not shown in branch a/c
- shown in debtors a/c