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This set of Financial Accounting 2 Multiple Choice Questions & Answers (MCQs) focuses on Financial Accounting 2 Set 4
Q1 | Branch Trading &Profit & Loss A/c is only a _________ account not forming part of thefull accounting system.
- single
- memorandum
- capital
- double
Q2 | In final account system, Branch Trading and Profit & Loss A/c is prepared at ________
- invoice price
- cost price
- cost & invoice price
- market price
Q3 | Under Final A/c system, the profit or loss made by the branch is determined by preparing
- branch stock a/c
- branch debtors a/c
- branch adjustment a/c
- branch trading & profit &loss a/c
Q4 | The Branch Account prepared under Final Account System is the nature of:
- nominal account
- real account
- personal account
- general account
Q5 | Dependent branch makes:
- cash sales only
- credit sales only
- cash & credit sales
- instalment sales
Q6 | All branch expenses such as rent, salary are paid by H.O in case of:
- independent branch
- local branch
- dependent branch
- foreign branch
Q7 | Branch Trading & Profit & Loss A/c is prepared to incorporate all _____
- revenue items
- capital items
- asset items
- past items
Q8 | The difference between goods sent by H.O. and received by branch is known as _______
- goods in transit
- goods in warehouse
- goods in production
- goods in godown
Q9 | The stock reserve for unrealised profit will be ________ to the H.O profit & Loss A/C
- debited
- credited
- first credited then debited
- not shown
Q10 | ____________ account is prepared to adjust the loads included in the value of openingstock and closing stock.
- branch stock
- branch adjustment
- stock reserve
- branch p&l
Q11 | ____________ account shows the shortage or surplus of stock.
- branch adjustment
- branch stock
- goods sent to branch
- branch p&l
Q12 | The profit included in surplus or shortage of stock is transferred to ______ account
- branch stock
- branch expenses
- branch adjustment
- branch p&l
Q13 | The balance of branch adjustment account is transferred to _________ account
- branch stock
- branch p&l
- branch debtors
- branch expenses
Q14 | An ordinary partnership business can have:
- not more than 50 partners
- not more than 20 partners.
- any number of partners.
- any number than 2 partners.
Q15 | In the absence of an agreement profit and loss are divided by partners in the ratio of:
- capital
- equally
- time devoted by each partners
- none of these.
Q16 | In the absence of an agreement, Interest on loan advanced by the partner to the firm isallowed at the rate of:
- 6%
- 5%
- 12%
- 9%
Q17 | Current accounts of the partners should be opened when the capitals are:
- fluctuating
- fixed
- either fixed or fluctuating
- none of these
Q18 | Investment in partnership is made by introducing:
- cash
- none – cash assets
- cash or non – cash assets
- none of these.
Q19 | Partnership is formed by the partners by:
- written agreement
- oral agreement
- written or oral
- none of these
Q20 | Any partner who investments in the business but does not take active part in the businessis:
- secret partner
- sleeping partner
- active partner
- nominal partner
Q21 | The written agreement of partnership is called:
- partnership deed
- articles of association
- memorandum of association
- certificate of incorporation
Q22 | Under fixed capital methods, profit will be credited to:
- capital account
- drawings
- current a/c
- profit & loss
Q23 | The members of partnership firm are individually called as:
- director
- investor
- partner
- manager
Q24 | Liability of partners in a partnership business is:
- limited
- un-limited
- limited & unlimited
- none of these
Q25 | Capital of the partners are maintained by:
- fixed capital method
- fluctuating capital methods
- by any two above methods
- none of them.