B.COM AFM-1 (Final Accounts) MCQ's




Question 1 :
Drawing reduces capital.

  1. TRUE
  2. FALSE
  

Question 2 :
Classification of assets and liabilities as current or long term depends on :

  1. order of listing in the ledger
  2. whether they appear on Balance Sheet or the income statement.
  3. Relative liquidity of the items
  4. Format of balance sheet
  

Question 3 :
Sales Return in Trial Balance is deducted from

  1. Purchases
  2. Sales
  3. Wages
  4. Salary
  

Question 4 :
Trading Account always shows debit balance.

  1. TRUE
  2. FALSE
  

Question 5 :
Return outwards in Trial Balance are deducted from

  1. Sales
  2. Purchases
  3. Stock
  4. Capital
  

Question 6 :
Salary payable is shown in the Balance Sheet on _____ side.

  1. asset
  2. Current assets
  3. None of the above
  4. liability
  

Question 7 :
Profit - Loss Account shows financial position of an organisation.

  1. TRUE
  2. FALSE
  

Question 8 :
Fixed assets are stated in the Balance Sheet at market value.

  1. TRUE
  2. FALSE
  

Question 9 :
Current assets are long-term assets.

  1. TRUE
  2. FALSE
  

Question 10 :
Patents and copyright is a

  1. Current asset
  2. Fixed asset
  3. Fictitious asset
  4. Intangible asset
  

Question 11 :
Capital Account always shows credit balance.

  1. TRUE
  2. FALSE
  

Question 12 :
Balance Sheet is an account.

  1. TRUE
  2. FALSE
  

Question 13 :
Unwritten off deferred revenue expenses are shown in the Balance Sheet on _____ side.

  1. liability
  2. Current Liability
  3. asset
  4. None of the above
  

Question 14 :
Drawings are deducted from

  1. Sales
  2. Purchases
  3. Capital
  4. None of the above
  

Question 15 :
For a sugar mill, sugar is a

  1. Raw material
  2. WIP
  3. Finished goods
  4. Assets
  

Question 16 :
Final accounts are prepared at the end of each year.

  1. TRUE
  2. FALSE
  

Question 17 :
Provision for discount on debtors is calculated after deducting provision for doubtful debts.

  1. TRUE
  2. FALSE
  

Question 18 :
Prepaid insurance is shown on _____ side of the Balance Sheet.

  1. Liability
  2. asset
  3. Trading A/c debit
  4. Profit - Loss A/c credit
  

Question 19 :
Interest on drawings is credited to _____ Account.

  1. Balance Sheet
  2. Trading
  3. Profit - Loss
  4. All of the above
  

Question 20 :
Gross profit is transferred to _____ A/c.

  1. P - L A/c
  2. Capital A/c
  3. Sales A/c
  4. Purchase A/c
  

Question 21 :
Outstanding salary is a nominal account.

  1. TRUE
  2. FALSE
  

Question 22 :
Drawing reduces

  1. Capital
  2. Profit
  3. Income
  4. Purchases
  

Question 23 :
Opening stock of finished goods is shown on debit side of

  1. Trading Account
  2. Profit - Loss Account
  3. Balance Sheet
  4. All of the above
  

Question 24 :
For a sugar mill, sugarcane is a

  1. Raw material
  2. WIP
  3. Finished goods
  4. Asset
  

Question 25 :
Discount allowed is shown on

  1. Debit side of Profit - Loss Account
  2. Debit side of Trading Account
  3. Asset side of Balance Sheet
  4. Liability side
  

Question 26 :
For a plastic company plastic is a

  1. Raw material
  2. WIP
  3. Finished goods
  4. All of the above
  

Question 27 :
Income received in advance is an asset.

  1. TRUE
  2. FALSE
  

Question 28 :
Capital Account always shows credit balance.

  1. TRUE
  2. FALSE
  

Question 29 :
Closing stock is shown in the Balance Sheet under :

  1. Fixed assets
  2. Current assets
  3. Current liabilities
  4. Fictious assets
  

Question 30 :
Outstanding wages in Trial Balance should be shown in

  1. Trading Account
  2. Profit - Loss Account
  3. Balance Sheet
  4. None of the above
  
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