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




Question 61 :
Closing entry for sales discount is

  1. Sales Discount A/c Dr To Profit - Loss A/c.
  2. Sales Discount A/c Dr. To Sales A/c
  3. Profit - Loss A/c Dr To Sales Discount
  4. None of the above
  

Question 62 :
Outstanding salaries are shown as

  1. An expense
  2. A liability
  3. An asset
  4. None of the above
  

Question 63 :
Which of the following account is not closed?

  1. Expenses
  2. Interest received
  3. Prepaid insurance
  4. Drawings
  

Question 64 :
Gross profit is transferred to _____ Account.

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

Question 65 :
All indirect expenses are debited to _____ Account.

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

Question 66 :
Bank overdraft is a _____.

  1. Assets
  2. Expenses
  3. liability
  4. All of the above
  

Question 67 :
Prepaid insurance is

  1. Deducted from insurance
  2. Added to insurance
  3. Shown on asset side
  4. (a) and (b)
  

Question 68 :
Assets and liabilities for a particular period are shown in the Balance Sheet.

  1. TRUE
  2. FALSE
  

Question 69 :
Salary payable is shown in balance sheet on _____ side.

  1. Liability
  2. Fixed asset
  3. Current Asests
  4. Fictious assets
  

Question 70 :
Profit - Loss Account is a statement.

  1. TRUE
  2. FALSE
  

Question 71 :
Carriage outward is shown in _____ A/c.

  1. P - L A/c
  2. Trading A/c
  3. Balance Sheet
  4. None of the above
  

Question 72 :
Net profit is _____ to capital.

  1. deducted
  2. Divided
  3. added
  4. None of the above
  

Question 73 :
Expenses due but not paid appear in the Balance Sheet on asset side.

  1. TRUE
  2. FALSE
  

Question 74 :
RDD is made on debtors after writing off bad debts.

  1. TRUE
  2. FALSE
  

Question 75 :
Wages paid for erection of machinery are debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 76 :
Prepaid expenses are shown in balance sheet on _____ side.

  1. Current Liability
  2. None of the above
  3. Assets
  4. ficitious libility
  

Question 77 :
Goodwill is not a _____ asset.

  1. fictitious
  2. fixed
  3. current
  4. None of the above
  

Question 78 :
Drawings Account shows _____ balance.

  1. debit
  2. credit
  3. None of the above
  4. Opening
  

Question 79 :
Excess of income over expenditure is a net profit.

  1. TRUE
  2. FALSE
  

Question 80 :
Closing stock is valued at cost or at market value whichever is lower.

  1. TRUE
  2. FALSE
  

Question 81 :
Carriage inward is shown in _____ A/c.

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

Question 82 :
Current assets are shown in the business for a longer period.

  1. TRUE
  2. FALSE
  

Question 83 :
Assets must be equal to liabilities.

  1. TRUE
  2. FALSE
  

Question 84 :
Goods taken for personal use are reflected in drawings.

  1. TRUE
  2. FALSE
  

Question 85 :
Interest on drawings is

  1. Expenditure for the business
  2. Expense for the business
  3. Gain for the business
  4. None of the above
  

Question 86 :
Balance Sheet shows profitability of business.

  1. TRUE
  2. FALSE
  

Question 87 :
Closing stock appearing in the Trial Balance is shown on

  1. Asset side of Balance Sheet
  2. Liability side of Balance Sheet
  3. Credit side of Trading Account
  4. None of the above
  

Question 88 :
Interest on capital is debited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  

Question 89 :
Manufacturing Account shows

  1. Cost of production
  2. Gross Profit
  3. Net Profit
  4. None of the above
  

Question 90 :
Interest on drawings is credited to Profit - Loss Account.

  1. TRUE
  2. FALSE
  
Pages