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




Question 91 :
Interest on capital is debited to _____ Account.

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

Question 92 :
Net loss is transferred to _____ A/c.

  1. Capital A/c
  2. Sales A/c
  3. Purchase A/c
  4. None of the above
  

Question 93 :
Goods given as sample should be credited to

  1. Advertisement A/c
  2. Sales A/c
  3. Purchase A/c
  4. None of the above
  

Question 94 :
Reserve for discount on debtors shows a credit balance.

  1. TRUE
  2. FALSE
  

Question 95 :
Goodwill is shown on

  1. Asset side of Balance Sheet
  2. Credit side of Trading Account
  3. Credit side of Profit - Loss Account
  4. Debit side of P - L A/c
  

Question 96 :
Proprietor is entitled to a salary.

  1. TRUE
  2. FALSE
  

Question 97 :
Income received in advance is shown on

  1. Liability side
  2. Asset side
  3. Debit side of Profit - Loss Account
  4. None of the above
  

Question 98 :
Wages and salaries appear in

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

Question 99 :
Outstanding salary is an income.

  1. TRUE
  2. FALSE
  

Question 100 :
Trading Account always shows credit balance.

  1. TRUE
  2. FALSE
  

Question 101 :
Balance Sheet gives information regarding :

  1. Result of operations
  2. Financial position on a particular date
  3. operating efficiency of the firm
  4. None of the above
  

Question 102 :
Closing stock of finished goods is shown on

  1. Credit side of Manufacturing Account
  2. Credit side of Trading Account
  3. Credit side of Profit - Loss Account
  4. None of the above
  

Question 103 :
Carriage on purchase of machinery is debited to Trading Account.

  1. TRUE
  2. FALSE
  

Question 104 :
Opening stock of WIP is shown on

  1. Debit side of Trading Account
  2. Debit side of Manufacturing Account
  3. Credit side of Profit - Loss Account
  4. Balance Sheet asset side
  

Question 105 :
Prepaid expenses is a liability.

  1. TRUE
  2. FALSE
  

Question 106 :
Profit - Loss Account is prepared before preparation of Trial Balance.

  1. TRUE
  2. FALSE
  

Question 107 :
Cost of goods sold can be computed by adding opening inventory and net purchases and subtracting :

  1. Net Sales
  2. Sales discount
  3. Closing Stock
  4. Net Purchases
  

Question 108 :
Drawings are debited to _____ Account.

  1. Interest
  2. Investment
  3. Capital
  4. None of the above
  

Question 109 :
Amount due from customers are shown collectively in the Balance Sheet.

  1. TRUE
  2. FALSE
  

Question 110 :
Interest acurued on investment is shown in balance sheet on _____ side.

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

Question 111 :
If closing stock is not considered, Profit - Loss Account will show less profit.

  1. TRUE
  2. FALSE
  

Question 112 :
Income tax paid by a sole trader on his business income should be

  1. Debited to trading A/c
  2. Debited to P - L A/c
  3. Deducted from capital A/c in the balance sheet
  4. All of the above
  

Question 113 :
Carriage inward should be shown in

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

Question 114 :
Salaries and wages appear in

  1. Trading Account
  2. Profit - Loss Account
  3. Balance Sheet
  4. Trial Balance
  

Question 115 :
Productive wages are

  1. Debited to Trading Account
  2. Debited to Profit - Loss Account
  3. Shown as asset
  4. None of the above
  

Question 116 :
Live stock is

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

Question 117 :
Purchase of car is shown on debit side of Trading Account.

  1. TRUE
  2. FALSE
  

Question 118 :
Interest on investment is shown on credit side of _____ Account.

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

Question 119 :
Over valuation of opening stock shows less gross profit.

  1. TRUE
  2. FALSE
  

Question 120 :
Closing stock appearing in the Trial Balance is shown in _____.

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