Competitive MCQs (Commerce): Financial Accounting-I

 

1. Liability- side of the balance-sheet comprises:
(a) Capital and reserve
(b) Long-term liabilities
(c) Current liabilities
(d) All of the above

2. Balance Sheet of a firm indicates which of the following?
(a) Profit or Loss over a period.
(b) Financial position of the unit over a period.
(c) Financial position of the unit as on a particular date.
(d) Position of assets and liabilities over a period of time.

3. Economic life of an enterprise is split into the periodic interval as per ------- concept
(a) Matching
(b) Money measurement
(c) Periodicity
(d) Accrual

4. Provision is provided for doubtful debts is based on the principle of
(a) Going concern
(b) Objectivity
(c) Materiality
(d) Conservation

5. Prepaid salary has
(a) Debit balance
(b) Negative balance
(c) Credit balance
(d) None of the above

6. X draws a bill on Y. X endorsed the bill to Z. Who is the Payee
(a) X
(b) Y
(c) Z
(d) None of the above

7. A promissory note does not require
(a) Noting
(b) Discontinuing
(c) Acceptance
(d) Charging

8. When money is withdrawn from the bank, the bank will ------- the account of customer
(a) Credit
(b) Debit and Credit
(c) Debit
(d) None of the above

9. An entry with more than one debit or credit is known as
(a) Compound entry
(b) Singly entry
(c) Multiple entry
(d) Double entry

10. Loss leads to
(a) reduction in income
(b) Reduction in capital
(c) Reduction in profit
(d) Increase in capital

Answer: DCCDACCCAB