Financial Accounting MCQs with Answers pdf Sem 5. Multiple Choice Questions in Financial Accounting with answers. Bookkeeping means MCQ.
Here, we will provide a comprehensive list of multiple-choice questions (MCQs) related to financial accounting along with detailed explanations of the correct answer. You can use these MCQs to check your understanding and identify any areas where you may need more practice.
Financial Accounting MCQs with Answers
1) Popular Financial Accounting Software Packages are:
a) Tally, Ex
b) WinCa and DacEasy
c) Both a & b
d) None of the above
Ans: B
2) Press ___ that would act the calculator.
a) Ctrl+ N
b) F1
c) Alt + Del
d) F11
Ans: A
3) Tally screen can be divided into ___ broad parts.
a) Two
b) Three
c) Four
d) Six
Ans: A
4) The work area at the gateway is broadly separated into ___.
a) Two sections
b) Three sections
c) Five sections
d) Eight sections
Ans: A
5) Tally provides an option to maintain.
a) Accounts only
b) Inventory only
c) Account cum Inventory
d) All of the above
Ans: D
6) On pressing ___ to configure at gateway will show a figure, which allows setting configuration option.
a) F10
b) F11
c) F12
d) F1
Ans: C
7) ___ at the voucher entry screen to enter a contra voucher.
a) Press F11
b) Press F4
c) Press F12
d) Press F10
Ans: B
8) To delete a voucher type, select it in alteration mode and press.
a) <Alt> + <D>
b) <Del> + <F10>
c) <2>
d) <Ctrl> + <A>
Ans: A
9) ___ provides the link between two transaction documents.
a) Batch numbers
b) Godowns
c) Tracking Numbers
d) Unit of measure
Ans: A
10) You can print receipt vouchers by pressing.
a) <Alt> + <P>
b) <Ctrl> + <P>
c) <Ctrl> + C
d) None of the above
Ans: A
11) A purchase voucher can be entered by pressing the function key.
a) F2
b) F4
c) F7
d) F9
Ans: D
12) The scope and functions of Financial Management are divided into ___categories.
a) Two
b) Three
c) Four
d) Six
Ans: A
13) The term ___ was used in place of the present term Financial Management.
a) Finance
b) Corporation Finance
c) Company finance
d) None of the above
Ans: B
14) Wealth maximization is also called.
a) Profitability
b) Profit
c) Value maximization
d) Both A & B
Ans: C
15) ___ leverage occurs when fixed cost funds such as debt or preference capital is employed by the company.
a) Financial Leverage
b) Operational Leverage
c) Combined Leverage
d) None of the above
Ans: A
16) Permanent working capital is also called.
a) Core current assets
b) Hardcore of the capital
c) Both a & b
d) Net working capital
Ans: C
17) The term inventories include.
a) Stock of raw – materials
b) Work–in–progress
c) Finished goods
d) All of the above
Ans: D
18) Loan obtained without any hypothecation of asset ___.
a) Secured loan
b) Unsecured loan
c) Long term loan
d) Short term loan
Ans: D
19) Accounting is the language of ___.
a) Economics
b) Business
c) Computer
d) Commerce
Ans: B
20) The date on which the bill becomes payable is called ___.
a) Grace date
b) Due date
c) The Last date
d) Least date
Ans: B
21) Excess of income over expenditure is ___.
a) Gross loss
b) Net loss
c) Gross profit
d) Profit
Ans: C
22) E.P.S. means.
a) Equity per scheme
b) Earning per share
c) Equity per share
d) Even prudential share
Ans: B
23) An outflow of economic benefit or depletion of assets or increase/creation of liabilities resulting in a decrease in equity ___.
a) Expenses
b) Assets
c) Income
d) Liability
Ans: A
24) Amount created for unforeseen events in future ___.
a) Provision
b) Reserve
c) Fund
d) Gross profit
Ans: B
25) A happening of consequence to an entity is ___.
a) Situation
b) Circumstances
c) Event
d) Problem
Ans: C
26) The residual interest of owners in assets over liabilities.
a) Profit
b) Income
c) Equity
d) Loss
Ans: C
27) The suffix of b/d denotes ___.
a) Brought down
b) Bought up
c) Budget down
d) None of the above
Ans: A
28) ___ is the backbone of the business.
a) Finance
b) Profit
c) Risk
d) None of the above
Ans: A
29) ___ is the mix of different sources of long-term funds such as debt, preference capital, and equity capital in the total capitalization of a company.
a) Capital rationing
b) Capital structure
c) Capital system
d) Cost of capital
Ans: B
30) According to ___ theory the market value of the firm is not affected by the capital.
a) Net income approach
b) Net operating income approach
c) Traditional approach
d) Modigliani – Millar approach
Ans: B
31) The sum total of all current assets of the enterprise employed in the business process ___.
a) Long term capital
b) Permanent capital
c) Fixed capital
d) Gross working capital
Ans: D
32) The pattern of total financing employed by a firm is ___.
a) Capital mixing
b) Capital rationing
c) Capital allocation
d) Financial structure
Ans: D
33) According to ___ the term financial management provides a conceptual and analytical framework for financial decision–making.
a) Traditional approach
b) Modern approach
c) Working capital concept
d) Cost of capital
Ans: B
34) Who suggests the net income approach?
a) Peter F Drucker
b) Modigliani – Millar
c) Chris Bernard
d) David Durand
Ans: D
35) The employment of an asset of funds for which the pays a fixed cost or fixed return ___.
a) Cost of equity
b) Dividend
c) Leverage
d) Buy out ratio
Ans: C
36) The joining of two or more companies involved in different stages of the production or distribution of the same product or service is.
a) Horizontal merger
b) Vertical merger
c) Circular merger
d) None of the above
Ans: B
37) The value of money changes over a period of time means ___.
a) Value of money measured in relation to time
b) Time has money value
c) Money has time value
d) Time and money are tangible assets
Ans: C
38) Money has ___.
a) Time value
b) No time value
c) Earning capacity
d) Both A & C
Ans: A
39) ___ is an instrument of long-term debt issued by a borrower.
a) A bond
b) A debenture
c) Both a & b
d) None of the above
Ans: C
40) There are ___ major theories explaining the relationship between capital & valuation of the firm.
a) Two
b) Three
c) Four
d) Five
Ans: C
Embedded and Real-Time Systems MCQ
41) The different elements of the balance sheet are ___.
a) Assets, Liabilities, and prepaid expenses
b) Debtors, creditors & capital
c) Assets, liabilities & equity
d) Debtors, closing stock & creditors
Ans: C
42) The credit balance in the bank column of the ___ means ___.
a) Cashbook, overdraft
b) Bank book, cash in hand
c) Cashbook, cash at bank
d) Passbook, overdraft
Ans: A
43) Purchases of furniture worth Rs. 5,000. Two elements are ___.
a) Furniture and cash
b) Cash and furniture
c) Purchases and cash
d) Assets and purchase
Ans: A
44) Debit ___ credit ___.
a) What comes in, what goes out
b) Giver, receiver
c) Receipts, payments
d) Income, and expenses, gains & losses
Ans: A
45) Investments are shown and expressed as ___ and ___ in the balance sheets.
a) Short term, the long term investment
b) Quoted, unquoted investment
c) Registered, unregistered investments
d) Fixed and variable investment
Ans: B
46) The term debt is derived from the ___ word ___ meaning owed to me.
a) Latin, debare
b) Latin, debeo
c) French, debit
d) French, debare
Ans: C
47) What is the operating profit when the firm sells 1,000 units?
a) Rs. 10,000
b) Rs. 5,000
c) Rs. 15,000
d) Rs. 20,000
Ans: A
48) What is the operating leverage when the firm sells 1,000 units?
a) 5
b) 6
c) 8
d) 4
Ans: D
49) A company issues 3 years debentures of Rs. 100 at 13% coupon rate with no flotation cost. Hence the BTCD is equal to ___.
a) 13%
b) 15%
c) 30%
d) 10%
Ans: B
50) What is the present value of an annuity of Rs. 5,000 over 3 years when discounted at 5%?
a) 12,865
b) 14,685
c) 13,685
d) 14,976
Ans: C
More MCQs on Financial Accounting
Conclusion
Financial Accounting MCQs with Answers is a helpful guide for anyone looking to understand the fundamentals of financial accounting.
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