Financial Accounting Multiple Choice type Questions Practice Paper Test

Financial Accounting Multiple Choice type Questions Practice Paper Test

1. What is book keeping
a) processing
b) recording
c) analysing
d) interpreting
2. Which one is current assets?
a) land
b) furniture
c) cash
d) investment
3. Bank account is
a) personal
b) real
c) nominal
d) none of these above
4. Accounting rules contain
a) 3
b) 4
c) 5
d) 2
5. Journalise this transaction, purchase return from ram
a) purchase return to ram
b) ram to purchase return
c) purchase to ram
d) both (a)and(b)
6. Drawings account is related to:
a) nominal account
b) personal account
c) real account
d) company drawings account
7. Which of the following is related to nominal account?
a) bank account
b) commission account
c) furniture account
d) interest received account
8. Goodwill account is related to:
a) nominal account
b) personal account
c) real account
d) tangible account
9. Prepaid insurance is:
a) nominal account
b) personal account
c) real account
d) prepaid account
10. According to the going concern concept, a business entity is assumed to have:
a) a long life
b) a very short life
c) an indefinite life
d) a medium life
11. The gross profit is transferred to…………account.
a) trading
b) profit and loss
c) capital
d) current
12 .Wages paid for installation of machinery should be debited to………))account)
a) machinery
b) wages
c) trading
d) profit and loss
13. All indirect expenses are debited to …………account
a) trading
b) capital
c) profit and loss
d) current
14. A statement showing financial position of the business is called as…………
a) balance sheet
b) trial balance
c) capital
d) trading a/c
15. To find out net profit or net loss of the business…………account is preferred
a) trading
b) capital
c) current
d) profit and loss

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