Question 1. Which department is responsible to record the transaction on the basis of invoice?
(a) Marketing Department
(b) Finance Department
(c) Accounting Department
(d) Research and Development department
Reference for answer of this multiple choice question in accounting : Function of Accounting Department
Question 2. What are Interim Financial Statements?
(a) Financial statements which are made and presented for an accounting period of more than one year.
(b) Financial statements which are made and presented for an accounting period of less than one year.
(c) Financial statements which are made and presented for an a day.
(d) Financial statements which are made and presented for an accounting period of one year.
Reference for answer of this multiple choice question in accounting : What are Interim Financial Statements?
Question 3. What is full form of CFP?
(a) It means Certified Financial Planner.
(b) It means Cash Flow Proficiency.
(c) It means Current Fund Possession.
(d) It means Currency Finance Programme.
Reference for answer of this multiple choice question in accounting : Pardeep Dhingra Founder of CFP Course in India
Question 4. For what purpose sensitive analysis is useful?
(a) To know the effect of unknown factors on cost of capital.
(b) To know the effect of unknown factors on leverage.
(c) To know the effect of unknown factors on financial statements.
(d) To know the effect of unknown factors on NPV.
Reference for answer of this multiple choice question in accounting : Sensitive Analysis in Finance
Question 5. What will be the journal entry of following transaction?
A machinery of Rs. 4000 was sold for Rs. 5200. Depreciation provision to date was Rs. 400; and commission paid to selling agent was Rs. 320 and wages paid to the worker for removing the machine was Rs. 50.
(a) Cash Account Debit 4830
Machinery Account Credit 3600
Profit and Loss Account 1230
and depreciation, commission and wages journal entry will be done separately.
(b) Cash Account Dr. 5200
Depreciation Account Dr. 400
Commission Account Dr. 320
Wages Account Dr. 50
Machinery Account Cr. 4000
Profit and Loss Account Cr. 1970
(c) Cash Account Dr. 5920
Machinery Account Cr. 4000
Profit and Loss Account Cr. 1970
(d) Cash Account 5200
All expenses account Dr. 770
Machinery Account Cr. 4000
Profit and loss account Cr. 1970
Reference for answer of this multiple choice question in accounting : Most Difficult Journal Entries
Question 6. What does Seignorage mean?
(a) It means expenses on issue of notes.
(b) It means loading charges of notes.
(c) It means inflation tax.
(d) It means VAT.
Reference for answer of this multiple choice question in accounting : Seignorage Term has been Changed
Question 7. What are the effects of creating provision for doubtful debts on the balance sheet ?
(a) It will increase our current liabilities.
(b) It will decrease our current liabilities in balance sheet.
(c) It will increase our current assets in balance sheet.
(d) There will no effect of creating provision for doubtful debts on the balance sheet.
Reference for answer of this multiple choice question in accounting : Accounting Answers - Part 1
Question 8. Which is the part of costing system?
(a) Cost of goods sold
(b) Operating expenses
(c) Non-operating costing
(d) Batch Costing
Reference for answer of this multiple choice question in accounting : Costing System
Question 9. Which is not part of Cost Classification?
(a) Cost of purchasing machinery
(b) Cost of purchasing raw material
(c) Cost of using labors in production
(d) Overheads
Reference for answer of this multiple choice question in accounting : Cost Classification
Question 10. What is Buyback of Shares?
(a) It means to buy own shares by company.
(b) It means to return shares to company by shareholder.
(c) It means to convert shares into debentures.
(d) It means to give more shares to those who have bought shares from company.
Reference for answer of this multiple choice question in accounting : Buyback of Shares
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