Financial Accounting Mcq
IMT CDL GURGAON 01
MCQ FOR IMT 57 – FINANCIAL ACCOUNTING
Test : (Journal, Ledger, Trial Balance, Errors) Name: _________________
Fundamentals of Accounting Max. Marks: 30
1. RPC Ltd. follows the written down value method of depreciating machinery year after year by applying the principle of
(a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above.
2. A change in accounting policy is justified
(a) To comply with accounting standards (b) To ensure more appropriate presentation of the financial statement of the enterprise. (c) To comply with the law. (d) All of the above.
3. Purchases book records:
(a) All cash purchases (b) All credit purchases (c) Credit purchases of goods in trade. (d) None of the above
4. A Bank Reconciliation Statement is prepared to know the causes for the difference between:
(a) The balances as per cash column of Cash Book and the Pass Book (b) The balance as per bank column of Cash Book and the Pass Book (c) The balance as per bank column of Cash Book and balances as per cash column of Cash Book (d) None of the above
5. While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs.50,000. As a result
(a) Previous year’s profit is overstated and current year’s profit is also overstated (b) Previous year’s profit is understated and current year’s profit is overstated (c) Previous year’s profit is understated and current year’s profit is also understated (d) Previous year’s profit is overstated and current year’s profit is understated
6. Fundamental accounting assumption is
(a) Materiality (b) Business entity
MCQ FOR IMT 57 – FINANCIAL ACCOUNTING
Test : (Journal, Ledger, Trial Balance, Errors) Name: _________________
Fundamentals of Accounting Max. Marks: 30
1. RPC Ltd. follows the written down value method of depreciating machinery year after year by applying the principle of
(a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above.
2. A change in accounting policy is justified
(a) To comply with accounting standards (b) To ensure more appropriate presentation of the financial statement of the enterprise. (c) To comply with the law. (d) All of the above.
3. Purchases book records:
(a) All cash purchases (b) All credit purchases (c) Credit purchases of goods in trade. (d) None of the above
4. A Bank Reconciliation Statement is prepared to know the causes for the difference between:
(a) The balances as per cash column of Cash Book and the Pass Book (b) The balance as per bank column of Cash Book and the Pass Book (c) The balance as per bank column of Cash Book and balances as per cash column of Cash Book (d) None of the above
5. While finalizing the current year’s profit, the company realized that there was an error in the valuation of closing stock of the previous year. In the previous year, closing stock was valued more by Rs.50,000. As a result
(a) Previous year’s profit is overstated and current year’s profit is also overstated (b) Previous year’s profit is understated and current year’s profit is overstated (c) Previous year’s profit is understated and current year’s profit is also understated (d) Previous year’s profit is overstated and current year’s profit is understated
6. Fundamental accounting assumption is
(a) Materiality (b) Business entity