Hello friends in this post we are going to discuss about FINANCIAL ACCOUNTANCY Multiple choice questions | FINANCIAL ACCOUNTANCY MCQ | FINANCIAL ACCOUNTANCY Objective type questions | FINANCIAL ACCOUNTANCY MCQ with answers

1.—————-is also called as Sales ledger.

a. Personal ledger b. impersonal ledger c. Debtors ledger d. Creditors ledger

Ans: c

2. General ledger also known as __

a) Impersonal Ledger b) purchase ledger c) sold ledger d) bought ledger

Show Answer

Ans: a

3.——–is also called as Purchase ledger

a) personal ledger b) Nominal ledger c) Debtors ledger d) Creditors ledger

Ans: d

4.Bought ledger account is opened in—————

A. Creditors ledger B. Debtors ledger C. General ledger D. Sales ledger

Ans: c

5.General ledger adjustment a/c are opened in __

A. Debtors ledger B. Creditors ledger C. Debtors and Creditors ledger D. Bills receivable ledger

Ans: c

6.In departmental accounts expenses like director fees, interest is transferred to _

A. Balance Sheet B. Trading account C. General P & L account D. P & L Appropriation account

Ans: c

7.Under stock and debtor’s system of branch account, branch adjustment account is opened when goods sent to branch is at __

A. Cost price B. Invoice price C. Market price D. Normal price

Ans: B

8.Royalty is a _ to lessee

A. Income B. Expenses C. Both income and expenses D. None of the above

Ans: B

9. Excess of Minimum rent over royalties is called

A. short workings B. dead rent C. royalties D. none of the above

Ans: A

10. Only personal account and cash account are opened in

A. Single entry system B. Double entry system C. Accrual system D. Mercantile system

Ans: A

11.All the royalties and short workings irrecoverable should be transferred to

A. Trading account B. Balance sheet C. Profit & Loss Account d. None of the above

Ans: C

12. Royalty account is in the nature of

A. Real account B. Nominal account C. Personal account D. Revenue account

Ans: B

13. Irrecoverable short workings are transfer to

A. Trading account B. P&L account C. Balance sheet D. P&L Appropriation account

Ans: B

14. When royalty is paid, in the books of lessee, it is debited to

A. Royalty account B. P&L account C. Land lord account D. Lessee account

Ans: C

15. When short workings are to be recovered the account to be debited is

A. Land lord account B. Short workings account C. P&L account D. Lessee account

Ans: A

16. Short working means

A. Excess of minimum rent over royalty B. Excess of royalty over minimum rent C. Surplus of royalty D. Actual minimum rent

Ans: A

17. Royalty are connected with the following type of business

A. Manufacturing industry B. Mining industry C. Construction business D. Trading business

Ans: B

18. Royalty is the agreement between the following persons

A. Seller and buyer B. Banker and customer C. Trustee and beneficiary D. Land lord and tenant

Ans: d

19. Dead rent is also called

A. Outstanding rent B. Minimum rent C. Prepaid rent D. Future rent

Ans: B

20. The right of lessee to recoup short working is related to

a. First three years b. Subsequent two years c. Terms and agreements d. No specify terms

Ans: C

21. Royalty payable is debited to _____by lessee.

A. Royalty account B. Land lord account C. P&L account D. Trading account

Ans: A

22. In case the right to require short workings has expired, the balance in the short workings account is transfer to

A. Land lord account B. P&L account C. Royalty account D. Trading account

Ans: B

23. In case of sub-lease royalty earned by the lessor is credited to

A. Sub-lessee account B. P&L account C. Royalty receivable account D. Sub-lessor account

Ans: C

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