MCQ Portal

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June 17 Financial Accounts

The Number of MCQs are limited as per ICMAI Past Papers in Syllabus 2016

1. Which of the following options describes the account opened for adjusting creditors in the ledger?

General Ledger Debtors Ledger Creditors Ledger Either Debtors or Creditors Ledger

2. What type of account is a Receipts and Payments account classified as?

Nominal Account Real Account Personal Account Artificial Personal Account

3. What term is used to describe a resource owned by a business intended for generating future profits?

Capital Asset Liability Surplus

4. Which document serves as a source for recording outward invoices?

Purchase Book Sales Book Return Inward Book Return Outward Book

5. Which of the following expenses is considered to be of a capital nature?

Commission on purchases Cost of repairs Rent of factory Wages paid for installation of machinery

6. How should stock taken by a co-venturer be treated in joint venture accounting?

As income of the joint venture As an expense of the joint venture To be ignored from joint venture In the personal books of the co-venturer

7. Where would contingent liabilities be reported in financial statements?

On the liability side of the Balance Sheet On the assets side of the Balance Sheet Not shown in the books of accounts As a note in the Balance Sheet

8. What is the income statement of a Charitable Institution referred to as?

Statement of profit and loss Receipts and Payments Account Income and Expenditure Account Profit and Loss Account

9. Which account is primarily prepared during the dissolution of a partnership firm?

Revaluation Account Goodwill Account Realization Account Memorandum Revaluation Account

10. How are advertisement expenses typically allocated among different departments?

Based on sales of each department Based on purchases of each department Based on the number of units sold by each department Based on the cost of sales of each department