Practice Financial Accounting Multiple Choice Questions with Answers Quiz-3 - MCQGeeks.com

Q.1.

The objective of branch accounting is to know

Profit and loss
Profit and loss of each department
Profit and loss of head office
Profit and loss of manufacturing companies

Q.2.

Under instalment payment system, ownership of goods

Is transferred at the time of payment of last instalment
Is not transferred
Is transferred at the time of signing the contract
None of the above

Q.3.

The balance in the 'goods sent to branch ' account is transferred to

Branch account
Head office account
Profit and loss account
Trading or purchase account

Q.4.

Dead Rent is also called as

Outstanding Rent
Prepaid Rent
Minimum Rent
Post paid Rent

Q.5.

Trial balance can be prepared

At any time of year
At the end of year
In the beginning of year

Q.6.

What is the purpose of preparing trading account?

To calculate net sales
To calculate cost of sales
To calculate gross profit/(loss)
To calculate net proft

Q.7.

The balance sheet formula is

Assets = Liability + Capital
Assets = Capital-Liability

Q.8.

Down payment is the payment made

At the time of paying the first instalment
At the time of signing the agreement
At the time of paying the second instalment
At the time of paying the last instalment

Q.9.

Return outwards are

Goods returned to supplier
Goods received from supplier
Goods sold to customers
Goods returned from customer