MCQs Financial Accounting BSCS
MCQs Financial Accounting BSCS
a. Accountant
b. Business (Correct)
c. Owner of business
d. None of these
a. Accounting (Correct)
b. Business
c. Both a & b
d. None of above
3. The branch of accounting which provides information to people outside the business is
called:
a. Accounting
b. Financial accounting (Correct)
c. Tax accounting
d. None of these
4. The branch of accounting that generates information for internal decision makers of
business:
5. The branch of accounting that provides information needed to prepare income tax returns:
a. Financial accounting
b. Tax accounting (Correct)
c. Cost accounting
d. All of these
a. Accounting
b. Trade
c. Business (Correct)
d. All of these
8. A business in which first goods are produced from raw material and then sold to customers
is called:
9. Business documents which convey concise picture of profitability and financial position of
business are called:
a. Accounting
b. Financial statements (Correct)
c. Financial accounting
d. All of these
a. Assets (Correct)
b. Liabilities
c. Capital
d. None of these
11. Assets which provides benefits for one year or less than one year are called:
a. Fixed assets
b. Fixed tangible assets
c. Current assets
d. Intangible assets
12. Assets which provide benefit for more than one year are called:
a. Current assets
b. Fixed assets (Correct)
c. Intangible assets
d. Fictious assets
a. Intangible
b. Tangible (Correct)
c. Fictious
d. None of these
14. Fixed assets which do not have physical existence are classified as:
a. Tangible
b. Intangible (Correct)
c. Fictious
d. All of these
a. Assets
b. Liability (Correct)
c. Capital
d. Drawings
16. Liabilities of business payable in one or less than one year are called:
a. Medium-term
b. Long-term
c. Current (Correct)
d. None of these
17. Liabilities of business payable within 2 to 5 years of time period are called:
a. Current
b. Long-term
c. Medium-term (Correct)
d. All of these
18. Liabilities payable by business after more than five years are called:
a. Long-term (Correct)
b. Medium-term
c. Current
d. All of these
19. When goods or services are exchanged for immediate cash payment, this transaction is
called:
a. External transaction
b. Internal transaction (Correct)
c. Credit transaction
d. All of these
34. When cash is used by the owner for household purpose, it is debited to:
a. Cash
b. Capital
c. Drawing (Correct)
d. All of these
41. If amount in debit column of ledger is greater than its credit column the balance is called:
a. Positive
b. Debit (Correct)
c. Negative
d. Credit
42. If amount is credit column of ledger is greater than its debit column, the balance is called:
a. Positive
b. Debit
c. Negative
d. Credit (Correct)
43. The process of recording information from journal to ledger is called:
a. Recording
b. Journalizing
c. Positing (Correct)
d. All of these
A company purchases land with an office building. The building has a useful life of 20 years.
How should the land be depreciated?
(a) Depreciate over 20 years
(b) Depreciate over useful life of the land
(c) Don’t depreciate the land (Correct)
(d) None of these
Medium Ltd. purchases the car for Rs. 2,200,000. It has an estimated salvage value of Rs.
200,000 and a useful life of five years. What is the depreciation charge for the first year
under the straight line method?
(a) Rs. 400,000 (Correct)
(b) Rs. 555,555
(c) Rs. 666,667
(d) None of the above