FINANCIAL Accounting MCQ
FINANCIAL Accounting MCQ
FINANCIAL Accounting MCQ
A. Cost audit
B. Forensic audit
C. Statutory audit
D. Nonstatutory audit
Answer: Statutory audit
2. The annual reports are to be prepared and published for circulation among the
external end-users such as __________
B. Financial statement
C. Balance sheet
D. Internal audit
Answer: Financial statement
5. _______ explain the financial position of the reporting entity at the end of the
accounting period.
A. Balance sheet
B. Income statement
C. ledger
Answer: Balance sheet
6. _______ helps to find out the profit made on the loss sustained in a particular
accounting period through transactions and events.
A. Income statement
C. Trading account
A. Accounts payable
B. notes payable
C. Leases
D. Bonds
Answer: Accounts payable
9. ______ is used to analyze the pattern of movement or activity during the period to identify
the way the enterprise has generated cash and the way they have been used in an
accounting period.
A. Balance sheet
B. Cash flow
D. income statement
Answer: Cash flow
10. Notes and schedules are used to present supplementary information explaining
different items of financial statements.
A. Ledger
B. Voucher
C. Ledger Posting
D. Journal
Answer: Voucher
12. Notes and schedules include disclosures about the risk and uncertainties affecting
the enterprise and such items as disclosure of _______
C. Both A & B
Answer: Both A & B
A. Intangible
B. Fixed
C. Current
D. Tangible
Answer: Intangible
A. cost increases
B. Expenses increases
C. Revenue increases
Answer: Revenue increases
A. losing capital
B. gaining capital
C. fixed capital
D. working capital
Answer: working capital
A. liquid asset
B. fixed asset
C. current asset
D. other asset
Answer: fixed asset
A. Cost accounting
B. Management accounting
C. Financial Accounting
D. Corporate accounting
Answer: Financial Accounting
B. international standards
C. Publishing data
D. All of the above
C. Historical in nature
Answer: Historical in nature
B. Lack of data for comparison of cost of operation of the firm with other firms in the
industry
B. balance sheet
A. Accounting records
B. Bookkeeping
C. Sales Volume
D. Both A & B
Answer: Both A & B
24. Financial accounting provides accounting information to the ________ though the
information is useful for internal purposes also.
A. external users
B. internal users
C. company
D. competitors
Answer: external users
25. Financial accounting reports to the ________ after the completion of the accounting
year.
A. internal management
B. external parties
C. Media
D. rivals
Answer: external parties
B. directors report
A. Competitors
B. Market
C. Company
D. Finance department
Answer: Company
A. objectivity of data
B. Flexibility of data
C. Relevancy of data
D. Subjectivity of data
Answer: objectivity of data
C. Generally accepted accounting principles does not govern financial accounting reports