MCQ on Introduction to Financial Accounting | Corporate and Management Accounting MCQs for CS Executive and Other Competitive Exams

MCQ on Introduction to Financial Accounting: Check the below Corporate and Management Accounting MCQ on Introduction to Financial Accounting with Answers Pdf free download. Corporate and Management Accounting MCQ on Introduction to Financial Accounting Questions for Corporate and Management Accounting with Answers were prepared based on the latest exam pattern. We have provided Corporate and Management Accounting MCQ on Introduction to Financial Accounting with Answers to help students understand the concept very well. Students should practice CS Executive MCQ on Introduction to Financial Accounting Questions with Answers based on the latest syllabus.

MCQ on Introduction to Financial Accounting


1. Property, plant, and equipment are conventionally presented in the balance sheet at
(A) Replacement cost less accumulated depreciation
(B) Historical cost less salvage value
(C) Historical cost less depreciation portion thereof
(D) Original cost adjusted for general price-level changes

View Answer

(C) Historical cost less depreciation portion thereof


2. The determination of the number of bad debts is an accounting
(A) Policy
(B) Estimate
(C) Parameter
(D) None of the above

View Answer

(B) Estimate


3. All accounts are classified into
(A) Personal
(B) Real
(C) Nominal accounts
(D) Any of the above

View Answer

(D) Any of the above


4. Generally, which of the following measurement bases are usually accepted in accounting parlance?
(A) Historical Cost
(B) Current Cost
(C) Realizable Value
(D) Any of the above

View Answer

(D) Any of the above


5. Accounts recording transactions with a person or group of persons are known as
(A) Personal accounts
(B) Real accounts
(C) Nominal accounts
(D) impersonal accounts

View Answer

(A) Personal accounts


6. Personal accounts are of the following types:
(A) Natural, Real, Representative
(B) Artificial, Legal, Nominal
(C) Natural, Artificial, Representative
(D) Any of the above

View Answer

(C) Natural, Artificial, Representative


7. An account recording financial transactions with an artificial person created by law or otherwise are termed as
(A) Artificial or legal person account
(B) Natural persons’ personal account
(C) Representative personal accounts
(D) Any of the above

View Answer

(A) Artificial or legal person account


8. An account recording transaction with an individual human being is termed as a
(A) Artificial or legal person account
(B) Natural persons’ personal ac-count
(C) Representative personal accounts
(D) Any of the above

View Answer

(B) Natural persons’ personal ac-count


9. A specific accounting policy refers to
(A) Principles
(B) Methods of applying those principles
(C) Both (A) & (B)
(D) None of the above

View Answer

(C) Both (A) & (B)


10. Accounts relating to properties or assets are known as
(A) Real Accounts
(B) Personal Accounts
(C) Nominal Accounts
(D) None of above

View Answer

(A) Real Accounts


11. When a change in accounting policy is justified?
(A) To comply with accounting standard
(B) To ensure the more appropriate presentation of the financial statement of the enterprise
(C) To comply with law
(D) All of the above

View Answer

(D) All of the above


12. Accounts that represent a certain person or group of persons are termed as
(A) Artificial or legal person account
(B) Natural persons personal account
(C) Representative personal accounts
(D) Any of the above

View Answer

(C) Representative personal accounts


13. It is essential to standardize the accounting principles and policies in order to ensure
(A) Transparency
(B) Profitability
(C) Reputation
(D) All of the above

View Answer

(A) Transparency


14. Which of the following types of accounts represent assets and properties which can be seen, touched, felt, measured, purchased, and sold?
(A) Tangible real accounts
(B) Intangible real accounts
(C) Representative personal accounts
(D) Artificial or legal person account

View Answer

(A) Tangible real accounts


15. Accounting policies followed by organizations
(A) Can be changed every year
(B) Should be consistently followed from year to year
(C) Can be changed after 5 years
(D) None of the above

View Answer

(B) Should be consistently followed from year to year


16. Accounts relating to income, revenue, gain expenses, and losses are termed as:
(A) Real Accounts
(B) Personal Accounts
(C) Nominal Accounts
(D) None of above

View Answer

(C) Nominal Accounts


17. The rule for nominal accounts is
(A) Debit the Receiver, Credit the giver
(B) Debit what comes in, Credit what goes out
(C) Debit all expenses and losses, Credit all incomes and gains
(D) All of the above

View Answer

(C) Debit all expenses and losses, Credit all incomes and gains


18. ‘Provisions for doubtful debts’ and ‘provision for discount on debtors’ are based on
(A) Prudence
(B) Substance over from
(C) Materiality
(D) All of the above

View Answer

(A) Prudence


19. ____ includes identifying, recording, classifying, and summarizing the transactions.
(A) Accounting posting
(B) Accounting cycle
(C) Tally of accounts
(D) All of the above

View Answer

(B) Accounting cycle


20. Journal is the book in which every transaction is recorded before being posted into the ledger.
(A) Primary entry
(B) Secondary entry
(C) Third entry
(D) None of above

View Answer

(A) Primary entry


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