Final Accounts MCQs

We have prepared a Multiple Choice Questions (MCQs) test for Final Accounts Chapter for the ease of students to clear their concepts. Final Accounts MCQs test consists of 20 questions, every question must be answered to move to the next question. This MCQs test will help students to prepare for their objective exams as well as their interviews.

If you feel difficulty to answer the questions, we advise you to thoroughly read “Final Accounts” chapter from Financial Accounting Section.

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1. Statements prepared to know profit or loss and financial position of the business are called:

 
 
 

2. Account which shows Gross Profit or Gross Loss of the business is called:

 
 
 

3. Trading Account is prepared to know:

 
 
 
 

4. On debit side of trading Account we record:

 
 
 
 

5. Closing stock is recorded in:

 
 
 
 

6. Profit and Loss Account shows the:

 
 
 
 

7. Operating expenses are recorded in:

 
 
 
 

8. Expenses relating to sale of goods are shown in:

 
 
 
 

9. Profit and Loss Account is prepared:

 
 
 
 

10. Carriage Outwards is an example of:

 
 
 
 

11. Which are indirect expense of the followings?

 
 
 
 

12. Income earned from other than routine activities is called:

 
 
 
 

13. Discount received is an example of:

 
 
 
 

14. Which are indirect incomes of the followings?

 
 
 
 

15. On credit side of Profit and Loss Account we record:

 
 
 
 

16. Balance Sheet is a statement of:

 
 
 

17. Balance Sheet discloses the financial position of a business:

 
 
 
 

18. Properties, things and receivables having certain value owned by business are called:

 
 
 
 

19. Any physical thing that has money value is:

 
 
 

20. Assets which have physical existence are called:

 
 
 
 

9 thoughts on “Final Accounts MCQs”

  1. I cant understand how operating expenses can be recorded in the balance sheet.

    Which are indirect expense of the followings?

    Salaries Expenses
    Insurance Expenses
    Rent Income
    All of these
    HOW IT ANSWER GIVEN All of these
    Reply

    Reply
  2. I think the following two mcqs need correction.

    7. Operating expenses are recorded in:

    Trading Account
    Profit and Loss Account (should be)
    Balance Sheet (shouldn’t be)
    All of these

    11. Which are indirect expense of the followings?

    Salaries Expenses (this one)
    Insurance Expenses
    Rent Income
    All of these (not this one)

    Reply

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