Financial Accounting MCQ With Answers (Updated 2021)

Given below are financial accounting mcq with answers updated in 2021. These quiz is useful for MBA, BBA, B COm, M Com, MMS, PGDM, CA students and researchers. These Financial Accounting multiple choice questions can be used for UGC NET, SET, UPSC, MPSC and other competitive entrance exams. These MCQs also can be used for sub-topics like financial statement, financial accountancy, cash flow statement, balance sheet etc.

__________ is a specialised branch of accounting that keeps track of a company’s financial transactions.

A. Cost accounting

B. Management accounting

C. Financial Accounting

D. Corporate accounting

Financial accountancy is governed by ___________

A. local standards only

B. international standards

C. local as well as international accounting standards

D. company’s internal top management only

_____ is the scope of financial accounting.

A. Collection and processing of data

B. Verifying or auditing data

C. Publishing data

D. All of the above

Which is not a benefit of financial accounting?

A. Maintaining systematic records

B. Protecting and safeguarding business assets

C. Historical in nature

D. Facilitates rational decision making

Which is not a limitation of financial accounting?

A. Inadequate information to fix up the price of products manufactured

B. Lack of data for comparison of cost of operation of the firm with other firms in the industry

C. The data available is historical in nature

D. Complies with the various legal requirements

The overriding purpose of financial accounting is to summarize financial activity in business in the ______

A. profit and loss statement

B. balance sheet

C. cash flow statement

D. all of the above

_________ are the basis of the business’s financial accounting.

A. Accounting records

B. Bookkeeping

C. Sales Volume

D. Both A & B

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

Financial accounting reports to the ________ after the completion of the accounting year.

A. internal management

B. external parties

C. Media

D. rivals

Financial accounting reports include _____

A. profit and loss account

B. directors report

C. balance sheet and auditors report

D. all of the above