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Financial Accounting MCQ With Answers (Updated 2021)

Financial accounting cover overall performance of the _______

A. Competitors

B. Market

C. Company

D. Finance department

View Answer

C. Company

Financial accounting reports lay greater emphasis on the _______

A. objectivity of data

B. Flexibility of data

C. Relevancy of data

D. Subjectivity of data

View Answer

A. objectivity of data

Presentation of of financial accounting reports is mandatory under the provisions of of section 209 (1), 210 (1) and 216, 217 of __________

A. the business act 1956

B. the companies act 1956

C. the company act 1965

D. the company 2016

View Answer

B. the companies act 1956

Select the correct answer.

A. financial accounting reports generally govern accepted accounting principles

B. Generally accepted accounting principles governing financial accounting reports

C. Generally accepted accounting principles does not governing financial accounting reports

D. There is no relation between Generally accepted accounting principles and financial accounting reports

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B. Generally accepted accounting principles governing financial accounting reports

Financial accounting statements are subject to ______

A. Cost audit

B. Forensic audit

C. Statutory audit

D. Non statutory audit

View Answer

C. Statutory audit

The annual reports are to be prepared and published for circulation among the external end users such as __________

A. Company, competitors, contributors and colleagues

B. Customers. creators, collaborators and contractors

C. Government, competitors, owners and top management

D. shareholders, investors, bankers, debenture holders and creditors

View Answer

D. shareholders, investors, bankers, debenture holders and creditors

____________ is a structured representation of the financial performance and financial position of a business and changes over a period of time.

A. Profit and loss account

B. Financial statement

C. Balance sheet

D. Internal audit

View Answer

B. Financial statement

________ are the components of financial statements.

A. profit and loss account and balance sheet

B. cash flow and fund flow statement

C. notes and schedules

D. All of the above

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D. All of the above

_______ explain the financial position of the reporting entity at the end of the accounting period.

A. Balance sheet

B. Income statement

C. ledger

D. Notes & schedules

View Answer

A. Balance sheet

_______ helps to find out the profit made on loss sustained in a particular accounting period through transactions and events.

A. Income statement

B. Profit and loss account

C. Trading account

D. None of the above

View Answer

B. Profit and loss account

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