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Financial Accounting MCQ With Answers (Updated 2021)

______ is not a primary source of long-term debt financing.

A. Accounts payable

B. Notes payable

C. Leases

D. Bonds

View Answer

A. Accounts payable

Cash flow is also known as _____

A. balance sheet flow

B. profit and loss account

C. fund flow statement

D. notes and schedules

View Answer

C. fund flow statement

______ is used to analyse 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

C. Profit & Loss a/c

D. income statement

View Answer

B. Cash flow

Notes and schedules is used to present supplementary information explaining different items of financial statements.

A. balance sheet flow

B. profit and loss account

C. fund flow statement

D. notes and schedules

View Answer

D. notes and schedules

______ is a written evidence in support of a business transaction.

A. Ledger

B. Voucher

C. Ledger Posting

D. Journal

View Answer

B. Voucher

Notes and schedules include disclosures about the risk and uncertainties affecting the enterprise and such items as disclosure of _______

A. accounting policies segment reports

B. report of operations in the process of discontinuation

C. Both A & B

D. None of the above

View Answer

C. Both A & B

Trademark, Copyrights & Patents are _____ assets.

A. Intangible

B. Fixed

C. Current

D. Tangible

View Answer

A. Intangible

Capital increases if ______

A. cost increases

B. Expenses increases

C. Revenue increases

D. Interest on capital increases

View Answer

C. Revenue increases

Current assets minus current liabilities is equal to ______

A. losing capital

B. gaining capital

C. fixed capital

D. working capital

View Answer

D. working capital

A _______ can also be referred to as a tangible asset.

A. liquid asset

B. fixed asset

C. current asset

D. other asset

View Answer

B. fixed asset

This is all about MCQ on financial accounting and related topics.

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