Test your Knowledge in Financial Accounting MCQs Set 4

The complete record of a transaction in the journal is called:


Options are :

  • Journalizing
  • Narration
  • Posting
  • Entry (Correct)

Answer : Entry

Ledger records transactions in an:


Options are :

  • Daily order
  • Analytical order
  • Arithmetical order
  • Chronological order (Correct)

Answer : Chronological order

The process of transferring the information from journal to ledger is called:


Options are :

  • Carry forward
  • Transferring
  • Posting (Correct)
  • Journalizing

Answer : Posting

 Credit signifies:


Options are :

  • Increase in Revenue
  • All of the Above (Correct)
  • Increase in Capital
  • Increase in Liability

Answer : All of the Above

The process of recording the transactions in the journal is called:


Options are :

  • Posting
  • Accounting
  • Bookkeeping
  • Journalizing (Correct)

Answer : Journalizing

If the bill is drawn and accepted for financial assistance, it is called:


Options are :

  • Finance bill
  • Accommodation bill (Correct)
  • Foreign bill
  • Trade bills

Answer : Accommodation bill

Assets which are short lived are called:


Options are :

  • Wasting assets
  • Current assets (Correct)
  • Fixed assets
  • Intangible assets

Answer : Current assets

A Bills of exchange contains:


Options are :

  • All of the above
  • An order to pay (Correct)
  • A promise to pay
  • A request to pay

Answer : An order to pay

A person who accepts the bill is called:


Options are :

  • Debtor (Correct)
  • Creditor
  • Endorsee
  • Payee

Answer : Debtor

Noting charges are paid when bill is:


Options are :

  • Met
  • None of these
  • Dishonoured (Correct)
  • Discounted

Answer : Dishonoured

 “Bank for collection account” is a :


Options are :

  • Temporary Account (Correct)
  • Permanent Account
  • Current Account
  • Fixed Account

Answer : Temporary Account

The bills becomes payable at any time when they are presented by the holder are called:


Options are :

  • Trade bills
  • Demand bills (Correct)
  • Accommodation bills
  • Term bills

Answer : Demand bills

In case of renewal, the old bill of exchange is:


Options are :

  • Divided between Drawer & Drawee
  • Kept under lock and key
  • Cancelled (Correct)
  • All of these

Answer : Cancelled

If the Drawee refuses to make payment of the bill, it is called:


Options are :

  • Transferring of a bill
  • Renewal of a bill
  • Dishonoring of a bill (Correct)
  • Endorsement of a bill

Answer : Dishonoring of a bill

For payment of bill of exchange, grace days are:


Options are :

  • 5 Days
  • 2 Days
  • 4 Days
  • 3 Days (Correct)

Answer : 3 Days

If the bill is noted from notary public, it is called:


Options are :

  • None of them
  • Accepting
  • Noting (Correct)
  • Discounting

Answer : Noting

On renewal of the bill, interest account is credited in the books of :


Options are :

  • Drawee
  • Drawer (Correct)
  • Endorsee
  • Payee

Answer : Drawer

When a bill of exchange is signed by Drawee, the bill is said to be:


Options are :

  • Endorsed
  • Renewed
  • Accepted (Correct)
  • Retired

Answer : Accepted

A bill from the point of view of a debtor is called:


Options are :

  • None of these
  • Bills acceptable
  • Bills receivable
  • Bills payable (Correct)

Answer : Bills payable

When the bill met at maturity what account is debited by Drawee?


Options are :

  • Bills Receivable
  • Cash Account
  • Bills Payable (Correct)
  • Drawer

Answer : Bills Payable

The period after which a bill of exchange becomes payable is called:


Options are :

  • Allowed period
  • Period of payment
  • Tenor (Correct)
  • Loan Period

Answer : Tenor

Bills payable account is a:


Options are :

  • Nominal Account
  • Personal account
  • None of these
  • Real Account (Correct)

Answer : Real Account

In a bills of exchange :


Options are :

  • Drawee and payee may be the same person
  • Drawer and payee may be the same person (Correct)
  • Drawer and darwee may be the same person
  • All of these

Answer : Drawer and payee may be the same person

The dues imposed on ships and their cargoes when they are in loaded on the port are called:


Options are :

  • Clearing charges
  • Dock charges (Correct)
  • Custom duty
  • Octori charges

Answer : Dock charges

A person who endorsed the bill is known as:


Options are :

  • Endorsee
  • Payee
  • Endorser (Correct)
  • Drawer

Answer : Endorser

A ledger is a book in which:


Options are :

  • Only nominal accounts are opened
  • All real, nominal and personal accounts are opened (Correct)
  • Only real accounts are opened
  • Only Personal and Cash accounts are opened

Answer : All real, nominal and personal accounts are opened

Books of original entry are called:


Options are :

  • Journal (Correct)
  • Trial Balance
  • Ledger Book
  • Classified Book

Answer : Journal

Compound entry affected at least:


Options are :

  • One Account
  • Three Account (Correct)
  • Two Account
  • Four Account

Answer : Three Account

Ledger is called:


Options are :

  • Book of final entry
  • Book of personal entry
  • None of them (Correct)
  • Book of original entry

Answer : None of them

The book in which transactions are finally recorded is called:


Options are :

  • Final account (Correct)
  • Journal
  • Trial balance
  • Ledger

Answer : Final account

"Jour" means


Options are :

  • Year
  • Week
  • Month
  • Day (Correct)

Answer : Day

Ledger is the book which contains a record in:


Options are :

  • Classified manner (Correct)
  • Chronological manner
  • Summarized manner
  • Simple manner

Answer : Classified manner

In case of a debt is becoming bad the amount should be credited to :


Options are :

  • Suspense Account
  • Debtor Account (Correct)
  • Debtor Account
  • Sales Account

Answer : Debtor Account

The arithmetical accuracy in the books of accounts is verified through:


Options are :

  • Journal
  • Trial Balance (Correct)
  • Balance Sheet
  • Ledger

Answer : Trial Balance

The amount of salary paid to Ali should be debited to:


Options are :

  • Ali's Account
  • None of these
  • Cash Account
  • Salary Account (Correct)

Answer : Salary Account

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