Financial Accounting MCQ Quiz in తెలుగు - Objective Question with Answer for Financial Accounting - ముఫ్త్ [PDF] డౌన్లోడ్ కరెన్
Last updated on Mar 16, 2025
Latest Financial Accounting MCQ Objective Questions
Top Financial Accounting MCQ Objective Questions
Financial Accounting Question 1:
Which of the following costs should be included in valuing inventories of finished goods
held by a manufacturing company, according to IAS 2 Inventories?
(1) Carriage inwards
(2) Carriage outwards
(3) Depreciation of factory plant
(4) Accounts department costs relating to wages for production employees
Answer (Detailed Solution Below)
Financial Accounting Question 1 Detailed Solution
The Correct Option : 3
The correct answer is: 1, 3 and 4 only
Carriage outwards is a Distribution expense.
Financial Accounting Question 2:
Luis sold goods to Pedro in May 20X9 with a list price of $98,000. Luis allowed a trade discount of 10%. Pedro returned goods with a list price of $3,000 on 31 May and returned a further $5,000 of goods at list price on 6 June as they were found to be unsuitable.
How much should Luis record in the sales returns account at 31 May?
Answer (Detailed Solution Below)
Financial Accounting Question 2 Detailed Solution
The Correct Option : 1
The correct answer is: $2,700
Make sure you read the dates carefully as some of the goods are returned after 31 May and we are only concerned with sales returns at that date, which is the goods with a list price of $3,000. The value of the original sale is after the trade discount of 10%, so the actual amount invoiced for those goods is $2,700 ($3,000 × 90%).
Financial Accounting Question 3:
A firm has the following transactions with its product R.
| 1 January 20X1 | Opening inventory: nil |
| 1 February 20X1 | Buys 10 units at $300 per unit |
| 11 February 20X1 | Buys 12 units at $250 per unit |
| 1 April 20X1 | Sells 8 units at $400 per unit |
| 1 August 20X1 | Buys 6 units at $200 per unit |
| 1 December 20X1 | Sells 12 units at $400 per unit |
The Firm uses FIFO to Value its inventory. What is the inventory value at the end of the year?
Answer (Detailed Solution Below)
Financial Accounting Question 3 Detailed Solution
The correct Ans is: $1,700
Closing inventory $1,700.
| Purchases | Sales | Balance | Inventory $ |
Unit cost $ |
| Units | Units | Units | ||
| 10 | 10 | 3,000 | 300 | |
| 12 | 3,000 | 250 | ||
| 8 | 6,000 | |||
| 2,400 | ||||
| 14 | 3,600 | |||
| 6 | 1,200 | 200 | ||
| 20 | 4,800 | |||
| 12 | 3,100 | |||
| 8 | 1,700 |
Note. * 2@$300 + 10@$250 = $3,100
Financial Accounting Question 4:
At 1 January 20X6, a company's capital structure was as follows:
|
|
$ |
|
Ordinary share capital |
|
|
2,000,000 shares of 50c each |
1,000,000 |
|
Share premium account |
1,400,000 |
In January 20X6 the company issued 1,000,000 shares at $1.40 each.
In September 20X6 the company made a bonus issue of one share for every three held
using the share premium account.
What were the balances on the company's share capital and share premium accounts
In January 20X6 the company issued 1,000,000 shares at $1.40 each.
In September 20X6 the company made a bonus issue of one share for every three held using the share premium account.
What were the balances on the company's share capital and share premium accounts after these transactions?
|
Share capital $ |
Share premium $ |
| 4,000,000 | 800,000 |
| 3,200,000 |
600,000 |
| 2,000,000 | 1,800,000 |
| 2,000,000 | 1,300,000 |
Answer (Detailed Solution Below)
Financial Accounting Question 4 Detailed Solution
The Correct Option : 1
|
Share capital $ |
Share premium $ |
| 2,000,000 | 1,800,000 |
| Share Capital | |||
| $m | $m | ||
| Bal b/f | 1.0 | ||
| Share issue (note 1) | 0.5 | ||
| Bal c/f | 2.0 | Bonus (note 2) | 0.5 |
| 2.0 | 2.0 | ||
| Share Premium | |||
| $m | $m | ||
| Bonus (note 2) | 0.5 | Bal b/f | 1.4 |
| Bal c/f | 1.8 | Share issue (note 1) | 0.9 |
| 2.3 | 2.3 | ||
Notes.
1 Share issues of 1,000,000 shares raises $1,400,000. Shares are 50c each, so share capital is $500,000 and share premium $900,000.
2 Share capital is $1.5m or 3m shares. Therefore, the bonus issue is 1m shares.
Financial Accounting Question 5:
A trader took goods that had cost $2,000 from inventory for personal use. Which one of the following journal entries would correctly record this?
| Debit $ |
Credit $ |
|
| Drawings inventory | 2,000 | |
| 2,000 | ||
| Purchases Drawings | 2,000 | |
| 2,000 | ||
| Sales Drawings | 2,000 | |
| 2,000 | ||
| Drawings Purchases | 2,000 | |
| 2,000 |
Answer (Detailed Solution Below)
Financial Accounting Question 5 Detailed Solution
The Correct Option : 1
| Debit $ |
Credit $ |
|
| Drawings Purchases | 2,000 | |
| 2,000 |
Debit drawings and Credit the cost to purchases.
Financial Accounting Question 6:
The carrying amount of a company's non-current assets was $200,000 at 1 August 20X0.
During the year ended 31 July 20X1, the company sold non-current assets for $25,000 on
which it made a loss of $5,000. The depreciation charge for the year was $20,000.
What was the carrying amount of non-current assets at 31 July 20X1?
Answer (Detailed Solution Below)
Financial Accounting Question 6 Detailed Solution
The Correct Option : 1
The correct answer is: $150,000
| $ | |
| Carrying amount at 1 August 20X0 | 200,000 |
| Less depreciation | 20,000 |
| 180,000 | |
| Proceeds | 25,000 |
| Loss | 5,000 |
| Carrying amount at asset sold | 30,000 |
| Therefore, carrying amount | 150,000 |
Financial Accounting Question 7:
Which of the following statements about the requirements of IAS 37 Provisions, Contingent
Liabilities and Contingent Assets are correct?
(1) Contingent assets and liabilities should not be recognised in the financial statements.
(2) A contingent asset should only be disclosed in the notes to a financial statement where an inflow of economic benefits is probable.
(3) A contingent liability may be ignored if the possibility of the transfer of economic benefits is remote.
Answer (Detailed Solution Below)
Financial Accounting Question 7 Detailed Solution
The Correct Option : 1
The correct answer is: All three statements are correct
Financial Accounting Question 8:
Which of the following characteristics of financial information are included in the IASB's Conceptual Framework?
(1) Comparability
(2) Relevance
(3) Timeliness
(4) Faithful representation
Answer (Detailed Solution Below)
Financial Accounting Question 8 Detailed Solution
The Correct Option : 1
The correct answer is: All four items
Financial Accounting Question 9:
The Following information is available about a company's dividends:
| $ | ||
| 20X5 | ||
| Sept. | Find dividend for the year ended 30 June 20X5 paid (declared August 20X5) | 100,000 |
| 20X6 | ||
| March | Interim dividend for the year ended 30 June 20X6 paid | 40,000 |
| Sept. | Final dividend for the ended 30 June 20X6 paid (declared August 20X6) | 120,000 |
What figures if, any, should be disclosed in the company's statement of profit or loss and other comprehensive income (SPLOCI) for the year ended 30 June 20X6 and its statement of financial position (SOFP) as at that date?
| SPLOCI for the period | SOFP liability |
| $160,000 deduction | $120,000 |
| $140,000 deduction | nil |
| nil | $120,000 |
| nil | nil |
Answer (Detailed Solution Below)
Financial Accounting Question 9 Detailed Solution
The Correct Option : 1
The Correct answer
| SPLOCI for the period | SOFP liability |
Dividends paid go through the SOCIE, not the statement of profit or loss and other comprehensive income. Also, dividends declared after the end of the reporting period are disclosed by way of note to the financial statements.
Financial Accounting Question 10:
At 1 January 20X5 a company had an allowance for receivables of $18,000.
At 31 December 20X5 the company's trade receivables were $458,000.
It was decided:
• To write off debts totalling $28,000 as irrecoverable
• To adjust the allowance for receivables to the equivalent of 5% of the remaining receivables
What figure should appear in the company's statement of profit or loss for the total of debts written off as irrecoverable and the movement in the allowance for receivables for the year ended 31 December 20X5?
Answer (Detailed Solution Below)
Financial Accounting Question 10 Detailed Solution
The Correct Option : 2
| $ | |
| Closing receivables | 458,000 |
| Irrecoverable debts w/off | 28,000 |
| 430,000 | |
| Allowance required (5%× 430,000) | 21,500 |
| Existing allowance | 18,000 |
| Increase required | 3,500 |
Charge to statement of profit or loss (28,000 + 3,500) = $31,500