FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER – 2) MCQ TESTBy cmaknowledge / January 17, 2026 This post has already been read 217 times!FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER – 2) MCQ TESTTest your knowledge with this MCQ challenge on Paper 2: Financial & Cost Accounting fundamentals. Perfect for CMA, CA, and B.Com students! FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER - 2) MCQ TESTCMA FOUNDATION- FUNDAMENTALS OF FINANCIAL AND COST ACCOUNTING (PAPER - 2) MCQ TEST 1 / 50The determination of expenses for an accounting period is based on the concept of Objectivity Materiality Matching Periodicity 2 / 50Accounting provides information on : Cost and income for managers Company’s tax liability for a particular year Financial conditions of an institutions All of the above 3 / 50The main Purpose of Financial Accounting is? To Provide financial information to shareholders To maintain Balance Sheet To minimize taxes To keep track of liabilities 4 / 50The revenues and expenses of a company are displayed in which statement? Balance Sheet Cash Flow Statement Income Statement Periodicity 5 / 50The rent paid to landlord is credited to : Landlord’s A/c Rent A/c Cash A/c None 6 / 50The process of transfer of entries from day book to ledgers is called : Simple posting Journal posting Transaction Ledger posting 7 / 50Ledger contains various________ in it : Transactions Entries Accounts None 8 / 50Rent Account is : Personal Real Nominal None 9 / 50A withdrawal of cash from business by the proprietor should be credited to : Drawing A/c Capital A/c Cash A/c Purchase A/c 10 / 50A sale of goods to Ram for cash should be debited to: Ram Cash Sales Capital 11 / 50In an Account if debit > credit side, the balance is known as the : Negative balance Debit balance Positive balance Credit balance 12 / 50Prepaid rent is a : Nominal A/c Representative Personal A/c Tangible Assets A/c None 13 / 50The process of recording business transactions in a book of original entry is known as Journal Balance posting none 14 / 50S.B.I Account is a … Nominal Artificial Personal Account Representative Personal Account None 15 / 50Nominal Account represents Profit & gain Loss/Expenses None Both (a) and (b) 16 / 50See also Finance and Accounts MCQ QuizMoney spent ₹ 10,000 as travelling expenses of the directors on trips abroad for purchase of capital assets is Capital Expenditure Revenue Expenditure Deferred Revenue Expenditures None 17 / 50Amount of ₹ 5,000 spent as lawyers’ fees to defend a suit claiming that the firm’s factory site belonged to the plaintiff’s land is: Capital Expenditure Revenue Expenditure Deferred Revenue Expenditures None 18 / 50Insurance claim received on account of machinery damaged completely by fire is Capital Receipt Revenue Receipt Capital Expenditure Revenue Expenditure 19 / 50A bad debt recovered during the year will be Capital Expenditure Revenue Expenditure Capital Receipt Revenue Receipt 20 / 50All revenue receipts and expenditures are shown in Balance Sheet Trading and Profit and Loss A/c Cash Flow Statement Statement of Affairs 21 / 50Compensation received from government for compulsory acquisition of land Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure None of These 22 / 50Received from Soloman & co., an invoice for ₹ 1,500 for repairs to factory walls Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure None of These 23 / 50Import duty of raw material purchased Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure None of These 24 / 50Cost of goods purchased for resale is an example of Capital Expenditure Revenue Expenditure Deferred Revenue Expenditure None of These 25 / 50Life membership fees received by a club is a Revenue Expenditure Capital Expenditure Deferred Revenue Expenditure Capital Receipt 26 / 50Entrance fee of ₹ 20,000 received by a club is a Capital Receipts Revenue Receipt Capital Expenditure Revenue Expenditure 27 / 50₹ 5,000 incurred for up gradation of computer by installation of 128 MB Ram is Capital Expenditure Deferred Revenue Expenditure Revenue Expenditure None of the above 28 / 50Which of the following transaction is of capital nature Purchases of a truck Replacement of old trucks Cost of repairing of truck All of the above 29 / 50Capital expenditures are recorded in the Balance Sheet Profit and Loss A/c Trading A/c Manufacturing A/c 30 / 50See also Boost Your CMA Foundation Scores with Business Mathematics MCQ TestAn expenditure is capital in Nature when The receiver of the amount is going to treat it It increase the quantity of fixed assets for the purchase of fixed assets It is paid as interests on loans for the business It is maintains a fixed assets 31 / 50P & L Account is prepared for period of one year by following Consistency Concept Conservatism Concept Accounting Period Concept Cost Concept 32 / 50Omission of paise and showing the round figures in Financial Statements is based on Conservatism Concept Consistency Concept Materiality Concept Realization Concept 33 / 50Fixed Assets and Current Assets are categorized as per concept of Separate Entity Going Concern Consistency Time period 34 / 50Provision for bad debt is made as per the Entity Concept Conservatism Convention Cost Concept Going Concern Concept 35 / 50Accounting does not record non-financial transactions because of Entity Concept Accrual Concept Cost Concept Money Measurement Concept 36 / 50If a receipt of ₹ 200 from rajesh (debtor) has not been recorded in the books the profits would show An increase of ₹ 2,000 A decrease of ₹ 200 Neither an increase nor a decrease None of the above 37 / 50Goods worth ₹ 272 returned by Lala passed through the books as ₹ 722. The rectification entry is Lala will be debited by ₹ 450 Lala will be debited by ₹ 272 Lala will be credited by ₹ 722 Lala will be credited by ₹ 272 38 / 50Errors of carry forward from one year to another affects : Personal Account Real Account Nominal Account both (a) and (b) 39 / 50Sales of Shyam of ₹ 500 not recorded in the books would affect : Shyam’s Account Sales Account Sales Account and Shyam’s Account Cash Account 40 / 50A Trial Balance will not tally if : correct journal entry is posted twice credit purchase debited to purchases and credited to cash ₹5,000 cash paid to creditors is debited none of the above to creditors for ₹500 and credited to cash as ₹5,000 41 / 50See also Independent Directors Self-Assessment TestWhenever errors are noticed in the accounting records, they should be rectified : At the time of preparation of Trial Balance without waiting the accounting year to end After the preparation of Final Accounts in the next accounting year 42 / 50A Ledger is also called : Book of Original entry Book of Primary entry Book of Final entry None of the above 43 / 50The process of transfer of entries from day book to ledgers is called : Simple posting Journal posting Transaction Ledger posting 44 / 50Ledger contains various in it : Transactions Entries Accounts None 45 / 50In an Account if debit > credit side, the balance is known as the Negative balance Debit balance Positive balance Credit balance 46 / 50The process of recording business transactions in a book of original entry is known as Journal Balance Posting none 47 / 50A Trial Balance shows Honesty of accountants Accuracy of account Only arithmetical accuracy of accounts None of these 48 / 50A trial balance will not balance if correct entry is posted twice The purchase on credit basis is debited to purchases and credited to cash ₹ 500 cash payment to creditors is debited to creditors for ₹ 50 and credited to cash as ₹ 500 None of the above 49 / 50The debts written off as bad, if recovered subsequently are Credited to Bad Debts Recovered A/c Credited to Trade Receivables Account Debited to Profit and Loss Account None 50 / 50Which financial statement represents the accounting equationAssets = Liabilities + Owner’s equity: Income Statement Statement of Cash flows Balance Sheet None Your score isThe average score is 41% 0% Restart quiz Post Views: 29Like this:Like Loading...Related First name Email I accept the privacy policy
Boost Your CMA Foundation Scores with Business Mathematics MCQ Test Leave a Comment / mcqtest / By cmaknowledge
