Financial Accounting 2 MCQs and Notes

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📊 Financial Accounting 2
Q. H.O. sent Rs 5000 as petty cash to branch during the year. Opening and closing balances of petty cash was Rs 1400 and Rs 400 respectively. Then petty expenses of the branch during the year will be ______
  • (A) rs 5000
  • (B) rs 6400
  • (C) rs 4600
  • (D) rs 6000
💬 Discuss
✅ Correct Answer: (D) rs 6000
📊 Financial Accounting 2
Q. If the opening balance of petty cash is Rs 1000, closing balance is Rs 500 and the petty cash received from HO is Rs 700, then what will be the amount of sundry expenses _____
  • (A) rs 1200
  • (B) rs 800
  • (C) rs 700
  • (D) rs 500
💬 Discuss
✅ Correct Answer: (A) rs 1200
📊 Financial Accounting 2
Q. For finding the amount of sundry expenses paid by the branch, the following a/c should be prepared.
  • (A) computer a/c
  • (B) creditors
  • (C) petty cash a/c
  • (D) debtors
💬 Discuss
✅ Correct Answer: (C) petty cash a/c
📊 Financial Accounting 2
Q. HO sends goods to branch at invoice price after adding 25% on cost price, so profit would be ___ % of invoice price
  • (A) 33.33%
  • (B) 40%
  • (C) 20%
  • (D) 25%
💬 Discuss
✅ Correct Answer: (C) 20%
📊 Financial Accounting 2
Q. HO sends goods to branch at 20% profit on invoice price, therefore the percentage of profit on cost comes to ______
  • (A) 15%
  • (B) 25%
  • (C) 33.33%
  • (D) 20%
💬 Discuss
✅ Correct Answer: (B) 25%
📊 Financial Accounting 2
Q. Goods are sent to branch at cost plus 20%. If closing stock of the branch is Rs 60,000 at invoice price, Rs ______ will be credited to stock reserve a/c.
  • (A) rs 10000
  • (B) rs 12000
  • (C) rs 6000
  • (D) rs 12600
💬 Discuss
✅ Correct Answer: (A) rs 10000
📊 Financial Accounting 2
Q. Under the stock and debtor system, Branch A/c is treated as ______
  • (A) joint a/c
  • (B) nominal a/c
  • (C) personal a/c
  • (D) real a/c
💬 Discuss
✅ Correct Answer: (D) real a/c
📊 Financial Accounting 2
Q. When Branch pays expenses for H.O. the following account is debited in the books of the branch _______
  • (A) expenses is debited
  • (B) h.o. a/c is debited
  • (C) branch is debited
  • (D) none
💬 Discuss
✅ Correct Answer: (B) h.o. a/c is debited
📊 Financial Accounting 2
Q. Matching concept means
  • (A) assets = capital + liabilities
  • (B) transactions recorded at accrual concept
  • (C) anticipate no profit but recognize all losses
  • (D) expenses should be matched with the revenue of the period. branch accounts
💬 Discuss
✅ Correct Answer: (D) expenses should be matched with the revenue of the period. branch accounts
📊 Financial Accounting 2
Q. Which of the following is not the main objective of accounting?
  • (A) systematic recording of transactions
  • (B) ascertaining profit or loss
  • (C) ascertainment of financial position
  • (D) solving tax disputes with tax authorities
💬 Discuss
✅ Correct Answer: (D) solving tax disputes with tax authorities

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