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Financial Accounting SSC CGL Daily Test Paper 4: AAO

Financial Accounting SSC CGL Daily Test Paper 4: AAO

Financial Accounting SSC CGL Daily Test Paper 4: AAO

Q81. In the Bank reconciliation statement “Deposit in transit” is usually:

(A)  Subtracted from Bank balance

(B)  Added to bank balance

(C)  Added to cash balance

(D)  Subtracted from cash book balance


Q82. A cash deposit made by business appears on the bank statement as _______ balance:

(A) Debit

(B) Credit

(C) Expenses

(D)  Liabilities

Q83. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business):

(A)  Cash receipt journal

(B)  Cash payment journal

(C)  Cash book

(D)  Financial Statements


Q84. A check returned by bank marked “NSF” means that:

(A)  Bank can’t identify your identity

(B)  There are not sufficient funds in your account

(C)  Check has been forged

(D)  Check can’t be cash being illegal

Q85. Favorable balance of cash book implies that:

(A) Credit balance of cash book

(B) Debit balance of cash book

(C) Bank Overdraft

(D) Adjusted balance of cash book

Q86. Bank reconciliation statement is prepared by:

(A) Accountant of the Business

(B) Manager of the business

(C)  Controller of the bank

(D) Accountant of the bank

Q87. Which of the following error results in unadjusted cash book balance?

(A)  Outstanding Checks

(B) Unpresented Checks

(C) Deposit in transit

(D) Omission of bank charges


Q88. Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book:

(A)  Bank charges will be debited in cash book

(B)  Bank charges will be added to cash book balance

(C)  Bank charges will be credited in cash book

(D)  Bank charges need no adjustment in cash book


Q89. Unpresented checks also referred as:

(A) Uncollected checks

(B) Uncredited checks

(C)  Outstanding checks

(D)  Bounced checks

Financial Accounting
Q90. ________ are checks that are issued by the business but not yet presented to bank:

(A)  Uncollected checks

(B)  Uncredited checks

(C) Outstanding checks

(D) Bounced checks

Q91. Which of the following is non-profit organization:

(A) Sole Proprietorship

(B) Partnership

(C) Limited Company

(D) Trust

Q92. Commercial Accounting is based on:

(A) Single entry book keeping

(B) Double entry book keeping

(C) Both single and double entry book keeping

(D) Cash basis of book keeping

Q93. An Asset that is NOT physical in nature is called:

(A)  Intangible asset

(B) Liquid asset

(C) Current asset

(D)  Fixed asset



Q94. In cost of goods sold statement, the ‘cost of material consumed’ is equal to: 

(A) Opening  raw material stock +Purchases – Ending raw material stock

(B) Opening  raw material stock -Purchases + Ending raw material stock

(C)  Ending raw material stock + Opening stock – Purchases

(D)  Ending raw material stock + Opening stock + Purchases

Q95. What would be the value of total factory cost, if the cost of material consumed during the month is $6,000, labor cost incurred is $2,000 and the factory over head cost is $2,500:

(A)  $10,500

(B)  $6,000

(C)  $8,000

(D)  $45,00


Q96. In cost of goods sold statement the ‘cost of goods manufactured’ is equal to: 

(A) Total factory cost + Opening work in process – Ending work in process

(B)  Total factory cost + Opening work in process + Ending work in process

(C) Total factory cost – Opening work in process + Ending work in process

(D)  Ending work in process + total factory cost – Opening work in process


Q97. Which of the following entry is passed to record discount allowed in control account:

(A) Discount Allowed (Dr) and Debtor A/c Control (Cr)

(B) Discount Allowed (Dr) and Debtor A/c (Cr)

(C)  Debtor Control (Dr) and Discount Allowed (Cr)

(D) Debtor A/c (Dr) and Discount Allowed (Cr)


Q98. Which of the following entry will be recorded, if a cheque deposited is dishonored by bank:

(A) Bank Account (Dr.) and Debtor Account (Cr.)

(B) Debtor Account (Dr.) and Bank Account (Cr.)

(C)  Creditor Account (Dr.) and Bank Account (Cr.)

(D) Creditor Account (Dr.) and Bank Account (Cr.)


Q99. In which of the following auditor’s remuneration payable is shown:

(A)  In balance sheet under the head of Current Liability

(B) In Income statement under the head of Administrative Expense

(C) In the statement of changes in equity

(D) In cash flow statement under investing activities

Q100. Companies not disclosing an immanent bankruptcy would violate the:

(A) Business Entity Concept

(B) Going Concern Concept

(C) Monetary Unit Assumption

(D) Periodicity Assumption

Financial Accounting
Q101. The assumption that states that businesses can divide up their activities into artificial time periods:

(A) Business Entity Concept

(B) Going Concern Concept

(C) Monetary Unit Assumption

(D) Periodicity Assumption

Q102. In a manual book keeping system, transactions are first recorded in a_____

(A) Cash book

(B) Journal

(C) Ledger

(D) None of these

Q103. A journal_____ includes the date, accounts and amounts:

(A) Entry

(B) Number

(C) Voucher

(D) Book

Q104. A cheque payment that is recorded in the cash book but is not in the bank statement is called:

(A) An Unrecorded Cheque

(B) An unpresented cheque

(C) A direct debit

(D) A bounced cheque

Q105. Which document is issued by a supplier when a customer return goods:

(A) Credit note

(B) Debit note

(C) Invoice

(D) Statement

Q106. Which of the following facts regarding the statement of financial position would not be true?

(A) It is unnecessary to make any estimates or judgements when preparing a statement of financial position.

(B) The statement of financial position reveals how a business is funded.

(C) Intangible assets are often missing from the statement of financial position.

(D) The statement of financial position separately identifies long-term and short-term assets and liabilities.

Q107. For an asset owned for more than one year, the depreciation charge for the year, calculated using the reducing-balance basis at the rate of 35%, would be arrived at as follows:

(A) 35% x cost of the asset.

(B) 35% x (cost of the asset – accumulated depreciation).

(C) 35% x accumulated depreciation.

(D)  35% x (cost of the asset + accumulated depreciation).

Q108. Misha bought a machine for £39,000, which she expects to have a useful life of four years and a residual value of £4,000 at the end of that time. If depreciation is to be provided on the straight-line basis, the net book value after two years will be:

(A)  £17,500.

(B) £19,500.

(C) £21,500.

(D) £30,250.

Q109.  buys two motor vans costing £41,000 in total. They are depreciated on the reducing-balance basis at the rate of 40% per annum. Which of the following statements is true?

(A) The NBV of the vans after one year will be £24,600 and the depreciation charge for year 2 will be £16,400.

(B) The NBV of the vans after two years will be £14,760 and the depreciation charge for year 2 will be £9,840

(C) The NBV of the vans after one year will be £14,760 and the depreciation charge for year 2 will be £16,400.

(D) The NBV of the vans after two years will be £24,600 and the depreciation charge for year 2 will be £9,840

Q110. Matt bought a delivery van for £14,000 on 1 July 2016. It is expected to have a useful life of 4 years and a value at the end of that time of £3,000. If depreciation is to be provided at 30% on the reducing-balance basis, the depreciation charge for the year ended 30 June 2017 will be:

(A) £2,940.

(B) £1,260.

(C) £4,200.

(D) £2,310.

Q111. Which of the following interpretations of the prudence concept is not true:

(A) The prudence concept requires preparers of accounts to anticipate all income.

(B) The prudence concept requires preparers of accounts to anticipate all costs.

(C) The prudence concept requires preparers of accounts to take a cautious approach to accounts preparation.

(D) The prudence concept underpins the need for businesses to create a provision for doubtful debts.

Q112. Dilip’s account balances at the business year end show a figure for trade receivables of £103,100. Included in this figure is an amount of £6,500 owed by Reece, which will not be received. Dilip usually creates a provision for doubtful debts of 2% of trade receivables.

The figure for trade receivables on the statement of financial position at the year end should be:

(A) £94,538.

(B) £101,038.

(C) £107,408.

(D) £94,668.

Q113. If the trial balance at Laurie’s year end shows trade receivables of £19,900 and bad debts of £600 written off during the year, which of the following statements is true?

(A) The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,300 should be included on the statement of financial position.

(B) The statement of profit or loss should include no bad debt expense and trade receivables of £19,900 should be included on the statement of financial position.

(C) The statement of profit or loss should include no bad debt expense and trade receivables of £19,300 should be included on the statement of financial position.

(D) The statement of profit or loss should include a bad debt expense of £600 and trade receivables of £19,900 should be included on the statement of financial position.

Q114. If an asset cost £27,000 and the annual depreciation charge calculated using the straight-line method is £6,750 per annum, then depreciation is being charged at the rate of:

(A) 67.5%.

(B) 25%.

(C) 6.75%.

(D) 40%.

Q115. Eva has purchased a machine for £300,000. She will depreciate it either at 20% on the straight-line basis or at 30% on the reducing-balance basis.

Which method will lead to the highest combined profits in the first two years that the machine is owned?

(A) The straight-line basis will lead to the highest combined profits.

(B) The reducing-balance basis will lead to the highest combined profits.

(C) The choice of depreciation method does not affect the combined profit figures.

(D) Both the straight-line basis at 20% per annum and the reducing-balance basis at 30% per annum will lead to the same combined profit figure for the first two years.


Q116. The main object of providing depreciation is:

(A) To calculate true profit.

(B) To show true financial position.

(C) To reduce tax.

(D) To provide funds for replacement.

Q117. Depreciation arises because of:

(A) Fall in the market value of an asst.

(B) Physical wear and tear.

(C) Fall in the value of money.

(D) None of them.

Q118. Depreciation is a process of:

(A) Valuation

(B) Allocation

(C) Both valuation and allocation

(D) None of them.

Q119. Under the straight line method of providing depreciation it:

(A) Increase every year.

(B) Remain constant every year.

(C) Decreases every year

(D) None of them.

Q120. Under the diminishing balance method depreciation it:

(A) Increases every year.

(B) Decreases every year.

(C) Remain constant every year.

(D) None of them.

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