Branch Accounting(Advance Accountancy ) Questions and Answers

Question 1.

Branch not keeping the full system of accounting is also known as

  1.    Foreign branch
  2.    Dependent branch
  3.    Independent branch
  4.    None of the above
Explanation:-
Answer: Option B. -> Dependent branch


Question 2. Branch keeping the full system of accounting is also known as
  1.    Independent branch
  2.    Dependent branch
  3.    Foreign branch
  4.    None of the above
Explanation:-
Answer: Option A. -> Independent branch


Question 3. Stock and debtor system is popularly known as
  1.    Foreign branch methods
  2.    Analytical methods
  3.    Synthetic methods
  4.    Analytical methods
Explanation:-
Answer: Option D. -> Analytical methods


Question 4. Branch debtor system is otherwise known as
  1.    Synthetic methods
  2.    Stock and debtor methods
  3.    Foreign branch methods
  4.    Analytical methods
Explanation:-
Answer: Option A. -> Synthetic methods


Question 5. Branch account is prepared to ascertain
  1.    Profit and loss of the branch
  2.    Financial statement of the business
  3.    Assets and liability of the head office
  4.    None of the above
Explanation:-
Answer: Option A. -> Profit and loss of the branch


Question 6. The system in which profit and loss made by the branch is determined by preparing branch trading and profit & loss account at cost price is
  1.    Synthetic methods
  2.    Stock and debtor methods
  3.    Final account methods
  4.    Analytical methods
Explanation:-
Answer: Option C. -> Final account methods


Question 7. The account prepaired for the ascertaining  the amount of gross profit earned by the branch under stock and debtor system is
  1.    Branch adjustment account
  2.    Branch stock account
  3.    Goods sent to branch account
  4.    Branch debtor account
Explanation:-
Answer: Option A. -> Branch adjustment account


Question 8. The account prepared to adjust the loading included in the value of opening and closing stock at branch is termed as
  1.    Branchadjustmentaccount
  2.    Stock reserve and surplus account
  3.    Goods sent to branch account
  4.    Branch debtor account
Explanation:-
Answer: Option B. -> Stock reserve and surplus account


Question 9. The account prepared in the same way as that when goods are invoice at cost, except that all entries are made at invoice price is termed as
  1.    Branch adjustment account
  2.    Branch stock account
  3.    Goods sent to branch account
  4.    Branch debtor account
Explanation:-
Answer: Option B. -> Branch stock account


Question 10. Which methods is adopted generally in those branches which are small in size
  1.    Debtors method
  2.    Stock and debtor methods
  3.    Foreign branch methods
  4.    Analytical methods
Explanation:-
Answer: Option A. -> Debtors method


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