McqMate
1. |
The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as |
A. | Current assets |
B. | Fixed assets |
C. | Intangible assets |
D. | Investments |
Answer» A. Current assets |
2. |
According to which principle the same accounting methods should be used each year: |
A. | Prudence |
B. | Full disclosure |
C. | Materiality |
D. | Consisten cy |
Answer» D. Consisten cy |
3. |
The elements of the accounting equation are |
A. | Assets, Liabilities,Capital |
B. | Liabilities,Capital |
C. | Liabilities |
D. | Capital |
Answer» A. Assets, Liabilities,Capital |
4. |
Arun is a Book-seller, which item will be goods for his business ? |
A. | Purchase of Computer |
B. | Purchase of Fan |
C. | Purchase of Furniture |
D. | Purchase of Stationery |
Answer» D. Purchase of Stationery |
5. |
The expenses due but not paid is known as - |
A. | Prepaid Expenses |
B. | Debtors |
C. | Outstanding Expense |
D. | Bills Receivable |
Answer» C. Outstanding Expense |
6. |
Which is correct.
|
A. | Only I |
B. | Only II and III |
C. | ALL I,II and III |
D. | Only I and II |
Answer» A. Only I |
7. |
Goods destroyed by fire should be credited to |
A. | Puchases A/c |
B. | Sales A/c |
C. | Loss by fire A/c |
D. | Insurance A/c |
Answer» A. Puchases A/c |
8. |
In the books of account if a transaction is completely deleted, will it affect the trial balance? |
A. | No |
B. | Yes |
C. | A transaction cannot be omitted |
D. | May be |
Answer» A. No |
9. |
The respective normal account balances of Sales, Sales Returns , and Discounts allowed are? |
A. | Credit, Credit, Credit |
B. | Debit, credit, debit |
C. | Credit, Debit, Debit |
D. | Credit, Debit, Credit |
Answer» C. Credit, Debit, Debit |
10. |
Trial balance is not a conclusive proof of accuracy due to which errors.
|
A. | All I,II,III and IV |
B. | Only I,II and III |
C. | Only I,II and IV |
D. | Only II and III |
Answer» A. All I,II,III and IV |
11. |
Which of the following is not the external user of accounting information? |
A. | Government |
B. | Shareholders |
C. | Tax Authorities |
D. | Financial institutions |
Answer» B. Shareholders |
12. |
refers to the order in which the various assets and liabilities are shown in the Balance Sheet. |
A. | Grouping |
B. | Order of permanence |
C. | Marshalling |
D. | Order of liquidity |
Answer» C. Marshalling |
13. |
If closing stock is mentioned in trial balance,Where is it shown in Final Accounts? |
A. | Credit side of Trading A/c |
B. | Asset side of Balance Sheet |
C. | Both A and B |
D. | Not shown anywhere |
Answer» B. Asset side of Balance Sheet |
14. |
Which one is false. I)Capital Expenditure is non recurring in nature and shown in P&L account. II)Revenue expenditure is incurred to conduct day to day activities |
A. | Both I and II |
B. | Only I |
C. | Only II |
D. | None is false |
Answer» B. Only I |
15. |
Where do we show Provision of bad debts in final accounts if given in adjustments?
|
A. | I and III |
B. | II and IV |
C. | II and III |
D. | I and IV |
Answer» A. I and III |
16. |
Which is true. I)Fixed installation method is recognised by income tax department. II)The amount of depreciation in WDV method remains same. |
A. | Both I and II |
B. | None is true |
C. | Only II |
D. | Only I |
Answer» B. None is true |
17. |
Cost of machine=1,90,000 Installation=10,000 Scrap=50,000 Life=6 yrs Calculate depreciation as per SLM method |
A. | 25,000 |
B. | 23,333 |
C. | 33,333 |
D. | 21,666 |
Answer» A. 25,000 |
18. |
Machinery purchased on 1 Oct,2016 for 40,000.This machinery was sold on Dec 2017.Calculate the total depreciation charged on machinery till date if co charges 10% as per WDV method if accounts are closed on 31st March every year. |
A. | 6700 |
B. | 8000 |
C. | 5000 |
D. | 4850 |
Answer» D. 4850 |
19. |
1 oct Opening balance=400 units @Rs 20 each, 3 Oct:Purchase=300 units @Rs 10 ,5 Oct Sales=500 units.What will be total Sales value(in Rs) as per FIFO Method? |
A. | Rs 9000 |
B. | Rs 15000 |
C. | Rs 10000 |
D. | Rs 7500 |
Answer» A. Rs 9000 |
20. |
2 oct Opening balance=200 units @Rs 15 each, 4 Oct:Purchase=500 units @Rs 10 ,5 Oct Sales=600 units.What will be Closing Inventory value (in Rs) as per LIFO Method? |
A. | Rs 1000 |
B. | Rs 500 |
C. | Rs 8000 |
D. | Rs 1500 |
Answer» D. Rs 1500 |
21. |
Business enterprise is separate from its owner according to concept. |
A. | Money measurement |
B. | Cost |
C. | business entity concept |
D. | Dual aspect |
Answer» C. business entity concept |
22. |
When proprietor withdrew cash from business for personal use , it is known as - |
A. | Drawings |
B. | Investment |
C. | Furniture |
D. | Bills Receivable |
Answer» A. Drawings |
23. |
In trial balance, which accounts with is/are recorded at the credit side?
|
A. | Only I and II |
B. | All of these |
C. | Only I,II and IV |
D. | Only I and IV |
Answer» D. Only I and IV |
24. |
When Salary is paid by cheque, which account is credited. |
A. | Cash A/c |
B. | Bank A/c |
C. | Salary A/c |
D. | Personal A/c |
Answer» B. Bank A/c |
25. |
The process of transferring the debit and credit items from a journal to their respective account in the ledger is termed as? |
A. | Balancing |
B. | Posting |
C. | Arithmetic |
D. | Entry |
Answer» B. Posting |
26. |
What are the two statements prepared for summarising the transactions? I)Balance Sheet II)Journal III)P&L IV)Cash Book |
A. | Only I and II |
B. | Only I,II and III |
C. | Only I,II and IV |
D. | Only I and III |
Answer» D. Only I and III |
27. |
Where do we show Gas and Fuel in final accounts? |
A. | Trading A/c |
B. | P&L Account |
C. | Balance Sheet |
D. | Not shown anywhere |
Answer» A. Trading A/c |
28. |
What are the causes of depreciation? |
A. | Wear and Tear |
B. | Obsolescence |
C. | Expiration of legal rights |
D. | All of the above |
Answer» D. All of the above |
29. |
What is the formula for calculating depreciation in SLM Method? |
A. | Cost+Scrap/No of Yrs |
B. | Scrap-Cost/No of yrs |
C. | Cost - Scrap/Useful Life |
D. | None of these |
Answer» C. Cost - Scrap/Useful Life |
30. |
4 oct Opening balance=500 units @Rs 20 each, 5 Oct:Purchase=1000 units @Rs 15 ,6 Oct Sales=500 units.What will be rate at which the sales unit will be valued as per weighted avg method? |
A. | Rs20 |
B. | Rs 15 |
C. | Rs 16.66 |
D. | 17.5 |
Answer» C. Rs 16.66 |
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