accounting MCQs – Page 10

Practise multiple-choice questions from accounting for competitive examinations and subject revision. Review each marked answer and report any item that may be outdated or unclear.

accounting Mcqs
181. The closing balance of a petty cash book is a / an___________?
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A. Liability

B. Gain

C. Loss

D. Assets
182. Building account is classified as _________ account?
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A. Capital

B. Cash

C. Real

D. Nominal

183. If debit balance is greater than creadit balance then the account blance will be__________?
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A. Cash balance

B. Credit balance

C. Debit balance

D. Debit and credit balance

184. Goods Return by the customer are termed as :
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A. Sales return

B. Purchase return

C. Customer return

D. Inventory return

185. The maintenance of accounts in a systematic way is called__________?
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A. Accounting

B. Reading

C. Auditing

D. Book Keeping
186. An increase in provision for bad debt will____________?
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A. Increase net income

B. Decrease liabilities

C. Increase liabilities

D. Decrease net income
187. Posting is the process of____________?
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A. All the three

B. Entering in the ledger the information contained in the ledger

C. Posting suitable person to a suitable job

D. Posting the letters in drop box

188. Modern system of book keeping is called______________?
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A. Italic system

B. Single entry system

C. Double entry system

D. American system

189. Bank reconciliation statement is a part of_________?
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A. None of these

B. Trial balance

C. Auditors report

D. Cash book
190. The excess of current assets over current liabilities is called:
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A. Circulating capital

B. Trading capital

C. Working Capital

D. Fixed capital

191. Net income equal to Revenues minus____________?
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A. Expenses

B. Gains

C. Capital expenditures

D. Depreciation

192. An Art of reading, classifying & Summarizing of accounts in a systematic way is called__________?
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A. Accountancy

B. Book Keeping

C. Accounting

D. Auditing

193. Amount paid to Masood posted to the credit side of his account would affect___________?
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A. Cash account

B. Masoods account

C. Cash account and Gagans account

D. None of these

194. Credit memo or credit note No. is entered in which of the following journal?
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A. General journal

B. Cash journal

C. Purchase journal

D. Sales return day book
195. The gross decrease in economic benefits for the business are what?
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A. Income or gain

B. Creditors

C. Expenses

D. Obligations

196. A sale of Rs. 50.000 to A was entered as a sale to B. This is an example of____________?
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A. Error of omission

B. Compensating error

C. Error of commission

D. Error of principle

197. Which of these documents is not required for Bank Reconciliation?
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A. Bank Statement

B. Trial Balance

C. Bank Pass Book

D. Bank column of Cash Book

198. If debit side of a bank account is greater than credit side it indicates which of the following?
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A. Balance overstatement

B. Bank overdraft

C. Cash at bank

D. Bank understatement

199. Which one of the following should be considered a revenue expenditure?
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A. Loss of 10,000 incurred in increasing the sitting accommodation of a hotel

B. Damage paid on account of breach of a contract to supply certain goods

C. 1000 paid for the execution of a new plant

D. Repair to machinery purchased, second hand.

200. Credit purchase of plant and machinery is recorded in which of the following journals?
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A. Purchase return journal

B. General journal

C. Cash journal

D. Purchase journal