accounting MCQs – Page 14

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 Review each marked answer and report any item that may be outdated or unclear.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

261. Which of the following statements is false ? select the false from below options
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A. A person who owes to the business is called Debtor

B. Balance Sheet discloses financial position of the business

C. Assets are to be shown in the Balance Sheet at the realizable value

D. Decrease in the value of the asset could decrease the value of a liability

262. One of the most important tools in cost planning is__________?
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A. Direct cost

B. Cost Sheet

C. Marginal Costing.

D. Budget

263. The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to
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A. Sending the bill to bank for collection

B. Discounting of the bill with the bank

C. Remitting or receiving the amount

D. Payment of the bill on due date

264. Depreciation is calculated on the____________?
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A. Cost or market values whichever is less

B. Cost price of asset

C. Market price

D. Cost+ Transport+ Installation expenses

265. Depreciation Account appearing in the Trial Balance is shown in:
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A. Trading A/c

B. Deducted from the concerned assets A/c

C. Shown on the liability side

D. Profit and Loss A/c

266. ____________is also known as Appraisal system of depreciation?
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A. Annuity system

B. Survey system

C. Insurance

D. Inventory system

267. ___________ are checks that are issued by the business but not yet presented to bank
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A. Outstanding checks

B. Uncollected checks

C. Bounced checks

D. Uncredited checks

268. Non Trading institution prepare:______________?
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A. Manufacturing account

B. Income and Expenditure Account

C. Cost of good sold

D. profit and loss account

269. Average Accounting Return is a measure of accounting profit relative to:
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A. Cost

B. Book value

C. Intrinsic value

D. Market value

270. Petty cash fund is supposed to be replenished?
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A. Every year

B. At the end of every accounting period

C. Every day

D. Every half year

271. A Bill of Exchange is drawn on 1st April, 2018 payable after 3 months. The due date of the bill is?
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A. 4th July,2018

B. 1st July,2018

C. 30th June,2018

D. 4th August,2018

272. The Profit and Loss Account shows the:
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A. Financial results of the concern for a period

B. Cost of goods sold during the period

C. Financial position of the concern on a particular date

D. Financial results of the concern on a particular date

273. Closing stock appearing in the Trial Balance is shown in:
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A. Balance Sheet only

B. Trading A/c only

C. Profit and Loss A/c

D. Trading A/c and Balance Sheet

274. Which of the following will not appear in Profit and Loss Account of a business?
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A. Reserve for discount on Sundry Creditors

B. Bad debts

C. Accrued expenses

D. Drawings

275. The entry for creating a Provision for bad debts is_____________?
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A. Debit Debtors A/c and credit Provision for Bad Debts A/c

B. Debit Provision for Bad Debts A/c and credit Debtors A/c

C. Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.

D. Debit Provision for Bad Debts A/c and credit Profit & Loss A/c

276. When bill discounted with the bank is dishonored?
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A. Bills Receivable Account is credited in the books of drawer

B. Bank Account is debited in the books of drawer

C. Bills Payable Account is debited in the books of drawer

D. Acceptors Account is debited in the books of drawer

277. Goods in stock worth 800 are destroyed by fire and the Insurance Co. is accepted the claim for 600. Adjustment would involve
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A. Debit of 800 to Trading Account and credit of 600 and 200 to insurance company and

B. Credit insurance company for 600

C. fit and Loss Account respectively

D. Deduct the 800 from closing stock in the Trading Account

E. dit of 800 to Trading Account</strong>

F. Debit of 600 and 200 to insurance company and Profit and Loss Account respectively and

278. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?
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A. Rs. 25,000

B. Rs. 8,000

C. Rs. 17,000

D. Rs. 33,000

279. Tax deducted at source appears in the Balance Sheet
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A. On the liabilities side under provisions

B. On the assets side under loans and advances

C. On the liabilities side under current liabilities

D. On the assets side under current assets

280. An average cost is also known as________?
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A. Fixed cost

B. Total cost

C. Variable cost

D. Unit cost

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