accounting MCQs – Page 15

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 Review each marked answer and report any item that may be outdated or unclear.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
281. Standing orders are ________
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A. Entered in the petty cash balance

B. Debited in the cash book

C. Credited in the cash book

D. Entered in the bank statement

282. Gross Profit is equal to_________?
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A. Sales Cost of goods sold

B. Sales Closing Stock + Purchases

C. Opening Stock + Purchases Closing Stock

D. None of the above

283. A foreign bill of exchange is generally drawn up in___________?
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A. Triplicate

B. Single

C. Quadruplicate

D. Duplicate

284. Bank reconciliation statement is prepared by____________?
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A. Accountant of the business

B. Controller of the bank

C. Manager of the business

D. Accountant of the bank

285. Cash book records:______________?
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A. Cash receipts

B. Cash payments

C. Cash payments and cash receipts

D. Neither cash payments nor cash receipts

286. Tax deducted at source A/c appears in___________?
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A. Liability side

B. Profit & Loss A/c

C. Assets side

D. Debited to Capital A/c

287. An entry which is made on both sides of a cash book is called__________?
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A. Payment entry

B. Compound entry

C. Contra entry

D. Cash entry

288. A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?
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A. 18,560

B. 19,000

C. 18,750

D. 18,387
289. Bank charges amounting to $5000 was not entered in the cash book. Identify the correct adjustment in cash book?
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A. Bank charges will be added to cash book balance

B. Bank charges will be debited in cash book

C. Bank charges will be credited in cash book

D. Bank charges need no adjustment in cash book

290. Drawings by owner of business are generally recorded on which of the following side of a cash book?
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A. Payments

B. Incomes

C. Receipts

D. Expenditures

291. Which of these is not an operating income?
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A. Income from sale of trading goods

B. Interest on FDs

C. None

D. Bad debts recovered

292. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
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A. 5,80,000

B. 5,50,000

C. 5,00,000

D. 5,75,000

293. Postdated checks are considered as__________?
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A. Cash

B. Cash reserve

C. Accounts receivable

D. Bank balance

294. Arrangement of Balance Sheet in a logical order is known as __________?
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A. Make up of Balance Sheet

B. Dressing Balance Sheet

C. Formatting Balance Sheet

D. Marshalling Balance Sheet
295. A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book
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A. $3000 will be added to cash book balance

B. $3000 will be subtracted from cash book balance

C. $2000 will be deducted from cash book balance

D. $1000 will be added to cash book balance

296. Recent developments have made much of a companys inventory obsolete. This obsolete inventory should be?
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A. Shown in the Balance Sheet at its replacement cost

B. Shown in the Balance Sheet at cost, but classified as a non-current asset

C. Carried in the accounting records at cost until it is sold

D. Written down to zero or its scrap value
297. Accommodation bills are generally for?
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A. All the three

B. Genuine trade reasons

C. To help augment money supply

D. For mutual financial accommodation
298. Warehouse rent is a part of _________?
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A. prime cost.

B. distribution cost.

C. factory cost.

D. production cost

299. Riaz holds an average inventory of 36,000(CP) with an inventory turnover of 5 times. If the firm makes a gross profit of 25% on sales, find the total sales of the company.
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A. 2,00,000

B. 2,40,000

C. 1,80,000

D. 2,10,000

300. Which of the following are/is not a fixed asset?
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A. Stock

B. Vehicle

C. Fixed deposit in bank

D. Both A. and C. above