accounting MCQs – Page 16

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 Review each marked answer and report any item that may be outdated or unclear.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

301. Which of the following relationships is/are false?
0

A. Net Profit = Gross Profit Administration and Other expenses

B. Net Profit = Gross Profit + Administration expenses and Other expenses

C. Opening Stock + Purchases Closing Stock = Cost of Sales

D. Both B. and C. above

302. Which of the following is a current liability?
0

A. Discount on issue of shares

B. Trademark

C. Outstanding Salaries

D. Prepaid expenses

303. Cash discount is allowed on _______ repayment of debt.
0

A. None of them

B. Lump sum

C. Actual

D. Prompt

304. Depreciation fund method is also known as__________?
0

A. Annuity Method

B. None of these

C. Sum of Year Digits Method

D. Sinking Fund Method

305. A club paid subscription fees of `1,400. Out of which ` 200 is prepaid. In such case
0

A. P&L A/C is debited with 1,400

B. P&L A/C is debited with 1,200

C. 200 is shown as current asset

D. Both B. and C. above

306. A discount of $2000 was given to a supplier on his prompt repayment of debt but the cashier entered the gross amount in cash book. What should be the adjustment in cash to work out the correct balance of cash book?
0

A. $4000 will be credited in the cash book

B. $4000 will be debited in cash book

C. $2000 will be credited in cash book

D. $2000 will be debited in cash book

307. Cost of goods sold excludes___________?
0

A. Carriage inward

B. Wages & Salary

C. Postage & Stamps

D. Opening Stock

308. Which of the following are current assets of a business?
0

A. Stock

B. . Debtors

C. ="color: #003f1a;">i. Income received in advance

D. Pre-paid expenses

E. Accrued income</strong></span>

309. Bank reconciliation statement is the comparison of a bank statement (sent by bank) with the _________ (prepared by business).
0

A. Financial statements

B. Cash receipt journal

C. Cash book

D. Cash payment journal

310. The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?
0

A. Commercial cost

B. Direct cost

C. Conversion cost

D. Variable cost

311. Which of the following is not classified as inventory in the financial statements?
0

A. Stores and spares

B. Work-in-process

C. Advance payments made to suppliers for raw materials

D. Finished goods

312. The Balance Sheet gives information regarding the____________?
0

A. Profit earning capacity for a particular period

B. Results of operations for a particular period

C. Financial position as on a particular date

D. Financial position during a particular period

313. From the following details what will be the partners commission? Net profit before charging partners commission 65,000. Partners commission @ 11% after charging such commission.
0

A. 5431

B. 9876

C. 6441

D. 7654

314. X draws a Bill of Exchange on Y for 10,000 on 1-1-2013 for 3 months. The due date of the bill will be_________?
0

A. 4-4-2013

B. 3/4/2013

C. 31-3-2013

D. 1/4/2013

315. The adjustment to be made for prepaid expenses is____________?
0

A. Add prepaid expenses to respective expenses and show it as an asset

B. Deduct prepaid expenses from respective expenses and show it as a liability

C. Deduct prepaid expenses from respective expenses and show it as an asset

D. Add prepaid expenses to respective expenses and show it as a liability

316. Bank sent debit advice of $500 to company being interest on overdraft. It wasnt entered in cash book. Identify the correct adjustment in cash book.
0

A. $1000 will be subtracted

B. Non-adjustable

C. $500 will be credited

D. $500 will be debited

317. Balance as per cash book(adjusted.=$1000, Unpresented checks=$2000, Uncredited checks=$500, Deposit in transit=$500. Compute the balance as per bank statement.
0

A. $2000

B. $3,000

C. $2,500

D. Zero

318. Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.
0

A. 60,000

B. 55,000

C. 50,000

D. 65,000

319. Direct cost incurred can be identified with_______________?
0

A. Each unit of output

B. Each Executive

C. Each Month

D. Each Department

320. Which of the following bases is not appropriate for apportionment of Transport departments cost ?
0

A. Truck Mileage

B. Truck value

C. Crane hours

D. Crane value

Previous Next

Showing 301 to 320 of 397 mcqs