accounting MCQs – Page 19

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 Review each marked answer and report any item that may be outdated or unclear.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
361. Short term Assets expected to be converted into cash within 1 year or less than?
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A. Current Assets& current liabilities

B. All of the above

C. Current Assets

D. Fixed Assets

362. Which of the following is not an intangible asset?
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A. Franchise

B. Accounts Receivable

C. Secret Profit

D. Trade mark

363. Outstanding salaries is shown as___________?
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A. An Asset in the Balance Sheet

B. A Liability

C. By adjusting it in the P & L A/c

D. Both B. and C. above
364. The process of paying off debt over time in regular installment of interest & principal sufficient to repay the loan in fully by its maturity date.
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A. Liability

B. Securitization

C. Amortization

D. Loan Payment

365. Audit fess is a part of__________.
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A. works on cost.

B. selling overhead.

C. distribution overhead.

D. administration overhead
366. Closing entries are generally passed:
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A. During the course of accounting period any time

B. After certification of accounts

C. At the time of opening new books of account

D. At the time of closing the accounts
367. Sundry debtors as per Trial Balance is 43,000 which includes 2,200 due from ?H in respect of goods sent to him on approval basis, the cost price of which is 1,800. Rectification would involve:
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A. Adding 2,200 to closing stock

B. Deducting 1,800 from closing stock and deducting 2,200 each from debtors and sales

C. Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales

D. Deducting 1,800 from debtors

368. A credit balance in cash book indicates?
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A. Bank overdraft

B. Bank balance

C. Bank underdraft

D. Cash at bank

369. Negotiable Instrument Act was enacted in_________?
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A. 2001

B. 1871

C. 1881

D. 1981

370. Property, Plant and Equipment are conventionally presented in the Balance Sheet at _________?
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A. Replacement cost Accumulated Depreciation

B. Historical cost Depreciation portion thereof

C. Historical cost Salvage Value

D. Original cost adjusted for general price-level changes

371. How many parties are generally found in a Bill of Exchange?
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A. 3

B. 2

C. 5

D. 4

372. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be
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A. 24.00

B. 35

C. 38.25

D. 37.5

373. Net sales equals, sales minus:
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A. cost of goods sold

B. Return inwards

C. carriage on sales

D. Return outwords

374. In bank reconciliation statement the amount of outstanding checks is added to ________ balance of cash book.
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A. Unadjusted

B. Adjusted

C. Overstated

D. Understated

375. Which of the following is an external cause of depreciation?
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A. Routine repair and maintenance

B. Obsolescence

C. Misuse

D. Wear and tear

376. If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.
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A. 1.5

B. 5.29

C. 0.65

D. 0.35

377. Bad debts recovered account will be transferred to______________?
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A. Provision for Doubtful Debt Account

B. Debtors Account

C. Profit and Loss Account

D. Either (b )or C. above
378. Which of the following equations is correct?
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A. Gross Profit Opening Stock + Direct expenses + Purchases +Closing stock = Sales

B. Gross Profit+ Sales+ Direct expenses+ Purchases- Closing stock = Opening Stock

C. Gross Profit+ Sales+ Direct expenses+ Purchases+ Closing stock = Opening stock

D. Gross Profit + Opening Stock + Direct expenses + Purchases- Closing stock = Sales
379. Which of the following form of business organization is least regulated?
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A. General Partnership

B. Corporation

C. Limited Partnership

D. Sole-proprietorship
380. Which of the following are/is a current asset?
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A. Stock

B. Prepaid insurance

C. Sundry Debtors

D. All of A. B. and C. above