accounting MCQs – Page 20

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 Review each marked answer and report any item that may be outdated or unclear.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
381. Which of the following entries is correct in respect of reserve for discounts on accounts payable?
comments icon0

A. Debit Accounts Payable A/c and Credit P&L A/c

B. Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c

C. Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c

D. Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c

382. If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.
comments icon0

A. 8,000 units

B. 11,000 units

C. 10,000 units

D. 9,000 units

383. A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is
comments icon0

A. 840

B. 864

C. 820

D. 792

384. The closing balance of petty cash book is considered as_________?
comments icon0

A. Income

B. Asset

C. Liability

D. Expenses

385. Prepaid expenses are valued on the Balance Sheet at
comments icon0

A. Current cost

B. Cost to acquire less accumulated amortization

C. Cost less expired portion

D. Replacement cost

386. The most common imprest system is the ________ system?
comments icon0
A. Petty cash

B. Discount

C. Cash receipt

D. Cash book

387. Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?
comments icon0

A. Expenditures

B. Payments

C. Receipts

D. Incomes

388. Discount received is recorded on which of the following side of a cash book?
comments icon0
A. Payments

B. Receipts

C. Incomes

D. Expenditures

389. The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to?
comments icon0
A. Capital Reserve A/c

B. Asset A/c

C. General Reserve A/c

D. Profit & Loss A/c

390. Which of the following is not a financial statement?
comments icon0

A. Balance Sheet

B. Funds Flow Statement

C. Profit and Loss Account

D. Trial Balance
391. Which of the following is not depreciated?
comments icon0

A. Plant and Machinery

B. Land

C. Building

D. Office equipment

392. The creation of provision for doubtful debts given as an adjustment requires____________?
comments icon0

A. Debit Profit & Loss Account and add the provision to debtors

B. Credit Profit & Loss Account and deduct the provision from debtors

C. Credit Profit and Loss Account and add the provision to debtors

D. Debit Profit and Loss Account and deduct the provision from debtors
393. A simple or one column cash book usually has which of the following main columns?
comments icon0

A. Bank

B. Discount

C. Payments

D. Cash
394. _________is the cost of converting raw material into finished products?
comments icon0

A. Job order cost

B. Conversion cost

C. Explicit cost

D. Prime cost

395. Which of the following statements is correct about Depreciation?
comments icon0
A. Depreciation is a charge against profit

B. Depreciation is provided in the books only when there is profit

C. Depreciation is an appropriation of profit

D. Depreciation cannot be provided in case of loss in a financial year

396. Which of the following is generally not the party to a check?
comments icon0

A. Payee

B. Payer

C. Bank

D. Seller
397. From the following details what will be the partners commission? Net profit before charging partners commission 65,000. Partners commission 11% before charging such commission
comments icon0
A. 7150

B. 5431

C. 6441

D. 5876