Accounting MCQs

Question 1

Realization loss is transferred to . . . . . . . .

Accepted Answer

equity shareholders a/c

Answer

preference shareholders a/c

Answer

creditors a/c

Answer

None of these

Question 2

A cartel is a combination firms

Accepted Answer

Which are functioning in a particular industry

Answer

Whose combined assets are worth more than 90% of total assets of the industry

Answer

Who control major chunk of the market

Answer

Whose combined profits are enormous

Question 3

Which preparing accounts from incomplete records, the amount of credit sales is determined by?

Accepted Answer

preparing total debtors account

Answer

preparing total creditors account

Answer

ascertaining the balance in trading account other than closing stock

Answer

ascertaining the balance in debtors account and cash book

Question 4

When the proposed dividend exceeds 20% of paid up capital, percentage of profit transferred to general reserve is . . . . . . . .

Accepted Answer

10%

Answer

2.5%

Answer

5%

Answer

7.5%

Question 5

Advance payment of tax is a . . . . . . . .

Accepted Answer

prepaid expense

Answer

general reserve

Answer

interim dividend

Answer

provision for taxation

Question 6

Which of the following is not a source of redemption of preference shares?

Accepted Answer

realization of asset

Answer

divisible profit

Answer

securities premium a/c

Answer

proceeds of fresh issue

Question 7

A sale of goods to Vidhya for cash should be debited to . . . . . . . .

Accepted Answer

Cash account

Answer

Vidhya's account

Answer

Sale of goods account

Answer

Purchases account

Question 8

Which one of the following accounting standards is not mandatory in India?

Accepted Answer

Non-monetary assets and fixed assets

Answer

Fixed assets accounting and revenue recognition

Answer

Inventory and depreciation accounting

Answer

Monetary assets and depreciation accounting

Question 9

The amount set aside to meet the loss of bad debt is . . . . . . . .

Accepted Answer

provision

Answer

liability

Answer

reserve

Answer

contingent liability