Accounting MCQs

Question 1

Preparation of trial balance helps in the deduction of . . . . . . . .

Accepted Answer

clerical errors

Answer

error of principle

Answer

compensating errors

Answer

errors of whole omission

Question 2

Bills receivable account is:

Accepted Answer

an asset Account

Answer

an expense Account

Answer

a liability Account

Answer

a revenue Account

Question 3

Which one of the following is treated as revenue expenditure?

Accepted Answer

Cost incurred for a new exit as required under the local bodies by laws

Answer

Interest paid on loan during the construction of works

Answer

Cost of pulling down an old building

Answer

A dealer in purchasing sewing machines and spent some money on the repairs

Question 4

Banks are required to transfer . . . . . . . . of their profits to statutory reserve.

Accepted Answer

25%

Answer

20%

Answer

10%

Answer

None of these

Question 5

While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in . . . . . . . .

Accepted Answer

reserves

Answer

share capital

Answer

assets

Answer

liabilities

Question 6

A withdrawal of cash from business by the proprietor of the firm should be credited to:

Accepted Answer

Cash Account

Answer

Capital Account

Answer

Drawing Account

Answer

Proprietor's Account

Question 7

Which one of the following is an example of personal account?

Accepted Answer

Capital account

Answer

Building account

Answer

Cash account

Answer

Investment account

Question 8

The term banking is defined in section . . . . . . . .

Accepted Answer

Section 5 of Banking Regulation Act

Answer

Section 4

Answer

Section 7

Answer

None of these

Question 9

Which of the following represents term deposit?

Accepted Answer

Fixed deposit

Answer

Savings deposit

Answer

Current deposit

Answer

None of these