Accounting MCQs

Question 1

Errors of carry forward from one year to another year affect . . . . . . . .

Accepted Answer

personal account

Answer

real account

Answer

nominal account

Answer

both personal and real account

Question 2

What does GAAP represents?

Accepted Answer

Generally Accepted Accounting Principles

Answer

Generally Accepted Audit Procedure

Answer

General Agreement on Audit Principles

Answer

General Agreement on Accounting Principles

Question 3

Which one of the following error will affect the agreement of the trial balance?

Accepted Answer

Sale returns of Rs. 1000 correctly entered in the sales returns book but posted to the debit of Sundar

Answer

A sale of Rs. 20 to Ram entered in the sales book as Rs. 200

Answer

Purchase of Rs. 500 credited to Ram instead of Shyam

Answer

Cash sale of furniture credited to sales account

Question 4

Rs. 500 spent on servicing office typewriter should be debited to . . . . . . . .

Accepted Answer

Repairs account

Answer

Expenses account

Answer

Typewriter account

Answer

Services account

Question 5

Select the correct amount of purchases, given on the following information: Cost of goods sold - Rs. 1,20,000; Carriage inwards - Rs. 1,890; Opening stock - Rs. 43,640; Closing stock - Rs. 38,500; Purchase returns - Rs. 2,150; Sales - Rs. 2,82,650

Accepted Answer

None of these

Answer

Rs. 1,15,120

Answer

Rs. 62,650

Answer

Rs. 1,10,420

Question 6

Contingent liability appears as a footnote in the balance sheet. This is in accordance with the accounting principle of . . . . . . . .

Accepted Answer

Disclosure

Answer

Consistency

Answer

Materiality

Answer

Conservatism

Question 7

Cost of goods sold is Rs. 1,00,000 rate of gross profit on sales is 20%. What is the amount of sales?

Accepted Answer

Rs. 1,25,000

Answer

Rs. 1,20,000

Answer

Rs. 80,000

Answer

None of these

Question 8

Which one of the following errors is an error of principle?

Accepted Answer

Debiting repairs account instead of furniture account

Answer

Sale of Rs. 200 entered in the books as Rs. 2000

Answer

Cash sale of Rs. 500 wrongly entered in sales book

Answer

Purchase transaction entered in purchases return book

Question 9

Concept of Realisation implies:

Accepted Answer

When goods are delivered to customer

Answer

When cash is received from debtors

Answer

When order is received

Answer

None of these