Accounting MCQs

Question 1

Receipts and payment account shows . . . . . . . .

Accepted Answer

cash receipts and payments

Answer

income and expenditure

Answer

assets and liabilities

Answer

profit on sale

Question 2

The difference between gross dividend receivable and dividend received is debited to . . . . . . . .

Accepted Answer

tax deducted at source

Answer

interim dividend

Answer

net dividend

Answer

difference adjustment

Question 3

Which one of the following statements is correct?

Accepted Answer

Depreciation is not the process of valuation of asset-it is a process of allocation of cost of asset to the period of its economic life

Answer

If the cost of machinery is more than the book value, then depreciation need not be provided

Answer

When the plant and machinery and maintained in good condition, through repairs and renewals, depreciation need not be provided

Answer

In the absence of any legal provisions, if the auditor finds that provision made for depreciation is inadequate, then he is not required to refer to it in his report

Question 4

Financial statement in relation to a company includes:

Accepted Answer

All of these

Answer

Balance sheet

Answer

Statement of P&L

Answer

Cash flow statement

Question 5

In case of accommodation bills, if one party becomes insolvent then that party credits the short remittance to:

Accepted Answer

deficiency account

Answer

cash account

Answer

loan account

Answer

bill account

Question 6

Land was reported at its selling price which is substantially higher than its cost. The increase in value was included in the income statement, which accounting principle is violated?

Accepted Answer

Going concern concept

Answer

Cost principle

Answer

Entity concept

Answer

Conservatism

Question 7

Accounting principles represent:

Accepted Answer

a consensus at a particular time to the recording of accounting transactions

Answer

inviolable laws fixed by the legal boards

Answer

laws fixed by accounting experts

Answer

laws fixed by the respective governments

Question 8

Receipts and payment account record receipt and payments of . . . . . . . .

Accepted Answer

both revenue and capital nature

Answer

revenue nature only

Answer

capital nature only

Answer

capital receipts

Question 9

Which of the following errors is an error of omission?

Accepted Answer

The total of sales journal has not posted to the sales account

Answer

Sale of Rs. 800 was written in the purchase journal

Answer

Wages paid to Sohan have been debited to his account

Answer

The total of sales journal has posted to the sales account