Accounting MCQs
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Question 3088hard
Assertion (A): The matching concept requires that costs should be recognised as expenses in the period in which revenue is realised
Reason (R): There may not be a matching between expenditure and expense over a short period
In the context given above, which one of the following is correct?
Reason (R): There may not be a matching between expenditure and expense over a short period
In the context given above, which one of the following is correct?
Question 3089hard
On 31st December 2004, the assets and liabilities of a firm were Rs. 40,000 and Rs. 30,000 respectively. The firm was dissolved and a sum of 60 paisa per rupee was paid to the creditors. Profit/loss on realisation-
Question 3090hard
Given:
The amount of debtors will be:
| Gross Profit | Rs. 60,000 |
| Gross Profit rate | 20% |
| Debtors velocity | 2 Month |
The amount of debtors will be:
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Question 3091hard
Match List-I with List-II and select the correct answer:
| List-I | List-II |
| a. Credit purchase of an asset | 1. Purchase Return |
| b. Cash sales of an asset | 2. Sales Return |
| c. Return inward | 3. Cash Book |
| d. Return outward | 4. Journal Proper |
Question 3092hard
Given,
If bank loan is increased by Rs. 20,000. the current ratio will decrease by
| Cash | Rs. 10,000 |
| Creditors | Rs. 12,000 |
| Debitors | Rs. 20,000 |
| Bills payable | Rs. 8,000 |
| Stock | Rs. 30,000 |
| Bank loan | Rs. 10,000 |
If bank loan is increased by Rs. 20,000. the current ratio will decrease by
Question 3093hard
On 1st January, 1996 the stock was valued at Rs. 7,000. During January the purchases of the stock amounted to Rs. 23,000 and the cost of sales during the same period amounted to Rs. 21,000. What had been the value of the stock on 31st January, 1996:
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Question 3094hard
Reconstruction of a company takes place when
1. the company is undercapitalised.
2. company has incurred heavy losses which must be written off.
3. the company is overcapitalised.
Select the correct answer:
1. the company is undercapitalised.
2. company has incurred heavy losses which must be written off.
3. the company is overcapitalised.
Select the correct answer:
Question 3095hard
With reference to Provisions and Reserve, which of the following statement is/are correct?
1. Provision is a charge to profit and loss account
2. Reserve is created for a specific loss
Select the correct answer:
1. Provision is a charge to profit and loss account
2. Reserve is created for a specific loss
Select the correct answer:
Question 3096hard
The following is the position of current assets and current liabilities:
Profit made during the year Rs. 5,00,000 after considering the following items:
The cash from operations is:
| 31st December, 94 | 31st December, 95 | |
| Debtors | Rs. 30,000 | Rs. 24,000 |
| Creditors | Rs. 20,000 | Rs. 30,000 |
| Stock | Rs. 16,000 | Rs. 20,000 |
| Prepaid expenses | Rs. 8,000 | Rs. 12,000 |
Profit made during the year Rs. 5,00,000 after considering the following items:
| Depreciation on plant | Rs. 20,000 |
| Preliminary expenses written off | Rs. 10,000 |
| Transfer to general reserve | Rs. 14,000 |
| Profit on sale of land | Rs. 6,000 |
The cash from operations is: