Accounting MCQs

Consider the following statements:
A credit purchase during the accounting year which was not recorded in the books of account but included in the closing stock is to be:
I. added to the credit purchases account
II. added to the creditors account
III. subtracted from the closing stock
IV. added to the opening stock
Which of the statements given above is/are correct?

Match the following.

List-I	List-II
a. Buy-back of equity shares must be authorised by	1. Not allowed
b. Buy-back of partly paid equity shares	2. Governs buy back of shares
c. Redemption of preference shares	3. Article of Association
d. Section 68 of the Companies Act	4. Only fully paid

A manufacturing company spent the following amounts on the import and installation of machine:
1. Rs. 50,000 : Price of the machine
2. Rs. 5,000 : Freight
3. Rs. 1,050 : Insurance premium
4. Rs. 6,000 : Replacement of a part damaged intransit, not covered under the insurance policy
Based on the above data, capital expenditure would be:

Consider the following statements.
1. Inventory includes raw material, finished goods and goods in process.
2. Inventory is the part of working capital.
3. Inventory includes goods likely to be purchased in the coming months.
Which of the statements given above are correct?

Net asset of a business on 1^st January and 31^st January are Rs. 39,000 and Rs. 38,000 respectively. Additional capital and drawing made by owner during the month is Rs. 2,000 and Rs. 6,000. What is net income earned during the month of January?

Match the following.

List-I	List-II
a. Materiality concept	1. The same accounting method used by a firm from one period to another
b. Going concern concept	2. An inappropriate assumption of a firm being bankrupT
c. Historical cost concept	3. A normal basis used for accounting assets
d. Consistency concept	4. Relates to the importance of an item or event

Match List-I with List-II and select the correct answer:

List-I	List-II
a. VED Analysis	1. Sources and uses of funds
b. Ratio Analysis	2. Inventory control
c. Funds Flow Analysis	3. Analysis & Interpretation of Financial Statement
d. Income & Expenditure Analysis	4. Non-Profit organization

Match List-I (Item of expenditure/receipt) with List-II (Nature of expenditure/receipt) and select the correct answer using the options given below the lists:

List-I	List-II
a. Carriage charges on a new machine purchased for factory	1. Revenue receipt
b. Legal expenses incurred in defending a case of violation of a provision of Factories Act	2. Revenue expenditure
c. Grant-in-aid received from the Government for the construction of a building	3. Deferred revenue expenditure
d. Amount received for a part of the office building sublet	4. Capital expenditure
	5. Capital receipt

Given
Opening stock - Rs. 5,000
Closing stock - Rs. 7,000
Purchases - Rs. 10,000
Manufacturing expenses - Rs. 20,000
Loss of meterials by fire - Rs. 1,000
Manufacturing cost will be: