Accounting MCQs

Question 1

Which of the following sets of expense are the direct expense of business?

Accepted Answer

Both 'a' and 'c'

Answer

Wages, Carriage Inward, Octroi

Answer

Postage, Wages, Carriage Inward

Answer

Purchases, Wages, Coal Expenses

Question 2

Suspense account given in the trial balance will be entered in the

Accepted Answer

Balance sheet

Answer

Manufacturing account

Answer

Trading account

Answer

Profit and loss account

Question 3

The accounting equation is based on

Accepted Answer

Dual aspect

Answer

Business entity

Answer

Going concern concept

Answer

All of the above

Question 4

Different accounting policies can be adopted in the following area(s)

Accepted Answer

All of the above

Answer

Valuation of inventories

Answer

Valuation of Investments

Answer

Calculation of depreciation

Question 5

Normally the following accounts are balanced

Accepted Answer

Personal account and Real account

Answer

Real account and Nominal account

Answer

Only Nominal account

Answer

All accounts

Question 6

Opening and closing inventories are recorded in

Accepted Answer

Journal proper

Answer

Purchase book

Answer

Sales book

Answer

Bill receivable book

Question 7

Which of the following instruments is not a negotiable instrument?

Accepted Answer

Crossed cheque

Answer

Bearer cheque

Answer

Promissory note

Answer

Bills of exchange

Question 8

The installation expenses for a new machinery will be debited to

Accepted Answer

Machinery A/c

Answer

Cash A/c

Answer

Profit & Loss A/c

Answer

Installation expenses A/c

Question 9

When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called

Accepted Answer

Contingent liability

Answer

Provision

Answer

Secured loan

Answer

None of the above