Accounting MCQs

A company may resort to "window dressing" by manipulating the data such as:
I. inventory valuation
II. omission of liability for goods purchased
III. treating a short-term liability long-term debt
IV. recording in advance cash receipts applicable to next accounting period

On 1^st June 2018, a partner introduced an additional capital Rs. 50,000 in the firm. In the absence of a part nership deed, on 31^st March 2019, he will receive an interest of

Match List-I with List-II and select the correct answer using the options given below the lists:

List-I (Accounting concept)	List-II (Principle involved)
a. Consistency	1. Losses are anticipated and accounted for in advance but profits are not accounted for until realised.
b. Comparability	2. All the relevant financial informations should be summarised and presented in the accounting statements.
c. Conservatism	3. Accounting procedures in an entity should be followed uniformly from period to period.
d. Disclosure	4. Accounting statement of different periods of an entity and those of different entities of a period should be based on the same accounting principles and procedures.
	5. Personal Judgement of accountants should not influence accounting measurements.

If capital on 1^st January is Rs. 19,400 and on 31^st December is Rs. 21,500, drawing is Rs. 4,300. Find profit/loss?

Match List-I with List-II and select the correct answer using the options given below the lists:

List-I (Types of accounts)	List-II (Principles)
a. Real Accounts	1. Debit the receiver credit the giver
b. Nominal Accounts	2. Debit what comes in credit what goes out
c. Personal Accounts	3. Debit all expenses credit all gains

Given,

	1st January	31st December
Assets	Rs. 30,000	-
Liability	Rs. 13,000	-
Capital	-	Rs. 16,500

Drawing during the year is Rs. 4,000 Capital on 1^th January is:

Subscriptions outstanding 31^st December, 1993 Rs. 200
Subscriptions received in advance in year 1993:
1994 ⇔ 300
1995 ⇔ 100
Total subscriptions received during 1994 Rs. 5,800
Subscriptions outstanding on 31^st December, 1994:
1993 ⇔ 50
1994 ⇔ 250
Subscriptions received in advance in 1994:
1995 ⇔ 350
1996 ⇔ 150
Subscriptions to be shown in Income and Expenditure Account for the year ended 31^st December, 1994 is:

Consider the following statements:
Assertion (A): Accounting is the language of business.
Reason (R): Accounting provides all information needed by a businessman.
Now select your answer:

If on 1^st January 1983 a plant is purchased for Rs. 1,20,000, its estimated life is ten years and its salvage value is Rs. 10,000 under which one of the following method would the 1983 depreciation be the largest?