Accounting MCQs

Question 1

Which error cannot be revealed on the preparation of trial balance?

Accepted Answer

Compensatory errors

Answer

Wrong totalling of account

Answer

Error of commission

Answer

Wrong balancing of an account

Question 2

Parties to a bill of exchange are

Accepted Answer

All of the above

Answer

Drawer

Answer

Drawee

Answer

Payee

Question 3

Accommodation bill is drawn

Accepted Answer

To cater the fund requirements of both the parties

Answer

To finance actual purchase or sale of goods

Answer

To facilitate trade transmission

Answer

None of the above

Question 4

Rs.5000 spent on maintenance of computer is

Accepted Answer

Revenue expenditure

Answer

Deferred capital expenditure

Answer

Capital expenditure

Answer

None of the above

Question 5

The assumption underlying the fixed installment method of depreciation is that of ____ of the asset over its useful life

Accepted Answer

Equal usage

Answer

Usage

Answer

Charge

Answer

None of the above

Question 6

_____ will generally show a debit balance

Accepted Answer

Drawings

Answer

Bank loan

Answer

Bad debts recovered

Answer

Salary payable

Question 7

Profit & Loss account is prepared for a period of one year by following

Accepted Answer

Periodicity concept

Answer

Business entity concept

Answer

Accrual concept

Answer

None of the above

Question 8

Which of the following enhances the earning capacity of an asset?

Accepted Answer

Both 'b' and 'c'

Answer

Reduction in operating costs

Answer

Increase in working capacity of an asset

Answer

Replacing damage parts of an asset

Question 9

Gross profit is equal to

Accepted Answer

Sales - Cost of goods sold

Answer

Opening stock + purchases - closing stock

Answer

Net profit - expenses

Answer

Sales - Closing stock + purchases