Accounting MCQs

Question 1

Preliminary expenses are treated as

Accepted Answer

Miscellaneous expenditure

Answer

Fixed asstes

Answer

Current assets

Answer

Intangible assets

Question 2

A company cannot issue redeemable preference shares for a period exceeding

Accepted Answer

20 years

Answer

10 years

Answer

30 years

Answer

15 years

Question 3

The following error will affect the Trial Balance

Accepted Answer

Error of partial omission

Answer

Error of principle

Answer

Error of complete omission

Answer

All of the above

Question 4

Income includes

Accepted Answer

All of the above

Answer

Income earned

Answer

Income received

Answer

Income receivable

Question 5

Cash Account is

Accepted Answer

Real account

Answer

Personal account

Answer

Nominal account

Answer

None of the above

Question 6

Heavy amount spent for the advertisement of new company product is

Accepted Answer

Deferred Revenue expenditure

Answer

Revenue expenditure

Answer

Capital expenditure

Answer

Either 'a' or 'c'

Question 7

Liability for bill discounted is a

Accepted Answer

Contingent liability

Answer

Fixed liability

Answer

Current liability

Answer

None of the above

Question 8

Interest on debentures is calculated on

Accepted Answer

Face value of debentures

Answer

Purchase value of debentures

Answer

Market value of debentures

Answer

All of the above

Question 9

The parties to joint venture are called

Accepted Answer

Co-ventures

Answer

Friends

Answer

Principal and agent

Answer

Partners