Accounting MCQs

Question 1

Under diminishing balance method, depreciation

Accepted Answer

Decreases every year

Answer

Is constant every year

Answer

Increases every year

Answer

None of the above

Question 2

Legal expenses incurred on a suit for breach of contract to supply goods is a

Accepted Answer

Revenue expenditure

Answer

Capital expenditure

Answer

Deferred Revenue expenditure

Answer

Both 'b' and 'c'

Question 3

No journal entry is required to be passed when there is

Accepted Answer

Normal loss

Answer

Loss by theft

Answer

Loss of bad debts

Answer

Abnormal loss of business

Question 4

There must be a gap of at least ___ month between two calls

Accepted Answer

1

Answer

3

Answer

6

Answer

2

Question 5

Difference of total of debit and credit side of the trial balance is transferred to

Accepted Answer

Suspense A/c

Answer

Difference A/c

Answer

P & L A/c

Answer

Trading A/c

Question 6

Municipal tax Rs.6000 under dispute is a

Accepted Answer

Contingent liability

Answer

Revenue expenditure

Answer

Current liability

Answer

Current asset

Question 7

Joint venture account is a

Accepted Answer

Nominal account

Answer

Personal account

Answer

Real account

Answer

Dummy account

Question 8

Capital expenditures are recorded in the

Accepted Answer

Balance sheet

Answer

Trading account

Answer

Profit & Loss account

Answer

All of the above

Question 9

Recovery of bad debt is a

Accepted Answer

Revenue receipt

Answer

Revenue expenditure

Answer

Deferred expenses

Answer

Capital receipt