📒Accounting MCQs
Accounting MCQs
397 MCQs111
Discount allowed is___________?
AExpense of business
BIncome of business
CLoss of business
DAbnormal loss of business
112
Which of the following assets is/are to be valued at the lower of cost and net realizable value?
Ais a fixed intangible asset and is shown at the cost of its acquisition. Investments
Band
Cis incorrect because a correct answer with incorrect answer is an incorrect answer. Thus, the correct answer is B
DBoth
113
Closing stock is generally valued at______________?
ACost Price
BMarket Price
CCost price or Market price whichever is higher
DPara 5, of AS-2 states that inventories should be valued at the lower of cost and net realizable value.]
114
Which of the following is true regarding closing entries?
AThey must be followed by reversing entries
BThey transfer the balances in all of the Nominal Accounts to the Trading and Profit and Loss Account
CThey must be made after the reversing entries but before the adjusting entries
115
Which of the following statements is/are true ?
Ais false. Total of Return Outwards book (being purchase return) has a credit balance. The total is transferred at the end of the period to the credit of the Purchase Account and not debited to Return Outwards Account. Statement
Bis false. The balance of Petty Cash book is not a liability, it is an asset as it is the balance of cash left with the petty cashier. Statement
Cis incorrect. Cash Book is both a subsidiary book or book of original entry where all cash transactions are directly recorded and a ledger, it plays the role as a Cash Account (a ledger). Hence statement
Dis true.
116
Cash received for services rendered will______________?
AIncrease cash and liability
BIncrease equity and liability
CIncrease fixed assets and cash
DIncrease cash and equity
117
Fresh capital introduction will increase____________?
AAssets and liabilities
BAssets and equity
CLiabilities and equity and bank balance
DCapital and liabilities
118
Which of the following accounting equation is correct?
ACash+Other assets=Capital-Liabilities
BCapital+ Liabilities=Assets+Income
CAssets-Liabilities=Capital
DAssets+Capital=Liabilities
119
Which of the following is the practical implementation of the accounting equation?
ACash flow statement
BIncome statement
CStatement of changes in equity
DStatement of financial position
120
Payment of expenses will ______ the assets
AIncrease
BReduce
Capportion
DOverstate