📒Accounting MCQs
Accounting MCQs
397 MCQs131
The process of recording is done?
ATwo times a year
Bonce a year
CFrequently during the accounting period
DAt the end of a accounting period
132
Assets-Liabilities=____________?
ACash
BEquity
CNet income
DNet expenses
133
Current assets – Current liabilities=?
ACapital
BAbsorbed capital
CNet assets
DNet working capital
134
An increase in provision for bad debt will____________?
ADecrease net income
BDecrease liabilities
CIncrease net income
DIncrease liabilities
135
Depreciation decreases____________?
ALiabilities
BCash
CBank
DCapital
136
If Cash=$1000 inventories=$4000 Debtors=$5000 fixed assets=? Capital+Liabilities=$15000 What is the Amount of total assets?
A$5000
B$10,000
C$15,000
D$20,000
137
Which of following best describes the increase in equity expands___________?
ABusiness operations
Bcash outflows
CInflows of cash
DAppropriation expenses
138
Which of the following errors is an error of omission?
ASale of ` 100 was recorded in the Purchases Journal
BWages paid to Mohan have been debited to his account
CThe total of the sales journal has not been posted to the Sales Account
DRepairs to buildings have been debited to buildings account Error of omission occurs when a transaction is entirely omitted from record in the original books partially omitted while posting. Therefore, omission of posting of the sales journal to the Sales Account is an error of omission.
139
During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true?
AThe cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013
BThe income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013
CThe retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013
140
The concept of conservatism will have the effect of______________?
AOverstatement of Assets
BUnderstatement of Assets
COverstatement of Liabilities
DUnderstatement of Liabilities The concept of conservatism will have the effect of understatement of assets since the financial statements are usually drawn up on rather a conservative basis. Window-dressing i.e., showing a position better than what it is, is not permitted.