📒Accounting MCQs
Accounting MCQs
397 MCQs141
Buildings account is debited with an amount towards repairs. This is an example of?
AError of commission
BBuildings account debited with an amount towards repairs is an error of principle. Error of principle is a wrong classification of expenditure or receipt.
CError of omission
DCompensating error
142
The amount payable to a person as consideration for the use of rights vested in him is
ADividend
BRoyalty
CPurchase consideration
DInstallment
143
The adjustment to be made for income received in advance is:
AAdd income received in advance to respective income and show it as a liability
BIncome received in advance given as an adjustment requires a deduction of the same from the income amount and disclosure of the same as a liability in the Balance Sheet.
CAdd income received in advance to respective income and show it as asset
DDeduct income received in advance from respective income and show it as an asset in the Balance Sheet
144
Which of the following statements is true?
AIf a Trial Balance tallies, it always means that none of the transactions has been completely omitted
BA Trial Balance will not tally if a transaction is omitted
CA customer to whom goods have been sold on credit cannot avail himself of a cash discount
Dis the true statement.
145
Closing stock in the Trial Balance implies that______________?
AIt is already adjusted in the opening stock
BIt is adjusted in the Purchase A/c
CIt is adjusted in the Cost of Sale A/c
DIt is adjusted in the Profit &Loss A/c Closing Stock appearing in the Trial Balance implies that it has already been adjusted in the Purchases Account and hence appears as an asset in the Balance Sheet.
146
Journal proper is meant for recording_____________?
ACredit purchase of fixed assets
BReturn of goods
CAll such transactions for which no special journal has been kept by the business
DNone of these
147
For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows: March 31,2010 – ` 56,000 March 31, 2011 – ` 51,000 March 31, 2012 – ` 64,000 The entry on March 31, 2012 to rectify these omissions would include a
ACredit to wage expense for ` 64,000
BDebit to wage expense for ` 64,000
CDebit to wage expense for ` 51,000
DDebit to wage expense for ` 13,000
148
If goods worth 1,750 returned to a supplier is wrongly entered in sales return book as 1,570, then
ANet Profit will decrease by 3,140
BGross Profit will increase by 3,320
CGross Profit will decrease by 3,500
DGross Profit will decrease by 3,320
149
Which of the following is not correct about Errors?
AErrors which affect one account can be errors of posting
BErrors of omission arise when any transaction is left to be recorded
CErrors of carry forward from one year to another year affect both Personal and Real A/c
DErrors of commission arise when any transaction is recorded in a fundamentally incorrect manner Error of Commission arises because of wrong recording, wrong casting, wrong carry forward, wrong posting, wrong balancing etc.
150
While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result
APrevious year‘s profit is overstated and current year‘s profit is also overstated.
BPrevious year‘s profit is understated and current year‘s profit is overstated.
CClosing stock overstatement and opening stock understatement increases the profits and vice versa is also equally true.
DThere will be no impact on the profit of either the previous year or the current year.