📒Accounting MCQs
Accounting MCQs
397 MCQs181
Which of the following is not depreciated?
ABuilding
BLand
CPlant and Machinery
DOffice equipment
182
Which of the following is an external cause of depreciation?
ARoutine repair and maintenance
BMisuse
CObsolescence
DWear and tear
183
Depreciation is calculated on the____________?
ACost price of asset
BMarket price
CCost+ Transport+ Installation expenses
DCost or market values whichever is less
184
Which of the following statements is correct about Depreciation?
ADepreciation cannot be provided in case of loss in a financial year
Bis a true statement.
CDepreciation is provided in the books only when there is profit
DDepreciation is an appropriation of profit Depreciation is provided as a charge against profits. It is not an appropriation of profit. It is provided irrespective of whether the business is making a loss or a profit. Hence statement
185
In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?
AStraight-line method
BWritten down value method
CUnits-of-production method
DSum-of-the years‘-digits method
186
Which of the following factors are primarily considered to determine the economic life of an asset?
APassage of time, asset usage, and obsolescence
BTax regulations and SEBI guidelines
CTax regulations and asset usage
DSEBI guidelines and Asset usage
187
If actual bad debts are more than the provision for bad debts, then there will be a_____________?
ACredit balance of Provision for Bad Debts Account
BDebit balance of Provision for Bad Debts Account
CDebit balance of Bad Debts Account
DDebit balance of Discount on Debtors Account Provision for Bad Debts Account is created for writing off bad debts. Since the provision for bad debts is a credit balance account, If the actual bad debts exceed the provision created then there will be debit balance of provision for bad debts account.
188
Which of the following is not classified as inventory in the financial statements?
AFinished goods
BWork-in-process
CStores and spares
DAdvance payments made to suppliers for raw materials
189
Recent developments have made much of a company‘s inventory obsolete. This obsolete inventory should be?
AWritten down to zero or its scrap value
BShown in the Balance Sheet at its replacement cost
CShown in the Balance Sheet at cost, but classified as a non-current asset
DCarried in the accounting records at cost until it is sold
190
If a company has contingent liabilities, they appear in the__________?
ABalance Sheet
BDirectors‘ report
CNotes on account to Balance Sheet
DChairman‘s report Contingent liabilities are disclosed in the notes to Balance Sheet