📒Accounting MCQs
Accounting MCQs
397 MCQs231
Which of the following is not a method of charging depreciation?
AStraight line Method
BWritten down value Method
CDiscounted present value Method
DSum of digits Method
232
Provision is created for____________?
AUnknown Liabilities
BKnown Liabilities
CCreation of Secret Reserves
DAll the Three
233
Which of the following is not a cause of difference in balance as per cash book and balance as per bank pass book___________?
AErrors in cash book
BErrors in pass book
CCheques deposited and cleared
DCheques issued but not presented for payment
234
At the time of preparation of financial accounts, bad debt recovered account will be transferred to?
ADebtors A/c
BProfit & Loss A/c
CProfit & Loss Adjustment A/c
235
Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?
AThe bad debt expense is not matched with the related sales because the expense is written off in the year of occurrence and it is not matching with the related sales.
BRevenue is overstated in the year of Sales as a result not making any provision for possible loss on account of non- recoverable account.
CIt violates the matching principle of accounting as the expense of bad debt is not matched for the same period of income. Thus,
Dis the correct answer.
236
The portion of the acquisition cost of the asset yet to be allocated is known as___________?
AWritten down value
BAccumulated value
CSalvage value
DResidual Value
237
Depreciation is a process of____________?
AValuation
BValuation and allocation
CAllocation
238
The main objective of providing depreciation is to?
Aand
Babove The main objective of providing depreciation is to find out the true Net Profit or Loss for an accounting period and to present a true and fair view of the state of affairs of the business. Providing funds for replacement is only an ancillary objective and not the main objective.]
CProvide funds for replacement of fixed assets
DBoth
239
The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?
📒AccountingBy: Maneesh kumar
AInterest Rate
BRequired rate of return
CNominal interest rate
DAll of the above
240
Period cost include which of the following ?
📒AccountingBy: Maneesh kumar
Aselling Expense
BDirect labor
Cfactory overhead
Dselling Expenses & administrative expenses