📒Accounting MCQs
Accounting MCQs
397 MCQs251
_________is the cost of converting raw material into finished products?
📒AccountingBy: Maneesh Kumar
APrime cost
BExplicit cost
CJob order cost
DConversion cost
252
Short term Assets expected to be converted into cash within 1 year or less than?
📒AccountingBy: Maneesh Kumar
ACurrent Assets
BFixed Assets
CCurrent Assets& current liabilities
DAll of the above
253
An income statement in which each item expressed as percentage of Sale?
📒AccountingBy: Maneesh kumar
ABalance sheet
Bincome statement
Ccommon size income statement
DAll of the Above
254
Which of the following entries is correct in respect of reserve for discounts on accounts payable?
ADebit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
BDebit Accounts Payable A/c and Credit P&L A/c
CDebit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
255
On scrutiny of a firm‘s books of accounts, it was observed that the following errors have occurred in the previous years but have not yet been rectified.
A7,000 Overstated
B10,000 Overstated
C17,000 Understated
D17,000 Overstated Net income will be overstated by 10,000 because the accrued expense are understated. Under/ Overstatement of depreciation of the year 2011-2012 does not affect the net income of current year i.e., 2012-13.]
256
The adjustment to be made for prepaid expenses is____________?
AAdd prepaid expenses to respective expenses and show it as an asset
BDeduct prepaid expenses from respective expenses and show it as an asset
CAdd prepaid expenses to respective expenses and show it as a liability
257
Bad debts recovered is:
ACredited to P&L A/c
BDebited to P&L A/c
CReduced from debtors in Balance Sheet
DAdded to debtors in Balance Sheet Bad debts earlier written–off and later recovered is a profit to the firm and hence they are transferred to Profit & loss Account.
258
A club paid subscription fees of `1,400. Out of which ` 200 is prepaid. In such case
AP&L A/C is debited with 1,400
Band
C200 is shown as current asset
DBoth
259
Gross Profit is equal to_________?
ASales – Cost of goods sold
BSales – Closing Stock + Purchases
COpening Stock + Purchases – Closing Stock
DNone of the above
260
Which of the following relationships is/are false?
ANet Profit = Gross Profit – Administration and Other expenses
Bis false. Opening stock+ Purchases-Closing stock= Cost of material consumed not cost of sales. Option (c ) is false.
Cabove Net Profit= Gross Profit- Administration and other expenses. Hence option
DBoth