Accounting MCQs – Page 12

✅

Option A : Errors which affect one account can be errors of posting Option B : Errors of omission arise when any transaction is left to be recorded Option C : Errors of carry forward from one year to another year affect both Personal and Real A/c Option D : Errors of commission arise when any transaction is recorded in… Read more

✅ D. Gross Profit will decrease by 3,320

Option A : Net Profit will decrease by 3,140 Option B : Gross Profit will increase by 3,320 Option C : Gross Profit will decrease by 3,500 Option D : Gross Profit will decrease by 3,320 Correct Answer : Gross Profit will decrease by 3,320 Read more

✅ B. All credit purchases of goods

Option A : All purchases of goods Option B : All credit purchases of goods Option C : All credit purchases Option D : None of these Correct Answer : All credit purchases of goods Read more

✅

Option A : 17,000 (overstated Option B : 12,000 (understated Option C : 7,000 (understated Option D : 7,000 (overstate Correct Answer : Read more

✅ B. Undercasting or overcastting of a subsidiary book is an example or error of commission

Option A : Entering wrong amount in the subsidiary book affects the agreement of the Trial Balance Option B : Undercasting or overcastting of a subsidiary book is an example or error of commission Option C : Errors of principle do not affect the agreement of Trial Balance Option D : Both Correct Answer : Both and above Read more

✅ D. Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue

Option A : Error of casting affects personal accounts Option B : Omission of a transaction from a subsidiary record affects only one account Option C : Error of carry forward affects two accounts Option D : Error of principle involves an incorrect allocation of expenditure or receipt between capital and revenue Correct Answer : Error of principle involves an… Read more

✅ C. All such transactions for which no special journal has been kept by the business

Option A : Credit purchase of fixed assets Option B : Return of goods Option C : All such transactions for which no special journal has been kept by the business Option D : None of these Correct Answer : All such transactions for which no special journal has been kept by the business Read more

✅ B. It is adjusted in the Purchase A/c

Option A : It is already adjusted in the opening stock Option B : It is adjusted in the Purchase A/c Option C : It is adjusted in the Cost of Sale A/c Option D : It is adjusted in the Profit &Loss A/c Correct Answer : It is adjusted in the Purchase A/c Read more

✅ D. A credit balance in the Pass Book indicates excess of deposits over withdrawals

Option A : If a Trial Balance tallies, it always means that none of the transactions has been completely omitted Option B : A Trial Balance will not tally if a transaction is omitted Option C : A customer to whom goods have been sold on credit cannot avail himself of a cash discount Option D : A credit balance… Read more

✅ B. Error of principle

Option A : Error of commission Option B : Error of principle Option C : Error of omission Option D : Compensating error Correct Answer : Error of principle Read more

✅ B. Understatement of Assets

Option A : Overstatement of Assets Option B : Understatement of Assets Option C : Overstatement of Liabilities Option D : Understatement of Liabilities Correct Answer : Understatement of Assets Read more

✅ C. The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013

Option A : The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013 Option B : The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013 Option C : The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013 Option D : The cost of… Read more

✅ C. The total of the sales journal has not been posted to the Sales Account

Option A : Sale of ` 100 was recorded in the Purchases Journal Option B : Wages paid to Mohan have been debited to his account Option C : The total of the sales journal has not been posted to the Sales Account Option D : Repairs to buildings have been debited to buildings account Correct Answer : The total… Read more

✅ B. Inventories

Option A : Goodwill Option B : Inventories Option C : Investments Option D : Both Correct Answer : Inventories Read more

✅ D. Moving average method

Option A : Delivery method Option B : Percentage-of-completion method Option C : Production method Option D : Moving average method Correct Answer : Moving average method Read more

✅ B. Royalty

Option A : Dividend Option B : Royalty Option C : Purchase consideration Option D : Installment Correct Answer : Royalty Read more

✅ C. Cash discount

Option A : Trade discount Option B : Prompt payment discount Option C : Cash discount Option D : Bulk discount Correct Answer : Cash discount Read more

✅ B. Identifying the transaction

Option A : Recording the transaction Option B : Identifying the transaction Option C : Posting the transaction Option D : Preparing the source documents Correct Answer : Identifying the transaction Read more

✅ A. Assets accounts

Option A : Assets accounts Option B : liability accounts Option C : Cash accounts Option D : Revenue accounts Correct Answer : Assets accounts Read more

✅ D. Depreciable value

Option A : Scrap value Option B : Residual value Option C : Market value Option D : Depreciable value Correct Answer : Depreciable value Read more