Accounting MCQs
Accounting MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?
A: Rs. 33,000
B: Rs. 25,000
C: Rs. 17,000
D: Rs. 8,000
Rs. 17,000
Average Accounting Return is a measure of accounting profit relative to:
A: Book value
B: Intrinsic value
C: Cost
D: Market value
Book value
Recent developments have made much of a companys inventory obsolete. This obsolete inventory should be?
A: Written down to zero or its scrap value
B: Shown in the Balance Sheet at its replacement cost
C: Shown in the Balance Sheet at cost, but classified as a non-current asset
D: Carried in the accounting records at cost until it is sold
Written down to zero or its scrap value
Which of the following is not classified as inventory in the financial statements?
A: Finished goods
B: Work-in-process
C: Stores and spares
D: Advance payments made to suppliers for raw materials
Advance payments made to suppliers for raw materials
If actual bad debts are more than the provision for bad debts, then there will be a_____________?
A: Credit balance of Provision for Bad Debts Account
B: Debit balance of Provision for Bad Debts Account
C: Debit balance of Bad Debts Account
D: Debit balance of Discount on Debtors Account
Debit balance of Provision for Bad Debts Account
The creation of provision for doubtful debts given as an adjustment requires____________?
A: Debit Profit and Loss Account and deduct the provision from debtors
B: Credit Profit & Loss Account and deduct the provision from debtors
C: Credit Profit and Loss Account and add the provision to debtors
D: Debit Profit & Loss Account and add the provision to debtors
Debit Profit and Loss Account and deduct the provision from debtors
Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?
A: The bad debt expense is not matched with the related sales
B: Revenue is overstated in the year of sales
C: It violates the matching principle of accounting
D: All of the above
All of the above
At the time of preparation of financial accounts, bad debt recovered account will be transferred to?
A: Debtors A/c
B: Profit & Loss A/c
C: Profit & Loss Adjustment A/c
D: Profit & Loss Appropriation A/c
Profit & Loss A/c
The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to?
A: General Reserve A/c
B: Profit & Loss A/c
C: Asset A/c
D: Capital Reserve A/c
Capital Reserve A/c
The entry for creating a Provision for bad debts is_____________?
A: Debit Provision for Bad Debts A/c and credit Debtors A/c
B: Debit Debtors A/c and credit Provision for Bad Debts A/c
C: Debit Provision for Bad Debts A/c and credit Profit & Loss A/c
D: Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.
Debit Profit and Loss A/c and credit Provision for Bad Debts A/c.