Accounting MCQs

A: Added, Reduced

B: Added, Added

C: Deducted, Added

D: Deducted, Deducted

A: Only cash sales

B: All types of cash receipts and payments

C: Only revenue receipts

D: Only capital receipts

A: 1000 paid for the execution of a new plant

B: Loss of 10,000 incurred in increasing the sitting accommodation of a hotel

C: Damage paid on account of breach of a contract to supply certain goods

D: Repair to machinery purchased, second hand.

A: All the significant events after the Balance Sheet date

B: The events after Balance Sheet date but before submitting it to the Registrar of Companies

C: The events after Balance Sheet date but before its approval by the board

D: All changes after Balance Sheet date before its approval

A: Compensation paid to Directors on termination of their services

B: Expenditure incurred in connection with the renewal of a Trade Mark.

C: Gratuities paid to Directors on termination of their services.

D: Royalty paid in installments for the purchase of rights to manufacture and sell patient medicines.

A: Increase in working capacity of an asset

B: Reduction in operating costs

C: Replacing damaged parts of an asset

D: Both and

E: above

A: Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use

B: Stand by equipment and servicing equipment

C: Expenditure incurred on test runs and experimental production

D: Administration and general expenses

A: Errors of casting

B: Errors of carry forward

C: Errors of posting

D: All the three

A: Errors of complete omission

B: Errors of principle

C: Errors of posting to wrong account

D: All the three

A: 5,000 received from Sham credited to Ram A/c

B: 5,000 incurred on installation of new plant debited to travelling expenses A/c

C: 500 paid for wages debited to salary A/c

D: 500 being purchase of raw material debited to purchase A/c ` 50