Accounting MCQs

A: Liability

B: Assets

C: Revenue receipts

D: Capital receipts

A: Research and development costs during the year

B: Interest on borrowed fund utilized for acquisition of Office Furniture

C: Installation charges paid in conjunction with the purchase of Office Equipment

D: Monthly rent of a machinery used in the business

A: Add income received in advance to respective income and show it as a liability

B: Deduct income received in advance from respective income and show it as a liability

C: Add income received in advance to respective income and show it as asset

D: Deduct income received in advance from respective income and show it as an asset in the Balance Sheet

A: The Trial Balance is prepared after preparing the Profit and Loss Account

B: The Trial Balance shows only balances of Assets and Liabilities

C: The Trial Balance shows only nominal account balances

D: The Trial Balance has no statutory importance from the point of view of law

A: Previous years profit is overstated and current years profit is also overstate

B: Previous years profit is understated and current years profit is overstate

D: Previous years profit is overstated and current years profit is understate

A: Errors which affect one account can be errors of posting

B: Errors of omission arise when any transaction is left to be recorded

C: Errors of carry forward from one year to another year affect both Personal and Real A/c

D: Errors of commission arise when any transaction is recorded in a fundamentally incorrect manner

A: Entering wrong amount in the subsidiary book affects the agreement of the Trial Balance

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

C: Errors of principle do not affect the agreement of Trial Balance

D: Both

E: and

A: Error of casting affects personal accounts

B: Omission of a transaction from a subsidiary record affects only one account

C: Error of carry forward affects two accounts

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

A: Credit purchase of fixed assets

B: Return of goods

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

D: None of these

A: It is already adjusted in the opening stock

B: It is adjusted in the Purchase A/c

C: It is adjusted in the Cost of Sale A/c

D: It is adjusted in the Profit &Loss A/c