Accounting MCQs

A: If a Trial Balance tallies, it always means that none of the transactions has been completely omitted

B: A Trial Balance will not tally if a transaction is omitted

C: A customer to whom goods have been sold on credit cannot avail himself of a cash discount

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

A: Overstatement of Assets

B: Understatement of Assets

C: Overstatement of Liabilities

D: Understatement of Liabilities

A: The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013

B: The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013

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

D: The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013

A: Sale of ` 100 was recorded in the Purchases Journal

B: Wages paid to Mohan have been debited to his account

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

D: Repairs to buildings have been debited to buildings account

A: Goodwill

B: Inventories

C: Investments

D: Both

E: and

A: Delivery method

B: Percentage-of-completion method

C: Production method

D: Moving average method

A: Dividend

B: Royalty

C: Purchase consideration

D: Installment

A: Error of commission

B: Error of principle

C: Error of omission

D: Compensating error

A: Book of entries

B: Book of original entries

C: T account

D: Books of economic event

A: Assets column

B: Date column

C: Description column

D: Amount column