Accounting MCQs – Page 7

✅ C. common size income statement

Option A : Balance sheet Option B : income statement Option C : common size income statement Option D : All of the Above Correct Answer : common size income statement Read more

✅ A. Current Assets

Option A : Current Assets Option B : Fixed Assets Option C : Current Assets& current liabilities Option D : All of the above Correct Answer : Current Assets Read more

✅ D. Conversion cost

Option A : Prime cost Option B : Explicit cost Option C : Job order cost Option D : Conversion cost Correct Answer : Conversion cost Read more

✅ B. Return inwards

Option A : Return outwords Option B : Return inwards Option C : cost of goods sold Option D : carriage on sales Correct Answer : Return inwards Read more

✅ D. Last in, First Out

Option A : Lots in , Few out Option B : Link input, Format Output Option C : Last input, First Output Option D : Last in, First Out Correct Answer : Last in, First Out Read more

✅ A. Sole-proprietorship

Option A : Sole-proprietorship Option B : General Partnership Option C : Limited Partnership Option D : Corporation Correct Answer : Sole-proprietorship Read more

✅ B. Balance Sheet

Option A : Income Statement Option B : Balance Sheet Option C : Cash Flow Statement Option D : Retained Earning Statement Correct Answer : Balance Sheet Read more

✅ D. selling Expenses & administrative expenses

Option A : selling Expense Option B : Direct labor Option C : factory overhead Option D : selling Expenses & administrative expenses Correct Answer : selling Expenses & administrative expenses Read more

✅ C. Rs. 17,000

Option A : Rs. 33,000 Option B : Rs. 25,000 Option C : Rs. 17,000 Option D : Rs. 8,000 Correct Answer : Rs. 17,000 Read more

✅ A. Written down to zero or its scrap value

Option A : Written down to zero or its scrap value Option B : Shown in the Balance Sheet at its replacement cost Option C : Shown in the Balance Sheet at cost, but classified as a non-current asset Option D : Carried in the accounting records at cost until it is sold Correct Answer : Written down to zero… Read more

✅ A. Book value

Option A : Book value Option B : Intrinsic value Option C : Cost Option D : Market value Correct Answer : Book value Read more

✅ D. Advance payments made to suppliers for raw materials

Option A : Finished goods Option B : Work-in-process Option C : Stores and spares Option D : Advance payments made to suppliers for raw materials Correct Answer : Advance payments made to suppliers for raw materials Read more

✅ B. Debit balance of Provision for Bad Debts Account

Option A : Credit balance of Provision for Bad Debts Account Option B : Debit balance of Provision for Bad Debts Account Option C : Debit balance of Bad Debts Account Option D : Debit balance of Discount on Debtors Account Correct Answer : Debit balance of Provision for Bad Debts Account Read more

✅ A. Debit Profit and Loss Account and deduct the provision from debtors

Option A : Debit Profit and Loss Account and deduct the provision from debtors Option B : Credit Profit & Loss Account and deduct the provision from debtors Option C : Credit Profit and Loss Account and add the provision to debtors Option D : Debit Profit & Loss Account and add the provision to debtors Correct Answer : Debit… Read more

✅ D. All of the above

Option A : The bad debt expense is not matched with the related sales Option B : Revenue is overstated in the year of sales Option C : It violates the matching principle of accounting Option D : All of the above Correct Answer : All of the above Read more

✅ B. Profit & Loss A/c

Option A : Debtors A/c Option B : Profit & Loss A/c Option C : Profit & Loss Adjustment A/c Option D : Profit & Loss Appropriation A/c Correct Answer : Profit & Loss A/c Read more

✅ D. Capital Reserve A/c

Option A : General Reserve A/c Option B : Profit & Loss A/c Option C : Asset A/c Option D : Capital Reserve A/c Correct Answer : Capital Reserve A/c Read more

✅ C. Cost+ Transport+ Installation expenses

Option A : Cost price of asset Option B : Market price Option C : Cost+ Transport+ Installation expenses Option D : Cost or market values whichever is less Correct Answer : Cost+ Transport+ Installation expenses Read more

✅ C. Obsolescence

Option A : Routine repair and maintenance Option B : Misuse Option C : Obsolescence Option D : Wear and tear Correct Answer : Obsolescence Read more

✅ B. Land

Option A : Building Option B : Land Option C : Plant and Machinery Option D : Office equipment Correct Answer : Land Read more