Accounting MCQs – Page 9

✅ A. Cash book

Option A : Cash book Option B : Trial balance Option C : Auditors report Option D : None of these Correct Answer : Cash book Read more

✅ D. All the three

Option A : It bring out any errors committed in preparation of Cash book / Bank Pass Book Option B : Highlights under delay in clearance of cheques deposited but not credited Option C : Help know actual bank balance Option D : All the three Correct Answer : All the three Read more

✅ B. Bank Overdraft

Option A : Surplus cash Option B : Bank Overdraft Option C : Terms deposits with bank Option D : None of these Correct Answer : Bank Overdraft Read more

✅ C. Cheques deposited and cleared

Option A : Errors in cash book Option B : Errors in pass book Option C : Cheques deposited and cleared Option D : Cheques issued but not presented for payment Correct Answer : Cheques deposited and cleared Read more

✅ B. Known Liabilities

Option A : Unknown Liabilities Option B : Known Liabilities Option C : Creation of Secret Reserves Option D : All the Three Correct Answer : Known Liabilities Read more

✅ C. Discounted present value Method

Option A : Straight line Method Option B : Written down value Method Option C : Discounted present value Method Option D : Sum of digits Method Correct Answer : Discounted present value Method Read more

✅ A. 20,000 Loss

Option A : 20,000 Loss Option B : 20,000 Profit Option C : 10,000 Loss Option D : 10,000 Profit Correct Answer : 20,000 Loss Read more

✅ B. Loss of 22,000

Option A : Loss of 20,000 Option B : Loss of 22,000 Option C : Loss of 11,000 Option D : Profit of 11,000 Correct Answer : Loss of 22,000 Read more

✅ C. The amount of depreciation decreases while the rate of depreciation remains the same

Option A : The amount of depreciation keeps increasing every year while the rate of depreciation keeps decreasing Option B : The amount of depreciation and the rate of depreciation decrease every year Option C : The amount of depreciation decreases while the rate of depreciation remains the same Option D : The amount of depreciation and the rate of… Read more

✅ A. sale is effected

Option A : sale is effected Option B : cash is received Option C : production is completed Option D : debts are collected Correct Answer : sale is effected Read more

✅ A. Raw material consumed

Option A : Raw material consumed Option B : Plant purchased Option C : Long term loan raised from bank Option D : Share Capital Correct Answer : Raw material consumed Read more

✅ C. Cost of stand by equipment

Option A : Repair of plant and machinery Option B : Salary paid to workers Option C : Cost of stand by equipment Option D : Annual whitewash of the office building Correct Answer : Cost of stand by equipment Read more

✅ D. Maintenance of the Asset

Option A : Acquisition of an Asset Option B : Extension of an Asset Option C : Improvement of the existing Asset Option D : Maintenance of the Asset Correct Answer : Maintenance of the Asset Read more

✅ B. Putting the new asset in working condition

Option A : Expenses for day to day running of the business Option B : Putting the new asset in working condition Option C : Depreciation Option D : Purchase of raw material Correct Answer : Putting the new asset in working condition Read more

✅ A. No flow

Option A : No flow Option B : Sources Option C : Uses Option D : Gain Correct Answer : No flow Read more

✅ A. Current assets and current liabilities

Option A : Current assets and current liabilities Option B : Profit and loss A/C and Balance sheet Option C : Current assets and non-current liabilities Option D : Current liabilities and non-current liabilities Correct Answer : Current assets and current liabilities Read more

✅ D. Trial Balance

Option A : Bank column of Cash Book Option B : Bank Pass Book Option C : Bank Statement Option D : Trial Balance Correct Answer : Trial Balance Read more

✅ A. Mistake in Cash Book

Option A : Mistake in Cash Book Option B : Mistake in Pass Book Option C : Cheque issued but not presented for payment Option D : Cheques deposited but not cleared Correct Answer : Mistake in Cash Book Read more

✅ B. Bank overdraft

Option A : Surplus cash Option B : Bank overdraft Option C : Terms deposits with bank Option D : None of these Correct Answer : Bank overdraft Read more

✅ A. Credit side of Cash Book

Option A : Credit side of Cash Book Option B : Debit side of Cash Book Option C : Debit side of Trial Balance Option D : Credit side of Balance Sheet Correct Answer : Credit side of Cash Book Read more