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.Management Sciences
Category: Accounting Mcqs
If the business’s owner withdraws cash for his/her personal use what will be the effect on capital?
A. Increase in capital
B. Remain the same
C. Decrease in capital
D. No effect on capital
The compensation paid by the borrower of fund to lender, from the borrower point of the cost of borrowing fund is called?
A. Interest Rate
B. Required rate of return
C. Nominal interest rate
D. All of the above
Which of the following is an one sided error?
A. 500 purchase of old equipment not recorded in the books of A/c at all
B. 500 being expense on travelling expense credited to travelling expenses
C. Both
D. None
The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :
A. Uncontrollable cost
B. Sunk cost
C. Avoidable cost
D. Opportunity cost
Double entry means______________?
A. Entry in two sets of books
B. Entry at two ends
C. Entry at two dates
D. Entry for two aspects of the transaction
Which of the following is true about a trial balance?
A. It lists down the balances of accounts
B. It lists down the balances of a balance sheet
C. It is a kind of financial statement
D. It is not a part of accounting cycle
The amount payable to a person as consideration for the use of rights vested in him is
A. Dividend
B. Royalty
C. Purchase consideration
D. Installment
Debts which are payable in the course of a month are called _____________?
A. External liabilities
B. Fixed liabilities
C. Current liabilities
D. Liquid Liabilities
Which of the following is the closing balance of a ledger account?
A. Balance c/d
B. Balance b/d
C. Balance e/d
D. Balance f/c
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