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.Management Sciences
Category: Accounting Mcqs
The accountant of Leo Ltd. recorded a payment by cheque to a creditor for supply of materials as 1,340.56. The bank recorded the cheque at its correct amount of 3,140.56. The Company has not passed any rectification entries and the error is not detected through the bank reconciliation. The impact of this error is
A. The Trial Balance will not agree
B. The balance of creditors is understated
C. The purchases are understated
D. The favorable bank balance as per Pass Book is less than the Bank balance as per Cash book
Which of the following is an external cause of depreciation?
A. Routine repair and maintenance
B. Misuse
C. Obsolescence
D. Wear and tear
If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.
A. 0.65
B. 0.35
C. 1.50
D. 5.29
Which of the following will not appear in Profit and Loss Account of a business?
A. Drawings
B. Bad debts
C. Accrued expenses
D. Reserve for discount on Sundry Creditors
(more…)
_________ will be credited if goods are given as charity?
A. Cash
B. Charity
C. Purchases
D. Sales
Accommodation bills are generally for?
A. Genuine trade reasons
B. For mutual financial accommodation
C. To help augment money supply
D. All the three
_________ Checks that are presented to bank but not yet credited by the bank.
A. Unpresented checks
B. Uncredited checks
C. Outstanding checks
D. Bounced checks
Discount allowed is a kind of deduction from_____________?
A. Account payable
B. Account receivable
C. Cash account
D. Discount account
Provision is created for____________?
A. Unknown Liabilities
B. Known Liabilities
C. Creation of Secret Reserves
D. All the Three
Which of the following is the external user of financial statements?
A. Manager of the business
B. CEO of the business
C. Creditor of the business
D. Controller of the business
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