Category: Accounting Mcqs

A. Add income received in advance to respective income and show it as a liability
B. Deduct income received in advance from respective income and show it as a liability
C. Add income received in advance to respective income and show it as asset
D. Deduct income received in advance from respective income and show it as an asset in the Balance Sheet

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A. Arithmetic accuracy
B. Errors of commission
C. Omissions of economic events
D. Understatements of balances

A. Sales – Cost of goods sold
B. Sales – Closing Stock + Purchases
C. Opening Stock + Purchases – Closing Stock
D. None of the above

A. Nominal A/c
B. Tangible Asset
C. Intangible Asset
D. Fictitious Asset

A. Depreciation
B. Drawings
C. Outflow of cash
D. Appreciation

i. Debit Bills Receivable Account
ii. Debit Drawee‘s Account
iii. Credit Drawee‘s Account
iv. Credit Sales Account

A. Only (i) above
B. Both (ii) and (iv) above
C. Both (i) and (iii) above
D. Both (i) and (iv) above
(more…)

A. Capital account
B. Fixed assets account
C. Building account
D. Cash account

A. Interest payable on loans or deferred credits taken for the acquisition or construction of fixed assets before they are ready for use
B. Stand by equipment and servicing equipment
C. Expenditure incurred on test runs and experimental production
D. Administration and general expenses

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