Category: Accounting Mcqs

A. Journal entry
B. Multi entry
C. Additional entry
D. Compound entry

A. No change occurs to inventories for either use absorption costing or variable costing methods
B. The use of absorption costing produces a higher net income than the use of variable costing
C. The use of absorption costing produces a lower net income than the use of variable costing
D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

A. Finished goods
B. Work-in-process
C. Stores and spares
D. Advance payments made to suppliers for raw materials

A. $5000
B. $10,000
C. $15,000
D. $20,000

A. Asset side
B. Liability side
C. Netted from Capital
D. Profit & Loss A/c

A. Depreciation cannot be provided in case of loss in a financial year
B. Depreciation is a charge against profit
C. Depreciation is provided in the books only when there is profit
D. Depreciation is an appropriation of profit

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A. Debtors A/c
B. Profit & Loss A/c
C. Profit & Loss Adjustment A/c
D. Profit & Loss Appropriation A/c

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