Multiple Choice Questions (MCQs)
In a trading concern, salaries of marketing staff is included in ________.
In a partnership business, there's a profit of 450,000 and A, B, and C are partners with profit/loss sharing ratio of two-ninth, three-ninth and four-ninth respectively, then how much would be the profit of the each partner?
The total cost of an asset minus accumulated depreciation is called as _________.
In accounting, which of the following account will be credited if the bad debts are recovered in cash?
A statement which is prepared at the end of financial year of a manufacturing concern showing a brief summary of the whole process is called as:
How many directors are there in the private limited company:
Which of the following methods of inventory valuation shows a lower cost of goods sold when prices are rising with the passage of time?
Under IAS 2, material available for use in the production process is known as:
________ is the art of recording, classifying and summarizing the transactions and events of a business and interpreting the results thereof
When closing stock is given in trial balance, then it will effect:
The proper classification of Cost of Goods Sold account is:
Under the diminishing balance method, depreciation is calculated on:
Cost of goods manufactured + opening finished goods – ending finished goods =?
Opening direct material inventory is adjusted with ________ of direct material, to calculate the cost of sales.
In a single entry system, it is NOT possible to prepare:
Which of the following is the example of current liability?
The entry for Revaluation of an asset, in case of gain on revaluation will be:
Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liabilities?
Which of the following is the first book to record a transaction?
The total of all costs incurred to convert raw material into finished goods is known as:
Consider the following data: Particulars Rs. Assets? Owner's equity 35,000 Liabilities 90,000
Which of the following particular/s is/are included in payment voucher?
General reserves are shown in:
Expenses are also known as:
What does single entry accounting mean?
A Balance Sheet discloses the financial position of a firm:
A wrong entry on the debit side of the Cash Book would lead to:
What should be credited, if rent paid in cash?
A company’s merchandise, raw materials, and finished and unfinished products which have not yet been sold are known as:
What is nature of Capital account?
Which of the following expenses are called financial expenses?
If adjusted bank book balance is required before preparation of bank reconciliation statement, which of the following items need NOT to be adjusted?
The amount of depreciation charged under straight line method:
Which of the following should be credited on sale of completed goods on cash basis in manufacturing concern?
ABC & Co. received dividend on shares. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues
Normally single entry book keeping is followed by the:
Which of the following is a Revenue receipt?
All of the following are Non-commercial (Non-Profit Oriented) organizations, EXCEPT:
A minor repair to a photocopy machine was paid in cash. Correct entry was made to cash account but no entry was made to other account. What will be the credit rffect of journal entry to rectify this error, if there is suspense account in trial balance?
Find out the missing value of an Accounting Equation with the help of given data: Owner’s equity Rs. 22,500 Total Liabilities Rs. 80, 385 Cash Rs. 1,000 Bank Rs. 2,000 Debtors Rs. 500
A Debtor Control Account is a part of:
Partnership means a lawful business owned by at least:
If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating expenses Rs. 300,000. What will be net result?
In which of the following statement opening stock is shown?
Prepayments are included in:
Total depreciation of an asset can not exceed its:
Commercial Accounting is done through a system that is known as:
Budget is another name of __________ in Accounting.
Which of the following assets are shown at written down value in balance sheet?
Which of the following is used to calculate Gross Profit?
Loss on the sale of plant and machinery should be written off against:
ABC & Co. purchased a typewriter for Rs. 5,000 and paid by cheque. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues
Which of the following should be shown on debit column of Trial Balance by considering the balance as normal?
Which of the following is a Capital expenditure?
Under perpetual system of recording inventory, purchase of inventory is recognized as ________.
A receivables ledger control account had a closing balance of Rs.9,000. Cash sales of Rs. 500 had been omitted to record in this control account. What should be the correct balance of receivables control account?
Which would be the value of Total Factory Cost, if cost of raw material, direct labor, and manufacturing overhead are Rs.80,000, Rs.50,000, and Rs.60,000 respectively?
A payables ledger control account had a closing balance of Rs.9,000. A credit sales of Rs. 500 had been omitted to record in this control account. What should be the correct balance of payables control account?
A manufacturing concern has Raw material of worth Rs. 100,000, Direct Labor Rs. 75,000 and Factory Overhead Rs. 50,000. The amount of Prime cost will be:
Which of the following entry will be recorded for discount received in a control account?
Which of the following is/are the function of financial accounting?
Which of the following particular is NOT included in journal voucher?
If debit side of a ledger is greater than credit side, the balance will be called as:
Goods of Rs. 1,000 purchased from Mr. "A" were recorded in sales book. The rectification of this errer will:
"Share Premium" account is which type of the reserve:
The proper classification of Suppliers account is:
For every debit there must be a credit with an equal amount. This is also called as:
Which of the following is TRUE about a merchandising company?
The proper classification and normal balance of accounts receivables account is:
Under periodic system of recording inventory, purchase of inventory is debited to ________.
Partial Payment of loan from bank is made Rs 50000. The effects of this transaction are:
Which of the following should be credited on sale of completed goods on credit basis in manufacturing concern?
Which of the following is the best explanation of capital expenditure?
________ is the basic part of an item, which is processed to make a complete item:
An amount of Rs. 200 received from Mr. "P" but credited to Mr. "Q" would affect:
A transaction that has been recorded in wrong account of the same class instead of being recorded in the right account, this is called:
Which of the following is the "right issue" of shares:
An accounting system in which risk of fraud or its non discovery is less is known as:
In which of the following statement/s closing stock is/are shown?
The proper classification of fees earned account is:
Which of the following docmuent has the conclusive evidence that the seperate legal entity has been formed:
What will be the amount of depreciation charged in 3rd year using straight line method if cost of machine is Rs. 400,000, useful life is 5 years, residual value is Rs. 25,000 and sale price of machine is Rs. 35,000?
Amount generated from sales in a business is called:
Another name of net income or positive financial return is:
Machinery purchased on Credit for Rs 15000 will have an effect on which of the following accounts?
Expenses = ?
Which of the following is a liability of the business?
What is the next step to Journalizing in Accounting cycle?
The amount of depreciation charged on Furniture will be debited to:
Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liaibilities?
Debts that are not collectable and wothless to the creditor are known as:
Outsider’s claim against the assets of the business is called:
Salaries paid to employees Rs. 15,000. The effect of this transaction would be:
Which of the following is CORRECT if closing stock is only given in trial balance?
Cotton thread to make fabric in manufacturing concern is:
The proper classification of inventory account is:
Which of the following should NOT be recorded in journal voucher?
A transaction in which Cash A/c and Bank A/c are involved, is recorded on both the sides of Double Column Cash Book, it is called _________.
Which of the following is Not an Asset Account?
What will be debited, If Mr. “A” started business with Rs. 2, 00,000.
The first step in the posting process is:
Which of the following is/are the example/s of Intangible Asset?
Consider the following data: Particulars Rs. Assets 99,500 Owner's equity 50,500 Liabilities?
Which of the following account summarizes the profitability of business for a specific accounting period?
Generally Accepted Accounting Principles (GAAP) are necessary because financial statements
Revenues, expenses and net profit are found on a:
An accounting system is used by a business to:
Inventory is considered a current asset because it:
The "provisions for bad debt" account is:
In accounting accumulated depreciation is:
A sum of Rs. 8,000 paid as wages to repair the office furniture should be debited to:
While preparing a Debtors Control Account, Debit side posted items cause:
Which of the following is CORRECT for Provision for Doubtful Debts?
Select the most suitable equation which properly represents the derivation of fundamental Accounting Equation.
Net profit = Gross profit - _________
Factory overhead cost = Power & fuel cost + ________.
Which of the following should be shown on credit side of cash account?
ABC & Co. purchased office equipment on account. Which of the following accounts would be affected from this transaction? I) Assets II) Liabilities III) Expenses IV) Revenues
What is the nature of a revenue account?
If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be book value of machine after four years using straight line method?
Depriciation is mainly a process of ________ of cost of Fixed Asset over the useful life.
The main purpose of ___________ is to ascertain true result of the business operation during particular period of time.
Which one of the following is INCORRECT about closing Stock?
Working capital Rs. 20,000, Current liabilities Rs. 30,000 and fixed assets Rs. 100,000; calculate current assets?
In a manufacturing concern, rent of office building is included in ________.
The process of transferring journal entry information to the ledger is called:
At the end of accounting period a list of all ledger balances is prepared. This list is called ______.
According to diminishing balance method of charging depreciation:
While preparing a Debtors Control Account, Credit side posted items cause:
In a manufacturing concern, salary of supervisor is included in ________.
What will be debited, if Mohsin commenced business with cash?
The expenses which are NOT paid out of Gross Profit is classified as:
ABC co. has a capital of Rs. 100,000, Long Term Liabilities Rs. 50,000, net profit during the year Rs. 15,000 and the amount of total assets is Rs 175,000. What will be the amount of Current Liabilities?
Which of the following is NOT correct?
Budget is a plan of income, expenses & other financial operations for:
The journal entry to record purchase of furniture on credit would include a:
Discount received from a creditor is Debited under main head:
When there is no disagreement between cash book and bank statement then the favourable balance as per cash book (bank column) can be a:
What will be the effect on accounting equation if cash is invested by the owner in business?
Which of the following would be debited for incurred expenses to complete the fixed asset whose payment is made through cash?
The unexpired portion of direct cost is treated as:
Following information is extracted from Mr. A’s balance sheet: Cash Rs.100 Accounts Receivable 500 Accounts Payable 2 00 Bank Loans 1,000 Based on the information provided, what are Mr. A’s assets?
Under perpetual system of recording inventory, purchase of inventory is debited to ________.
In Book keeping, _________ is the first document to record an entry:
Which of the following is / are the particular/s of a cash book? (1) Date of transaction (2) Account title (3) Amount
Salaries expenses of Rs.5,000 is recorded as Rs. 500. What will be its effect on net profit?
Following are the parts of the debtors control account except:
In the partnership business, all of the following statements are true except which of the following?
Bank Reconciliation Statement is:
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