MCQGeeks
0 : 0 : 1
CBSE
JEE
NTSE
NEET
English
UK Quiz
Quiz
Driving Test
Practice
Games
Quiz
Commerce
Accounting
Quiz 8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Q.1
The allocation of owner's private expenses to his/her business violates which of the following?
Accrual concept
Matching concept
Separate business entity concept
Consistency concept
Q.2
The going concern concept assumes that
The entity continue running for forseeable future
The entity continue running until the end of accounting period
The entity will close its operation in 10 years
The entity can't be liquidated
Q.3
An alternative term used for accumulated depreciation expenses?
Provision for depreciation
Cumulative depreciation
Targeted depreciation
Depletion
Q.4
Under which depreciation method, the amount of depreciation expenses remains same throughtout the life of the asset?
Straight line method
Reducing balance method
Number of units produced method
Machine hours method
Q.5
Assets minus liabilities equal to
Goodwill
Working capital
Net income
Capital
Q.6
Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?
Income statement
Balance sheet
Cash flow statement
Statement of changes in equity
Q.7
Goodwill is classified as which one of the following assets?
Fixed
Long term
Current
Intangible
Q.8
Purchases + opening stock - closing stock = ?
Amount of sales
Gross profit
Cost of goods sold
Net income
Q.9
Which of the following financial statements shows the financial position of a business at a specific date?
Balance sheet
Income statement
Cash flow statement
Statement of changes in equity
Q.10
Land on lease should be shown in Blance sheet contrary to the fact that the company does not own that piece of land is the implementation of which accounting concept?
Matchig concept
Accrual concept
Prudence concept
Substance over form concept
Q.11
Depreciation is charged on fixed assets to comply with which of the following accounting principle?
Matching concept
Prudence concept
Timeliness concept
Reliability concept
Q.12
Net profit is computed in which of the following?
Balance sheet
Income statement
Cash flow statement
Statement of changes in equity
Q.13
Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?
The going concern concept
The separate entity concept
The prudence concept
Matching concept
Q.14
The concept of 'separate entity' is applicable to which of the following types of businesses?
Sole proprietorship
Corporation
Partnership
All of the above
Q.15
Which of the following is a selling expense?
Any tax/freight is paid on purchases
General salaries paid to laborers
Tax & freight paid on sale
Interest on deposits
Q.16
A debit balance in the bank statement indicates
Cash at bank
Bank overdraft
Over payment to creditors
Cash in hand
Q.17
American companies prepare their financial statement in Dollars whereas Japanese companies produce financial statement in Yen. This is an example of:
Stable monetary unit concept
Unit of measurement concept
Money value concept
Current swap concept
Q.18
Which of the following is time spann into which the total life of a business is divided for the purpose of preparing financial statements?
Fiscal year
Calendar year
Accounting period
Accrual period
Q.19
Information about an item is _______ if its ommission or misstatement might influence the financial decision of the users taken on the basis of that information
Concrete
Complete
Immaterial
Material
Q.20
Documentary evidence, in a specific format used to record the details of a transaction is known as
Account
Voucher
Journal
Ledger
Q.21
Cost incurred for the maintenance of shop is considered as
Deffered expense
Capital expenditure
Revenue expenditure
Preliminary expense
Q.22
Stock of a Trading concern consists of
Raw material
Work in progress
Merchandise inventory
All of the above
Q.23
Expenditure incurred annually on renewal of patent is a
Revenue expenditure
Capital expenditure
Financial expenditure
Operating expenditure
Q.24
Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required?
Yes
No
To some extent
It depends on the type of business
Q.25
The revenue recognition principle dictates that all types of incomes should be recorded or recognized when
Cash is received
At the end of accounting period
When they are earned
When interest is paid
Q.26
Which one of the following is NOT true about capital expenditure?
Creates future benefits
Incurred to acquire fixed assets
Incurred to increase the economic life of existing fixed assets
Reduce the profit of the concern
Q.27
Which of the following is not an item of Balance Sheet?
Accounts receivable
Accounts payable
Sales revenue
Marketable securities
Q.28
Which one of the following statement is CORRECT about long term liabilities?
These are due within one year
These consist of all debts, payabke after 12 months
In working capital, these are deducted from current assets
All of the above
Q.29
Which one of the following can offer its share to public at large?
Private limited company
Listed company
Partnership firm
Trust
Q.30
Double entry accounting system includes
Accrual accounting only
Cash accounting only
Both cash and accrual accounting
None of the above
0 h : 0 m : 1 s
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Support mcqgeeks.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page