Accounting Mcqs

Page No. 10

The concept of 'separate entity' is applicable to which of the following types of businesses?


aSole proprietorship


bCorporation


cPartnership


dAll of the above


View Answer All of the above

Using 'lower of cost and net realisable value' for the purpose of inventory valuation is the implementation of which of the following concepts?


aThe going concern concept


bThe separate entity concept


cThe prudence concept


dMatching concept


View Answer The prudence concept

The accrual basis of accounting records revenues when they are


aCollected


bEarned


cContracted


dReadily available for use


View Answer Earned

In balance sheet, fixed assets are shown at


aCost price


bMarket value


cFair value


dWritten Down Value (WDV)



A decrease in value of a fixed asset due to age, wear and tear is known as


aDepreciation


bAccumulated depreciation


cAppreciation


dWritten Down Value (WDV)


View Answer Depreciation

The assets which have a limited useful life are termed as


aLimited assets


bDepreciable assets


cUnlimited assets


dNone of the above


View Answer Depreciable assets

What is nature of Capital account?


aDebit


bCredit


cExpenses


dLoss


View Answer Credit

A company's merchandise, raw materials, finished and unfinished products which have not yet been sold is known as


a Sales


bPurchases


cInventory


dWork in progress


View Answer Inventory

An expenditure whose benefit is finished or enjoyed immediately is called


aExpense


bLiability


cCost


dIncome


View Answer Expense

Outsider's claim against the assets of the business is called


aLiability


bExpense


cIncome


dCapital


View Answer Liability

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