Accounting Mcqs

Page No. 10

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


aSole proprietorship

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bCorporation

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cPartnership

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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

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bThe separate entity concept

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cThe prudence concept

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dMatching concept

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View Answer The prudence concept

The accrual basis of accounting records revenues when they are


aCollected

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bEarned

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cContracted

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dReadily available for use

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View Answer Earned

In balance sheet, fixed assets are shown at


aCost price

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bMarket value

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cFair value

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dWritten Down Value (WDV)

✓



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


aDepreciation

✓


bAccumulated depreciation

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cAppreciation

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dWritten Down Value (WDV)

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View Answer Depreciation

The assets which have a limited useful life are termed as


aLimited assets

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bDepreciable assets

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cUnlimited assets

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dNone of the above

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View Answer Depreciable assets

What is nature of Capital account?


aDebit

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bCredit

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cExpenses

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dLoss

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View Answer Credit

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


a Sales

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bPurchases

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cInventory

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dWork in progress

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View Answer Inventory

An expenditure whose benefit is finished or enjoyed immediately is called


aExpense

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bLiability

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cCost

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dIncome

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View Answer Expense

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


aLiability

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bExpense

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cIncome

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dCapital

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View Answer Liability

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