Accounting Mcqs

Page No. 11

What is the next step to Journalizing in accounting cycle?


aRecording

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bPosting

✓


cBalancing

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dAnalyzing

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View Answer Posting

Which one of the following is INCORRECT about closing stock?


aIt is added into current assets

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bIt is deducted from Material available for use

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cIt becomes opening stock of next year

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dIt reduces the resources of business

✓



Which of the following assets are shown at written down value in Balance sheet?


aCurrent assets

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bLiquid asset

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cFloating assets

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dFixed asset

✓


View Answer Fixed asset

Salaries paid in advance should be shown on


aAsset side of the Balance sheet

✓


bLiability side of the Balance sheet

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cCredit side of the Trading account

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dAll of the above

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Money spent to acquire or upgrade physical assets is known as


aRevenue expense

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bCapital expense

✓


cAdministrative expense

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dOperating expense

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View Answer Capital expense

Net Profit = Gross Profit minus


aOperating expenses

✓


bProduct cost

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cDeferred expenses

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dDirect cost

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View Answer Operating expenses

Which of the following is used to record financial transactions in chronological (day-to-day) order?


aVoucher

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bGeneral Journal

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cGeneral Ledger

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dTrial Balance

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View Answer General Journal

In an account, when credit side total < debit side total, then, the balance is known as


aNegative balance

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bDebit balance

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cPositive balance

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dCredit balance

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View Answer Debit balance

Which of the following is not an item of Balance Sheet?


aAccounts receivable

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bAccounts payable

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cSales revenue

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dMarketable securities

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View Answer Sales revenue

Which one of the following is NOT true about capital expenditure?


aCreates future benefits

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bIncurred to acquire fixed assets

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cIncurred to increase the economic life of existing fixed assets

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dReduce the profit of the concern

✓



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