Accounting Mcqs

Page No. 12

A debit balance in the bank statement indicates


aCash at bank

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bBank overdraft

✓


cOver payment to creditors

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dCash in hand

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View Answer Bank overdraft

Which of the following is a selling expense?


aAny tax/freight is paid on purchases

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bGeneral salaries paid to laborers

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cTax & freight paid on sale

✓


dInterest on deposits

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The estimated value at which an asset is expected to be sold after the end of its useful life is called


aResidual value

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bSalvage value

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cScrap value

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dAll of the above

✓


View Answer All of the above

Which of the following financial statements show the financial health of an organisation at a stated point of time?


aBalance sheet

✓


bTrading and Profit & Loss account

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cCash flow statement

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dStatement of retained earnings

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View Answer Balance sheet

Double entry accounting system includes


aAccrual accounting only

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bCash accounting only

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cBoth cash and accrual accounting

✓


dNone of the above

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Cost incurred for the maintenance of shop is considered as


aDeferred expense

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bCapital expenditure

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cRevenue expenditure

✓


dPreliminary expense

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View Answer Revenue expenditure

Documentary evidence, in a specific format used to record the details of a transaction is known as


aAccount

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bVoucher

✓


cJournal

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dLedger

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View Answer Voucher

An informal accounting statement that lists the ledger account balances at a point of time and compares the total of debit balances with the total of credit balances is known as


aIncome statement

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bBalance sheet

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cTrial balance

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dCash Book

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View Answer Trial balance

Which of the following account will be credited when the goods are purchased on credit from Mr. Ali?


aPurchases account

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bMr. Ali account

✓


cCash account

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dSales account

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View Answer Mr. Ali account

Which of the following account will be credited when the goods are purchased on cash?


aStock account

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bCash account

✓


cSupplier account

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dWork in progress account

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View Answer Cash account

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