Accounting Mcqs

Page No. 12

A debit balance in the bank statement indicates


aCash at bank


bBank overdraft


cOver payment to creditors


dCash in hand


View Answer Bank overdraft

Which of the following is a selling expense?


aAny tax/freight is paid on purchases


bGeneral salaries paid to laborers


cTax & freight paid on sale


dInterest on deposits



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


aResidual value


bSalvage value


cScrap value


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


cCash flow statement


dStatement of retained earnings


View Answer Balance sheet

Double entry accounting system includes


aAccrual accounting only


bCash accounting only


cBoth cash and accrual accounting


dNone of the above



Cost incurred for the maintenance of shop is considered as


aDeferred expense


bCapital expenditure


cRevenue expenditure


dPreliminary expense


View Answer Revenue expenditure

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


aAccount


bVoucher


cJournal


dLedger


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


bBalance sheet


cTrial balance


dCash Book


View Answer Trial balance

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


aPurchases account


bMr. Ali account


cCash account


dSales account


View Answer Mr. Ali account

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


aStock account


bCash account


cSupplier account


dWork in progress account


View Answer Cash account

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