Accounting Mcqs

Page No. 19

Bills receivable endorsed are debited to


aBills Payable A/c

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bDebtor's A/c

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cEndorsee A/c

✓


dBills Receivable A/c

✖


View Answer Endorsee A/c

When the goods are returned to a supplier


aA Debit note is sent to him

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bAn Account sale is sent to him

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cA receipt is sent to him

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dEither 'b' or 'c'

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Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation is termed as


aContingent liability

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bLiability

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cProvision

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dReserve

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View Answer Provision

Economic life of an enterprise Is split into periodic interval as per ____ concept


aMateriality

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bPeriodicity

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cAccrual

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dConservation

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View Answer Periodicity

Overriding commission is generally calculated on


aCash sale only

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bTotal sales exceeding invoice value/cost

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cCredit sales

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dNone of the above

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In case goods are manufactured and segregated for specified consumers, the best method for valuation of inventory would be


aFIFO

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bSimple average

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cBase stock

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dSpecific identification method

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Error which affect only one account can be


aError of complete omission

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bError of posting

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cCompensatory errors

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dNone of the above

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View Answer Error of posting

A Trial Balance contains the balances of


aOnly Real A/c

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bReal A/c and Nominal A/c

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cPersonal A/c

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dBoth 'b' and 'c'

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View Answer Both 'b' and 'c'

When obligation is not probable or the amount expected to be paid to settle the liability cannot be measured with sufficient reliability, it is called


aContingent liability

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bProvision

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cSecured loan

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dNone of the above

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View Answer Contingent liability

The installation expenses for a new machinery will be debited to


aCash A/c

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bProfit & Loss A/c

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cMachinery A/c

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dInstallation expenses A/c

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View Answer Machinery A/c

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