Accounting Mcqs

Page No. 19

Bills receivable endorsed are debited to


aBills Payable A/c


bDebtor's A/c


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


bAn Account sale is sent to him


cA receipt is sent to him


dEither 'b' or 'c'



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


aContingent liability


bLiability


cProvision


dReserve


View Answer Provision

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


aMateriality


bPeriodicity


cAccrual


dConservation


View Answer Periodicity

Overriding commission is generally calculated on


aCash sale only


bTotal sales exceeding invoice value/cost


cCredit sales


dNone of the above



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


aFIFO


bSimple average


cBase stock


dSpecific identification method



Error which affect only one account can be


aError of complete omission


bError of posting


cCompensatory errors


dNone of the above


View Answer Error of posting

A Trial Balance contains the balances of


aOnly Real A/c


bReal A/c and Nominal A/c


cPersonal A/c


dBoth 'b' and 'c'


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


bProvision


cSecured loan


dNone of the above


View Answer Contingent liability

The installation expenses for a new machinery will be debited to


aCash A/c


bProfit & Loss A/c


cMachinery A/c


dInstallation expenses A/c


View Answer Machinery A/c

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