Accounting Mcqs

Page No. 21

Purchase book is maintained to record


aAll credit purchases

✓


bAll cash purchases

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cPurchases of goods

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dNone of the above

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View Answer All credit purchases

Which one of the following accounting equations is correct?


aAssets = Owner's equity

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bAssets = Liabilities + Owner's equity

✓


cAssets = Liabilities - Owner's equity

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dAssets + Liabilities = Owner's equity

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Which of the following event is subject matter of Accounting?


aDeath of key executive of the business

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bStrike of workers

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cPayment of Rs.1000 to bank in discharge of outstanding loan

✓


dMarriage of the daughter of the MD of the company

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Accounting is the process of matching


aBenefits and costs

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bRevenues and costs

✓


cCash inflows and outflows

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dPotential and real performance

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View Answer Revenues and costs

Which of the following subsidiary books serves the purpose of ledger too, in addition to the recording of accounting transaction?


aPurchases book

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bSales book

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cBills receivable book

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dCash Book

✓


View Answer Cash Book

The expenses that have fallen due for payment but not paid are


aOutstanding expenses

✓


bDeferred expenses

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cAccrues expenses

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dPrepaid expenses

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View Answer Outstanding expenses

Which of the following is/are fixed asset(s)?


aClosing inventory

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bFixed deposit in a bank

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cPatents

✓


dPrepaid expenses

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View Answer Patents

Which of the following is not an item of revenue expenditure?


aInterest on deposits accepted

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bAnnual insurance premium on inventory

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cCustoms duty paid in connection with the import of equipment

✓


dRepairs and maintenance on machinery

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Right shares are the shares


aIssued by a newly formed company

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bLegally issued to the public at large

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cOffered to the existing equity shareholders

✓


dThat have a right of redemption

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Carriage inwards refers to the cost of transportation for


aPurchase of materials

✓


bSale of products

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cReturns outward

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dReturn of unsold goods

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View Answer Purchase of materials

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