Accounting Mcqs

Page No. 21

Purchase book is maintained to record


aAll credit purchases


bAll cash purchases


cPurchases of goods


dNone of the above


View Answer All credit purchases

Which one of the following accounting equations is correct?


aAssets = Owner's equity


bAssets = Liabilities + Owner's equity


cAssets = Liabilities - Owner's equity


dAssets + Liabilities = Owner's equity



Which of the following event is subject matter of Accounting?


aDeath of key executive of the business


bStrike of workers


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


dMarriage of the daughter of the MD of the company



Accounting is the process of matching


aBenefits and costs


bRevenues and costs


cCash inflows and outflows


dPotential and real performance


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


bSales book


cBills receivable book


dCash Book


View Answer Cash Book

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


aOutstanding expenses


bDeferred expenses


cAccrues expenses


dPrepaid expenses


View Answer Outstanding expenses

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


aClosing inventory


bFixed deposit in a bank


cPatents


dPrepaid expenses


View Answer Patents

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


aInterest on deposits accepted


bAnnual insurance premium on inventory


cCustoms duty paid in connection with the import of equipment


dRepairs and maintenance on machinery



Right shares are the shares


aIssued by a newly formed company


bLegally issued to the public at large


cOffered to the existing equity shareholders


dThat have a right of redemption



Carriage inwards refers to the cost of transportation for


aPurchase of materials


bSale of products


cReturns outward


dReturn of unsold goods


View Answer Purchase of materials

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